(Sharecast News) - Strategic Minerals reported record-breaking sales figures for February at its Cobre magnetite stockpile on Thursday.
The AIM-traded firm said that, with a sales tonnage of 4,898 tons, February saw the highest sales volume for the month in six years, making for a robust start to the year.
The surge in February sales was partly put down to heightened demand from fertiliser companies, which typically experience seasonal spikes during the period.
Building on the momentum of February's success, Strategic Minerals forecast sales of 13,000 tons per quarter after March, which would generate revenues of around $3.5m for the year.
Southern Minerals Group (SMG), a wholly-owned subsidiary responsible for operating the Cobre facility, was responding to the growth by acquiring a Caterpillar excavator to meet anticipated increases in volume.
The acquisition aimed to ensure uninterrupted production, particularly during challenging weather conditions, such as those experienced during the winter to spring transition.
Straategic said the purchase was financed through a four-year loan provided by Caterpillar Finance, with an interest rate of 4.99% per annum.
"Encouraging sales in February and expectations of returning to quarterly sales of circa 13,000 tons are providing a robust cash flow outlook for the end of 2024, after resolving creditor payments arising from 2023," said managing director John Peters.
"Cobre's revamped management line up has risen to the challenge and recently sought the addition of a Trackhoe 320 to ensure continuation of higher volume operations in difficult weather conditions.
"Not only was this sourced locally but the acquisition was wholly financed, with repayments spread in line with future cash flow expectations."
Peters said discussions with another potentially large client at Cobre were ongoing, but due to recent increases in activity, they were now focussed on future years supply.
"At present, we anticipate further news flow from projects this month and beyond."
At 1113 GMT, shares in Strategic Minerals were up 21.68% at 0.28p.
Reporting by Josh White for Sharecast.com.
Strategic Minerals (SML)