Strategic Minerals SML.LN, one of London AIM's few iron ore miners currently in production, edge closer to the start of large scale rail shipments from their COBRE magnetite stockpile in New Mexico.
SML who recently secured a major off-take deal with Glencore, are set to make their first rail shipment in April, where initial output will be approximately 40,000 tonnes per month ramping up to 60,000 tonnes per month. These significant shipment volumes will generate strong cash flows for SML over the life of COBRE (up to 8.75 years) based on 6,570,000 stockpile
resource processed at a rate of 750,000 tonnes per year.
The company will use the cash proceeds to rapidly advance its flagship east Australia Iron Glen magnetite project. With surrounding rail head serving the Iron Glen site and providing a convenient link to the bulk commodity deep sea shipment Port of Townsville, Iron Glen is ideally positioned to supply both export ready magnetite to world markets, but also to serve the heavy local demand for magnetite DMS from the cluster of coal companies operating in the nearby Bowen Basin.
www.strategicminerals.net
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