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Strategic Minerals announces its interim results
Strategic Minerals Plc, the diversified mineral development and production company, annonces announce its unaudited interim results for the half year ended 30 June 2018.
Financial Highlights include:
· After tax profit of $2,406,000 (H1 2017 $158,000)
· Corporate activity, through the acquisition of Leigh Creek Copper Mine ("LCCM"), adds significant value as noted by the Company booking an after tax profit of $2.4m (AUD $3.1m) on its purchase. The price at which the Company was able to purchase LCCM, while a fair price for its vendors, reflected the limited financial resources the vendors had available to progress the project to an operational level. The profit booked, reflects the independently estimated added value the Company has already brought to the project through its ability to supply such capital.
· Pre-tax profit of $1,246,000 (H1 2017: $690,000) from the Company's Cobre operation, prior to intercompany management charges, continues to underpin corporate cash flow.
· Directors exercised 15m vested options and acquired further stock in the Company.
· Issue to Directors of 128m options over three tranches vesting at 5.5p, 7.5p and 10.0p.
· Investment in Cornwall Resources Limited ("CRL") of $107,317, the owner of the Redmoor tin-tungsten project, maintaining the Company's 50% interest in CRL.
· Issue of 38,700,900 SML shares, in April 2018, issued at the month of March 2018 Volume Weighted Average Price ("VWAP") of 1.9067 pence per share as part payment for the acquisition of LCCM.
· Unrestricted cash and cash equivalents at 30 June 2018 were $1,988,000 (31 Dec 2017: $3,706,000). The reduction in cash balances reflects the acquisition of LCCM, payment of US tax liabilities and investment into CRL.
Commenting, John Peters, Managing Director of Strategic Minerals, said:
"The first half of 2018 has been a pivotal period for the Company, most notably with the completion of the watershed acquisition of Leigh Creek Copper Mine. We believe the acquisition of this asset and the expected commencement of its operations in 2019 provide a strategically significant shift in the risk profile of the Company. The addition of a second revenue stream, particularly one derived from a wholly owned asset, ensures the sustainability and access to cash flows that form the base on which the Company expects to create long term growth for its projects and provide value to its shareholders.
"We are also delighted to welcome Jeff Harrison to our Board. His arrival has significantly expanded the Company's skill base as it enters an extremely exciting period in the development of Leigh Creek, Redmoor and Hanns Camp."