Strategic Minerals (SML), an AIM-listed mineral production company, announced record Cobre magnetite sales for the quarter ending 30 September 2024, achieving the highest September quarter revenue in seven years.
Quarterly Revenue: Sales reached US$1.273 million, a 215% year-on-year increase from the US$0.404 million reported in Q3 2023.
Annual Forecast: Total sales for 2024 are now anticipated to exceed US$4.5 million, supported by strong demand from both returning and new clients.
Volume Growth: Cobre sold over 50,000 tons in the first three quarters, projecting full-year volumes to surpass 60,000 tons, compared to 17,965 tons in 2023.
Debt Repayment: The company has fully repaid its remaining AUD$100,000 loan facilities, signalling improved cash flow.
The surge in sales revenue was driven by the return of a major client andthe addition of a significant new client, reflecting a strong recovery from the challenging conditions experienced in 2023. The current quarter also marks a 95% increase from Q3 2022, highlighting a continuing upward trend. The company attributes this growth to consistent demand for
magnetite, supported by a diverse client base.
Strategic Minerals highlighted that it had to navigate financial challenges earlier this year due to low sales in 2023 and working capital requirements for 2024 sales growth. The repayment of the remaining loan facilities signifies a bolstered financial position, allowing for more strategic flexibility.
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This update underscores promising Cobre operations, with quarterly revenue growth outpacing not only 2023 but also surpassing pre-disruption levels from 2022. Moreover, by addressing debt, Strategic Minerals has demonstrated a commitment to strengthening its balance sheet, which will appeal to retail investors seeking companies with
improving financial health and growth potential. As for Strategic Minerals’ diversified portfolio with projects, it provides additional growth channels that could offer valuable upside should the market continue to expand.