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(Sharecast News) - Strategic Minerals reported record-breaking sales for the quarter ended 30 June on Tuesday, driven by a significant increase in demand at its Cobre operation.
The AIM-traded company announced that June quarter sales revenue reached $1.296m, representing an increase of over 250% compared to $0.367m in the same quarter of 2023.
That marked the highest June quarter sales on record for the company.
The board put the substantial growth in sales down to the return of Cobre's major client and the acquisition of a new significant client.
It said the impressive performance for the quarter was also a 95% increase from June 2022 sales, when the major client was active.
Given the strong performance, Strategic Minerals upgraded its full-year sales forecast for 2024, now expecting revenues to exceed $4m, up from $1.6m in 2023.
Sales volumes were projected to surpass 60,000 tons, a significant rise from 17,965 tons in 2023.
The company highlighted that all outstanding creditors, excluding directors and management, were now up to date.
That improvement followed a period of careful financial management necessitated by a substantial reduction in sales during 2023.
With the robust sales performance in the first half, Strategic Minerals said it had repaid one of its short-term funding facilities of AUD 50,000, and expected to repay the remaining two facilities totaling AUD 100,000 by October.
Despite the financial improvements, the company noted that outstanding remuneration to the board and management had increased to $518,000 by 30 June, from $360,000 at the end of 2023.
Payment of the deferred remuneration was expected to start later in the year, and be completed by the first half of 2025.
"The quarter's sales have exceeded our expectations and bode well for a strong performance at Cobre in 2024, with forecasted annual sales now upgraded and expected to exceed $4m," said managing director John Peters.
"Management continues to progress negotiations with potential investors on both its Redmoor and Leigh Creek projects as well as seeing cautious signs of more widespread renewed investor interest.
"Until such time as a project related liquidity event occurs, the company will continue to closely monitor short term cash flow and remains committed to avoiding the need for a dilutive capital raise, currently considered unnecessary."
At 1159 BST, shares in Strategic Minerals were up 33.33% at 0.2p.
Reporting by Josh White for Sharecast.com.
