RE: SP Angel31 Oct 2025 09:18
AI Summary of latest Broker Note....
This document is a non-independent research note issued by SP Angel Corporate Finance LLP, acting as Nomad and Broker for Strategic Minerals (SML LN). It provides an analysis of Strategic Minerals' Redmoor Tungsten-Tin-Copper Project in Cornwall, highlighting its potential as one of the highest-grade undeveloped tungsten resources in Europe and globally.
Key points:
Strategic Minerals is an AIM-listed company developing the Redmoor project, which has a 2019 JORC ‘Inferred’ Mineral Resource of 11.7mt at 0.56% WO3, 0.16% Sn, and 0.5% Cu.
A ~5,300m drilling campaign is underway to upgrade, extend, and evaluate the resource. Recent drilling has shown visible mineralisation, including tungsten, tin, and copper.
Metallurgical test work is ongoing to assess ore-sorting potential and flow-sheet design.
The 2020 scoping study estimated a US$86m 600ktpa underground mining operation with an after-tax NPV8% of US$128m and IRR of 29%. Updated commodity prices significantly improve project economics, with an estimated NPV8% of ~US$400m and IRR of 53%.
The project is sensitive to commodity price changes, with a 10% price variation impacting NPV8% by ~20%.
A revised mineral resources estimate and updated project economics are expected in Q1 2026.
The note includes disclaimers about its non-independent nature, potential conflicts of interest, and the risks associated with investments. It is intended for professional clients and eligible counterparties, not retail clients.