Strategic Minerals is confident it can start exporting magnetite iron ore soon from its Cobre mine in New Mexico.

The company said it was particularly disappointed with the collapse of the iron ore price given that it is now ready to commence commercial shipments after completing the rehabilitation and upgrade of the rail link to the port of Guaymas in Mexico back in June 2012.

At full capacity, the rail facility will be able to handle over 50,000 dry metric tonnes a month.

Mr Jame Fyfe executive chairman of Strategic Minerals said that "We have been exploring ways to operate and trade profitably in this volatile price environment and management are confident that the company can commence exports shortly."

The news came in the company’s report on the six months to June 30th 2012, a period in which Strategic generated its first revenues.

Mr Fyfe said that although sales of its magnetite deposit at Cobre to the US domestic market were modest, they have continued to grow strongly in the second half of 2012.

The company made a loss of GBP 1.2 mln for the period, less than last year's first half loss of GBP 1.6 million.

Strategic attributed the loss to one off costs of GBP 922,000 relating to share based payments and GBP 407,000 for AIM admission costs.

Source - Proactive Investors

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