(Alliance News) - Strategic Minerals PLC expressed a confident outlook on Wednesday following a "rebound" in sales from the Cobre project.
Magnetite sales from Cobre, in New Mexico, rose 89% year-on-year for the three months to September to USD1.1 million, with tonnages rising 23% to 12,704. Underlying sales rose 26%.
This, Strategic said, came after the resumption of regular demand patterns from existing clients at Cobre, excluding one major customer.
In September, the company began legal proceedings against the unnamed major customer after a "breakdown in negotiations". It has made claims of USD2.3 million, plus recompense for lost profit of USD19.0 million.
"Sales volumes at Cobre rebounded and this augurs well for sales over the coming year," said Managing Director John Peters.
"The progression of a formal claim against the major client at Cobre has resulted in the board having to reconsider the pace at which it can progress planned projects. We also remain in various funding and investment discussions. The board intends updating the market on these plans as they formalise."
Strategic shares were 4.3% lower on Wednesday in London at 0.72 pence each.
By George Collard; georgecollard@alliancenews.com
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Strategic Minerals (SML)