Aim-listed battery materials developer Strategic Minerals says underlying sales volumes continued to improve during the December quarter, despite litigation against a major customer.
The company on Tuesday reported that sales revenue during the last quarter of 2019 was 12.5% higher compared with the last quarter of 2018, however, sales revenue for the whole year was weaker than comparative years, owing to the adverse impact of Cobre’s major customer’s diminished purchases.
Strategic Minerals owns the Cobre magnetite operation, in New Mexico.
The company has appointed an arbitrator to handle the dispute with this major customer and a meeting is expected to be scheduled shortly.
Strategic Minerals had made an arbitration claim for at least $21-million in damages and lost profit against its main customer, in September last year.
Meanwhile, the company has focused on securing new customers.
“Stable sales volumes and continued organic growth at Cobre provides the company with a solid foundation from which the board can look to execute its strategy across the wider portfolio. Access to the magnetite stockpile is expected to automatically rollover at the end of February.
"The key focus in 2020 remains on developing a reliable second income stream from the Leigh Creek copper mine, in Australia, and Strategic Minerals is engaged in a number of active discussions with potential sources of financing to move its projects forward via a solution which is best for the company and its shareholders alike," MD John Peters stated.