Strategic Minerals (LSE:SML) has published an updated economic sensitivity analysis for its Redmoor project in Cornwall, pointing to significantly improved potential economics compared with a 2020 assessment. The study outlines a base case after-tax net present value of approximately US$1.54 billion, an internal rate of return of 40%, and estimated pre-production capital expenditure of around US$109.7 million.
The analysis remains preliminary and is based entirely on Inferred mineral resources. However, it demonstrates robust value across multiple commodity price scenarios, incorporating higher assumed tungsten prices and reflecting an expanded mineral resource expected in 2026. The findings highlight Redmoor’s potential to rank among the most promising undeveloped tungsten assets globally, with an indicative mine life of roughly 29 years. Further project de-risking is expected through a planned prefeasibility study.
The company’s near-term outlook is supported by stronger financial performance reported in 2024 and favourable technical indicators that point to a sustained upward trend in the share price. However, this positive outlook is tempered by valuation concerns, including a relatively high price-to-earnings ratio and the absence of dividend yield data. Technical indicators also suggest the stock may be in overbought territory, which could increase the risk of short-term volatility.
More about Strategic Minerals
Strategic Minerals plc is an international exploration and production company focused on critical metals development. Through its wholly owned subsidiary, Cornwall Resources Limited, the company is advancing the Redmoor tungsten–tin–copper–silver project in southeast Cornwall. The project is positioned to contribute to the strategic supply of tungsten while supporting the development of a long-life underground mining operation in the region.
Leave a Reply