Peter Wale of Strategic Minerals discusses the extension of access to the magnetite stockpile at Cobre
Episode 645, Mar 31, 2022, 11:33 AM
Peter Wale, Executive Director of Strategic Minerals #SML discusses the successful extension of its access to the magnetite stockpile at Cobre due to the recently announced rollover to 31 March 2023 until 31 March 2027.
Peter Wale, Executive Director of Strategic Minerals #SML discusses the successful extension of its access to the magnetite stockpile at Cobre due to the recently announced rollover to 31 March 2023 until 31 March 2027.
Cobre Update
From 2017, Clovis Hooper, the President of the Company's 100% owned subsidiary Southern Minerals Group LLC ("SMG"), and John Peters, Strategic Minerals plc's Managing Director, have repeatedly sought an exclusive, longer-term extension of access to the magnetite stockpile at Cobre. The certainty of access from an exclusive extension is desirable to SMG and the Company, as it not only provides long term cash flow for both but establishes a framework in which SMG can more aggressively seek additional sales, through its ability to provide long term certainty of supply.
From 2017, Clovis Hooper, the President of the Company's 100% owned subsidiary Southern Minerals Group LLC ("SMG"), and John Peters, Strategic Minerals plc's Managing Director, have repeatedly sought an exclusive, longer-term extension of access to the magnetite stockpile at Cobre. The certainty of access from an exclusive extension is desirable to SMG and the Company, as it not only provides long term cash flow for both but establishes a framework in which SMG can more aggressively seek additional sales, through its ability to provide long term certainty of supply.
Until now, the stockpile owner had been reticent to provide longer term access to allow for the possibility of reorganising its mining activities, conducted nearby the stockpile. However, the good will built up during the ten years of operations, combined with the impeccable work undertaken by the SMG team, ensuring contactless and safe operations throughout the pandemic, have resulted in this milestone extension.
Given that, historically, March and early April are the busiest times for operations at Cobre, a concerted marketing program is being planned for May of this year.
Sales at Cobre have recovered to previous levels after the dip experienced from October 2021 through to January 2022. The combination of the extension of access and the planned marketing programme is expected to reflect in sales growth in the second half of the year.