Zeus Valuation Summary20 Sep 2025 16:20
Redmoor is a tungsten-tin-copper exploration project in Cornwall, UK. We use many of the
production parameters from the 2020 scoping study together with updated capital and operating
costs and smelter charges (Zeus estimates). Redmoor drives our valuation and unrisked, on the
parameters set out in Exhibit 4 and Exhibit 5, the value to Redmoor would be 6.3p/sh. Of course,
there are many hurdles to cross in terms of further exploration, economic studies, permitting,
funding, construction and commissioning before that value can be realised – and we expect
further dilution on fund raises, financing and the potential sale of a stake to a strategic partner.
However, the valuation (Exhibit 3, Exhibit 4 and Exhibit 5) shows just why Redmoor is a priority
project for Strategic Minerals.
Cobre is operating and we use an anticipated cash flow from the magnetite operation in a DCF
over 10 years using a 10% discount rate. We use the average cash flow (Zeus est.) of the past
four years ($1.2m) recognising that Cobre has good and bad years based on customers and
negotiated price received. We expect Cobre to keep producing for Strategic Minerals as it has
over the past 14 years since 2011 providing cash for head office and operational costs. Strategic
Minerals already has a new customer for 30kt of magnetite which should see profits boosted for
2025 after the improved sales in 2024 of 71kt and PBT of $2.7m.
For Leigh Creek we use a risked sales price for Leigh Creek, risking the final A$9m anticipated
(RNS’ 24.4.2025 and 18.6.2025) in shares, cash and royalty payments at 50%. The risk factor is a
binary outcome which we shall move as Axis Mining and Minerals (the purchaser) makes
progress. We expect the payments from Leigh Creek to be put to good use at Redmoor.
Upsides to our valuation
We see multiple opportunities to increase value in Redmoor. These are listed below, in no
particular order:
Reduction in risk from the normal stages of project and mine development (per tonne
resource increase as Strategic derisks the deposit and EV/EBIDTA once in production).
Increase in prices received or reduced smelter charges,
Improvements in recoveries of the principal metals
Exploration success with further resources for an increase in throughput and/or mine life
Addition of further resources for a central processing plant at Redmoor from outlying targets.
Payment for further revenue elements. Strategic highlighted silver in its recent RNS
(30.6.2025) which could, in our view, provide further~$7m in net revenue –
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