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Strategic Minerals targets £100mln value as iron ore deliveries ramp up

Revenues from its New Mexico–based iron ore business Cobre Magnetite hit another record in July
picture of iron ore works
Cobre tailings dump is in New Mexico

Strategic Minerals PLC (LON:SML) has set itself a target to quadruple in value over the next five years.

The iron ore, tungsten and tin and cobalt group said that based on the potential in these businesses (plus some more acquisitions) it can see scope for its market value to rise to £100mln from £30mln currently.

Revenues from New Mexico–based iron ore business Cobre Magnetite hit another record in July, though the quarter to June was affected by transport issues at the end of the three months.

READ: Strategic Minerals PLC extends drilling at Redmoor

These have since been resolved, Strategic said.

Volumes were 10,446 tonnes in the quarter to June against 14,264t in the previous three months, but rebounded to 7,206t in July as a new customer taking 4,000t per month started to receive deliveries.

Talks are still ongoing over a new extended talings access contract at Cobre, but it said the mine owners have asked it to relocate its offices at the site, which it beleives indicates planning for an extended period.

Cash at the end of June was US$1.36mln, reflecting a prepayment from its new iron ore customer.

Elsewhere, at Redmoor in Cornwall, two holes have been added to the drill programme for tin and tungsten while an air core drill programme is underway at Hanns Camp, the nickel/cobalt project in Australia.

Alan Broome, chairman, said: "In the March quarter, the addition and subsequent replacement of a new client for our Cobre operations points towards a profitable 2017. The board and management consider the company is in a strong position and are constantly reviewing both internal and external opportunities to ensure that cash resources are utilised most effectively in order to deliver value to our shareholders."

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