Interim report
Page 1
The information contained within this announcement is deemed by the Company to constituteinside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014(‘MAR’) which has been incorporated into UK law by the European Union (Withdrawal) Act2018. 25 September 2026 Strategic Minerals plc(“Strategic Minerals”, the “Group” or the “Company”) Half-Year Report 2026 Strategic Minerals plc (AIM: SML; USOTC: SMCDF), an international mineral exploration andproduction company, is pleased to announce its unaudited interim results for the half yearended 30 June 2026 (“H1 2026” or the “Period”). Financial Highlights • Revenues: US$1,594,000 (H1 2025: US$2,001,000)o Cobre gross margin held at 86% (H1 2025: 86%)o The revenue decline was driven by a temporary fall in purchase volumes fromthe largest buyer in January and February, which have subsequently reverted tolong-term average levels• Loss before tax: US$712,000 (H1 2025: profit before tax: US$568,000)o Includes a non-cash share-based payment charge of US$812,000 (H1 2025: nil)relating to options granted in February 2026. Excluding this charge, profit beforetax would have been US$100,000• Loss after tax: US$995,000 (H1 2025: profit of US$151,000)o Basic and diluted loss per share: US¢0.037 (H1 2025: earnings of US¢0.007)• Investments in development projects: US$1,208,000o Redmoor Project: US$1,119,000o Leigh Creek Copper Mine: US$63,000o Southern Minerals Group: US$26,000• Unrestricted cash at 30 June 2026: US$10,026,000 (31 Dec 2025: US$777,000)• Net assets at 30 June 2026: US$17,549,000 (31 Dec 2025: US$7,104,000)• Gross proceeds of £8.7m raised in two equity fundraisings in January and March 2026to advance the Redmoor Project through a Pre-Feasibility Study Operational Highlights (By Subsidiary) Cornwall Resources ("CRL")Redmoor Tungsten-Copper-Tin Project, Cornwall, UK • Updated JORC (2012) Inferred Mineral Resource Estimate of 17.4Mt @ 0.65%WO₃Eq – a 49% increase in tonnage and Europe’s highest-grade undevelopedtungsten projecto Contained metal up 31% for tungsten (85.8kt WO₃), 30% for copper (76.3kt Cu),55% for tin (29.0kt Sn), and with 3.2Moz of contained silvero Potential mine life increased from 12 to 29 years at the 2020 Scoping Studyproduction rate of 600,000 tons per year• Updated Economic Sensitivity Analysis indicates a Base Case after-tax NPV(8%) ofUS$1.54 billion and IRR of 40% (US$1,200/mtu APT), on indicative pre-productioncapital cost of US$109.7m – preliminary in nature and based on a 100% InferredResource• Metallurgical study increased overall tungsten recovery from 72.0% to 85.8% andconfirmed silver recovery of 58.7% to copper concentrate• Ultra-high-grade drill results from the 2025 programme, including 0.60m @ 18.96%WO₃ (22.09% WO₃Eq) – the highest tungsten-equivalent sample interval ever drilledat Redmoor – and 1.52m @ 7.45% Sn, the highest-grade tin intersection to date• Discovery of a new mineralised structure, the “North Tin Zone”, outside the existingdeposit• Resource infill drilling commenced in March 2026; three holes (CRD042–CRD044)completed in the Period, each intersecting the full thickness of the Sheeted VeinSystemo Post-Period end, planning permission granted for the largest continuousdiamond drilling programme undertaken from surface in Cornwall this century:22,500m, with three rigs now operating and completion targeted for Q2 2027o First infill results confirm high-grade continuity, including 1.03m @ 5.90% WO₃(6.54% WO₃Eq) and a previously unmodelled style of copper-tin mineralisationin the granite roof zone; 5,000m drilled to date, on time and on budget
Page 2
Southern Minerals Group ("SMG")Cobre Magnetite Stockpile, New Mexico, USA • Revenues of US$1,594,000 (H1 2025: US$2,001,000), generating segment profitbefore tax of US$701,000• The revenue decline was driven by a temporary fall in purchase volumes from thelargest buyer in January and February, which has subsequently reverted to long-termaverage levels• Investment in new equipment, including a Caterpillar D6 bulldozer, to supportinfrastructure works and reduce reliance on equipment rentals• Post-Period end, access to the Cobre stockpile extended by a further two years to 31March 2031 Leigh Creek Copper Mine ("LCCM")Leigh Creek Copper Project, South Australia • Call option exercised by Cuprum Metals in December 2025• Post-Period end, Definitive Agreement signed in September 2026 for the sale of LeighCreek Copper Mine, subject to conditions including Australian FIRB approval.Consideration comprises:o A$750,000 in cash (of which A$500,000 is held in escrow pending FIRBapproval)o Shares