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(Alliance News) - Strategic Minerals PLC on Tuesday posted a swing to profit for the first half of 2020, driven "strong" sales and reduced expenses.
Shares in the mineral production and development company were trading 5.9% higher at 0.45 pence each on Tuesday afternoon in London.
For the six months ended June 30, Strategic Minerals posted a pretax profit of USD261,000, a significant swing from the USD988,000 loss recorded a year prior. This was as revenue rose by 60% year-on-year to USD1.6 million from USD1.0 million.
The company credited the improvement to strong sales at its Cobre magnetite US operations, reduced overheads, and a reduction in impairment charges. Overhead expenses were reduced to USD902,000 from USD1.2 million, and impairment charges almost disappeared to USD17,000 from USD760,000.
During the first half, Strategic Minerals secured full control of the Redmoor tin-tungsten project having made the final payment for the acquisition of the balance of Redmoor, which is located in Cornwall.
Looking ahead, Managing Director John Peters said: "The second half of the year is expected to see continued demand at Cobre as well as expected reductions in both US legal costs and the charge for share based payments. The board looks forward to both the results from the expressions of interest program at Redmoor and seeing the long sought-after second income stream commence from the Leigh Creek Copper Mine in 2021."
The company stated the recent strong performance of copper price has improved forecasted profitability at the Leigh Creek Copper mine, adding it feels confident that 2021 will see full scale production re-commence at Leigh Creek.
Cash held as at June end was USD533,000.
By Ife Taiwo; ifetaiwo@alliancenews.com
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