Strategic Minerals (SML) , the AIM listed mineral development company for battery materials, reported underlying sales volumes improving from its Cobre magnetite operation in New Mexico, USA.
Underlying sales revenue in the third quarter was 26.3% higher than last year’s quarter, and it reported a third quarter cash balance of $760,000 as of 30 September 2019.
Commenting, John Peters, Managing Director of Strategic Minerals, said: "Sales volumes at Cobre rebounded and this augurs well for sales over the coming year.”
The company reported however that sales revenue for the year was weaker than in 2018 and 2017 due to a major client’s diminished purchases.
Strategic Minerals said it made a claim under the contract, after $750,000 of deposits from a major client had to be forfeited. It told investors that an arbitration meeting is being scheduled.
Mr. Peters commented: "The progression of a formal claim against the major client at Cobre has resulted in the Board having to reconsider the pace at which it can progress planned projects. We also remain in various funding and investment discussions.”
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