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(Sharecast News) - Strategic Minerals said in an update on Wednesday that in the March quarter, sales revenue from Cobre totalled $0.841m, marking an increase of over 100% compared to the same period in 2023.
The AIM-traded firm said the addition of a new client, expected to procure between 5,000 and 7,000 tons annually, hd contributed significantly to the growth.
Furthermore, the acquisition and operation of a trackhoe minimised weather disruptions during truck loading, ensuring operational continuity particularly during adverse weather conditions in the US winter and early spring.
The quarter's performance reaffirmed the company's expectation that full-year sales volumes for Cobre in 2024 would surpass 50,000 tons, with revenues projected to exceed $3.5m - a significant increase from 2023 figures.
To manage cash effectively and sustain operations amidst reduced sales in 2023, the company said it leveraged creditor management and reduced cash payments to its board.
In light of anticipated future sales volumes and historical creditor balances, Strategic Minerals said it had augmented its short-term financing facilities.
An additional six-month AUD 50,000 (£26,074) funding, sourced from another individual investor, was secured, complementing the existing AUD 100,000 facility.
The funding carried an interest rate of 12% per annum, and included 10,000,000 warrants, aligning with previous warrant terms with an exercise price of 0.5p and maturity on 31 December 2025.
Strategic Minerals said the measures, undertaken through its subsidiary Ebony Iron, would bolster its financial position and provide liquidity for ongoing operations and project development.
"The quarter's sales have confirmed our expectations for a strong performance at Cobre in 2024 and a likely annual result exceeding $3.5m," said managing director John Peters.
"The team at our New Mexico operations have managed the resurgence in demand and rebuilt the team after having to contract operations during the 2023 downturn.
"New, fully externally funded, equipment has assisted to ensure smooth operation during inclement weather."
Peters said management remained focussed on short-term cash flow, with the company committed to avoiding the need for a dilutive capital raise, which the board and management currently considered unnecessary.
"With after tax cash flow in 2024 being applied to normalising creditor balances, built up during the sales downturn in 2023, the company expects 2025 will see after tax balances accruing."
At 1002 BST, shares in Strategic Minerals were up 2.91% at 0.23p.
Reporting by Josh White for Sharecast.com.
