LONDON (ShareCast) - (Sharecast News) - Strategic Minerals reported a challenging year in its final results on Friday, marked by significant financial and operational hurdles.
The AIM-traded company experienced a 36% drop in sales revenue to $0.87m, primarily due to the prolonged suspension of sales to Cobre's largest client.

It said the suspension, expected to last a maximum of six months, extended throughout 2023, significantly straining its cash flow.

The group reported a before-tax loss of $9.08m - a stark contrast to the $0.37m profit in 2022.

Excluding non-cash adjustments for impairment, the before-tax loss for 2023 was $0.18m.

A major factor contributing to the loss was the failure to secure financing for the Leigh Creek Copper Mine (LCCM) project, leading to a full impairment of its book value at $8.9m.

As a result, the comprehensive loss for 2023 amounted to $9m, compared to a $0.36m loss a year earlier.

Operationally, the net cash generated from operating activities decreased to $0.6m from $0.78m in 2022.

The group's unrestricted cash position at the end of 2023 was $0.11m, down from $0.34m in 2022.

Despite the challenges, the company actively managed its cash position with support from suppliers and management.

Notably, the receiver for CV Investments continued efforts to secure assets, but no clarity had been provided regarding payment amounts or timing for Southern Minerals Group's claim.

Cornwall Resources (CRL) completed its involvement in the Deep Digital Cornwall project, with findings published in November and final payments received in early 2024.

CRL also pursued grant funding from the Shared Prosperity Fund, involving extensive negotiations and revisions.

A significant change in leadership occurred in November, with the resignation of the president of SMG and the promotion of pit superintendent Tim Klumker to president.

Klumker, with more than six years at the company, received additional support during the transition, with the board saying the team had shown resilience with stronger sales in early 2024.

In December, negotiations with one of Cobre's former largest clients led to an agreement for substantial magnetite purchases, starting in mid-January.

Strategic Minerals said it was continuing to focus on metals and minerals poised to benefit from supply and demand imbalances, with an emphasis on copper and tin, underscoring the company's strategic direction despite the financial setbacks experienced in 2023.

At 1200 BST, shares in Strategic Minerals were up 5.56% at 0.19p.

Reporting by Josh White for Sharecast.com.

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