LONDON (ShareCast) - (Sharecast News) - Strategic Minerals updated the market on the Cobre magnetite operation in New Mexico on Friday, reporting that sales to the project's largest client returned to "normal levels" in February and March.
The AIM-traded firm said sales for both the March quarter and the year to 31 March totalled $0.7m and $2.5m, respectively, being impacted by weaker January sales.

It reported improved prospects for future sales due to a five-year extension of access to the magnetite stockpile, until March 2027.

During the quarter, Strategic lodged a formal submission of claim to the receiver of CV Investments.

Group cash balances stood at $0.615m as at 31 March.

The board said it was awaiting formal correspondence from the South Australian government on the conditions of the Leigh Creek Copper Mine programme for environmental planning and rehabilitation.

Since the period ended, the company agreed an extension to the Redmoor exploration licence in Cornwall, to 2037.

"The resumption of demand from the largest Cobre client combined with the long-awaited formal extension of access for five years, has placed the company on a solid cash flow footing for the years ahead," said managing director John Peters.

"With an expectation of recommencement of operations at Leigh Creek this year and ever greater focus on mining in Cornwall combining with our licence extension, the board and management are looking forward to a promising future for the company in 2022."

At 0939 BST, shares in Strategic Minerals were down 0.71% at 0.35p.

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