Notice of MRE/Economic Update & Webinar

Strategic Minerals plc (AIM:SML) has announced that its subsidiary, Cornwall Resources Limited, is set to release an updated Mineral Resources Estimate (MRE) and Economic Sensitivity Analysis for its Redmoor Tungsten-Tin-Copper Project on March 26, 2026. This update is significant as it will incorporate recent exploration drilling results, relogging activities, and historical datasets, which are expected to enhance the project's value proposition. The MRE will consolidate findings from both recent drilling and historical data dating back to the 1980s, while the Economic Sensitivity Analysis will revise the outputs from the 2020 Redmoor Scoping Study, taking into account updated metallurgical testwork results and new metal price assumptions. The project has received part-funding from the UK Government through the UK Shared Prosperity Fund, underscoring its strategic importance within the region.

The Redmoor Project, located in the historically significant Tamar Valley Mining District in Cornwall, UK, represents a critical asset for Strategic Minerals. The upcoming MRE and Economic Sensitivity Analysis are pivotal as they will provide updated insights into the project's resource potential and economic viability. The last published JORC-compliant Inferred Mineral Resource Estimate indicated a total inferred resource of 11.7 million tonnes, with tungsten, tin, and copper grades that could be economically viable given the right market conditions. The announcement of the MRE and Economic Sensitivity Analysis is timely, considering the increasing global demand for these metals, particularly tungsten and tin, which are essential for various industrial applications.

From a financial perspective, Strategic Minerals, with a market capitalisation of GBP 147.7 million, is well-positioned to leverage the outcomes of the upcoming MRE and Economic Sensitivity Analysis. The funding from the UK Shared Prosperity Fund not only mitigates some of the financial risks associated with exploration and development but also demonstrates governmental support for the project. However, the company must remain vigilant regarding its capital structure and funding sufficiency. While the announcement does not specify current cash balances or recent burn rates, the reliance on government funding could indicate a need for additional capital to sustain ongoing operations and development activities. Investors should monitor any future capital raises or share issuances that could dilute existing holdings.

In terms of valuation, the upcoming MRE and Economic Sensitivity Analysis will likely impact Strategic Minerals' enterprise value, particularly if the results indicate a substantial increase in the resource estimate or improved economic metrics. Comparatively, the company's valuation can be assessed against peers in the tungsten and tin mining sector. Direct peers include companies such as Tungsten West plc (AIM:TUN), which is focused on tungsten production and has a market cap that aligns with Strategic Minerals, and other similarly sized companies in the sector. For instance, Tungsten West plc has been advancing its own projects, and its market cap is within a comparable range, making it a relevant benchmark for valuation analysis. Another peer, Wolf Minerals Limited (ASX:WLF), also operates in the tungsten space, providing a further comparative backdrop for assessing Strategic Minerals' potential market positioning post-MRE release.

The execution record of Strategic Minerals will also be scrutinised as the company approaches the MRE and Economic Sensitivity Analysis release. The management team has expressed confidence in meeting the scheduled timelines, with executive director Mark Burnett highlighting the exemplary performance of the Cornwall Resources team in adhering to the 12-month schedule for project outputs. However, investors should remain cautious, as any delays or failures to meet expectations could adversely affect market sentiment and the company's stock performance. The historical context of the Redmoor Project, combined with the recent drilling and relogging activities, should ideally provide a solid foundation for the upcoming announcements.

A specific risk associated with this announcement is the potential volatility in commodity prices, particularly for tungsten and tin, which could significantly affect the project's economic viability. The Economic Sensitivity Analysis will incorporate new metal price assumptions, but fluctuations in global markets could lead to unexpected outcomes. Additionally, the reliance on government funding, while beneficial, also introduces a layer of bureaucratic risk that could impact project timelines or funding availability in the future.

The next measurable catalyst for Strategic Minerals will be the scheduled release of the MRE and Economic Sensitivity Analysis on March 26, 2026. This event will be accompanied by a webinar hosted by the executive directors, providing a platform for direct engagement with investors and stakeholders. The outcomes of this presentation will be critical in shaping market perceptions and could lead to a revaluation of the company's shares based on the updated resource estimates and economic assessments.

In conclusion, the announcement regarding the upcoming MRE and Economic Sensitivity Analysis for the Redmoor Project is classified as significant due to its potential to materially impact the company's valuation and operational outlook. The incorporation of new data and government support enhances the project's credibility and positions Strategic Minerals favorably within the competitive landscape. However, investors should remain aware of the inherent risks associated with commodity price fluctuations and the need for ongoing funding to support project development. The upcoming release will be a pivotal moment for the company, with the potential to drive shareholder value and influence market sentiment.

Key insights

• ●Upcoming MRE could enhance project valuation.
• ●Government funding mitigates financial risks.
• ●Commodity price volatility remains a concern.

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