Proactive Investors - Strategic Minerals (LON:SMLP) told investors that its priorities for 2024 are restarting production at Leigh Creek (LCCM), securing and expanding Cobre's profitable domestic sales and progressing the Redmoor Tin and Tungsten mine to a "pre-feasibility" stage.
In addition, it is actively pursuing non-dilutive funding approaches, both joint venture and debt style, to progress both LCCM in Australia and Redmoor in Cornwall.
“The low holding cost of these projects, the low level of debt in the Company and the now extended access to the Cobre magnetite stockpile, with its associated cash flow, provide the company with the flexibility, when considering financing options, to extract maximum value from these investments.
“Current expectations are that funding for LCCM can be sourced so that production can commence later in 2024.”
“The robust performance of commodity prices, notably copper and tin, have provided some optimism for the company.”
Elsewhere, Redmoor timeframes here are longer with the next goal being the preparation of a pre-feasibility study to be followed by a bankable feasibility study.
Each study is expected to take two to two and a half years to complete, and the company has begun to access grant funding to assist in the completion of the pre-feasibility study.
Losses for the year to end December 2023 were US$9.1 million after a US$9 million impairment charge for Leigh Creek.
Without that, losses for the year were US$180,000 (2022: profit US$360,000).
Sales revenue fell 36% to US$0.869m reflecting the absence of Cobre's major client, which has since resumed shipments.