Strategic Minerals (SML) H2 2023 earnings summary

Executive summary

• Revenue declined 36% to $1.58m due to the loss of Cobre's major client, resulting in a comprehensive loss of $9.0m for 2023, primarily from an $8.9m impairment of the Leigh Creek Copper Mine (LCCM).

• Cash flow was tightly managed, with year-end unrestricted cash at $0.11m, down from $0.34m in 2022.

• The major Cobre client returned in January 2024 with a larger purchase order, improving 2024 prospects.

• Strategic focus remains on metals with strong demand outlook, notably copper and tin.

Financial highlights

• Group before tax loss was $9.08m (2022: profit $0.37m); excluding impairment, loss was $0.18m.

• Net cash from operating activities was $0.60m (2022: $0.78m).

• Overheads reduced by 6% to $1.46m.

• Loss after tax was $9.19m (2022: profit $0.08m).

• No dividend proposed for 2023.

Outlook and guidance

• 2024 expected to benefit from renewed Cobre sales and improved commodity prices.

• LCCM restart targeted for 2024, subject to funding; Redmoor project advancing to pre-feasibility with grant support.

• Company pursuing non-dilutive funding for project development.