equivalent to up to 19.9% of a new entity intended to be listed, targetinga value of A$3.0mo A 2% Net Smelter Royalty on the first 24,900 tonnes of copper production(subject to a 1% buy-out option for A$1.5m)o Earn-out of 20% of half-yearly Operating Cash Flows, up to A$4.0m, fromcommencement of commercial production Corporate• Luke Rogers was appointed as an independent Non-Executive Director in June 2026• Awarded “Exploration Discovery of the Year” and “Finance Deal of the Year” at the UKMining Conference in June 2026 Charles Manners, Executive Chair, commented: “In H1 2026 Strategic Minerals moved the Redmoor project decisively into its next phase. Anupdated Inferred Mineral Resource Estimate 49% larger than before, materially improvedmetallurgy and a base case NPV of US$1.54 billion have now put Redmoor firmly on the mapas Europe’s highest-grade undeveloped tungsten project. With £8.7m of cash raised in thefirst quarter, the Company is now fully funded to deliver the largest drilling programme inCornwall this century and substantially funded to take Redmoor through pre-feasibility,backed by the cash flow from Cobre and the sale of Leigh Creek. Against a backdrop ofrecord tungsten prices and with growing emphasis on security of supply, our strategy isfocused on delivering Redmoor into production as quickly as possible.” For further information, please contact: Strategic Minerals plc +44 (0) 207 389 7067Mark Burnett Executive Director Website:www.strategicminerals.netEmail: info@strategicminerals.net Follow Strategic Minerals on: X: @StrategicMnrlsLinkedIn:https://www.linkedin.com/company/strategic-minerals-plc SP Angel Corporate Finance LLP +44 (0) 20 3470 0470Nominated Adviser and Broker Matthew Johnson/Charlie Bouverat/Grant Barker Zeus Capital LimitedJoint BrokerHarry Ansell/Katy Mitchell +44 (0) 203 829 5000 Vigo Consulting +44 (0) 207 390 0234Investor Relations Ben Simons/George Pope Email: strategicminerals@vigoconsulting.com Notes to Editors About Strategic Minerals plc and Cornwall Resources LimitedStrategic Minerals plc (AIM: SML; USOTC: SMCDY) is an AIM-quoted, producing mineralscompany, actively developing strategic projects in the UK, United States and Australia. In 2019, the Company completed the 100% acquisition of Cornwall Resources Limited andthe Redmoor Tungsten-Copper-Tin Project.
Page 3
The Redmoor Project is situated within the historically significant Tamar Valley Mining Districtin Cornwall, United Kingdom, with a JORC (2012) Compliant Inferred Mineral ResourceEstimate published 26 March 2026: ResourcecategoryDomainTonnage(Mt) NSR(US$/t) WO3 Eqgrade(%) WO3 grade(%) Sngrade(%) Cugrade(%) Aggrade(g/t) Inferred TungstenHGDs 7.30 499 0.98 0.83 0.12 0.53 7.0 Tin HGDs1.95 208 0.44 0.14 0.50 0.50 7.6Cu DomainSVS 8.02 196 0.40 0.28 0.13 0.34 4.3 Low GradeSVS 0.12 125 0.25 0.17 0.10 0.16 2.7 Total Inferred 17.40 324 0.65 0.49 0.17 0.44 5.8Total MineralResources 17.40 324 0.65 0.49 0.17 0.44 5.8 The preceding statement of Mineral Resources conforms to the Australasian Codefor Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORCCode) 2012 Edition. All tonnages reported are dry metric tonnes. Minordiscrepancies may occur due to rounding to appropriate significant figures. More information on Cornwall Resources can be found at:https://www.cornwallresources.com In September 2011, Strategic Minerals acquired the distribution rights to the Cobre magnetiteproject in New Mexico, USA, through its wholly owned subsidiary Southern Minerals Group. Cobre has been in production since 2012 and continues to provide a sustainable revenuestream for the Company. In March 2018, the Company completed the acquisition of the Leigh Creek Copper Minesituated in the copper rich belt of South Australia. In September 2026, the Company agreeda final sale of Leigh Creek Copper Mine to South Pacific Mineral Investments Pty Ltd tradingas Cuprum Metals providing upfront cash with ongoing copper exposure through layeredconsideration comprising shares, royalties and earn-out. Proceeds will be utilised to furtheradvance the flagship Redmoor Project. CHAIRMAN’S STATEMENT Introduction In H1 2026 Strategic Minerals moved the Redmoor Tungsten-Copper-Tin Project in Cornwall(“Redmoor”) from a successful first drilling campaign into the pre-feasibility phase. The resultsof the drilling programme, which completed in March 2026, produced an updated InferredMineral Resource Estimate 49% larger than its predecessor and an Economic SensitivityAnalysis with a Base Case after-tax NPV(8%) of US$1.54 billion. Strong investor demand,including a subscription led by a prominent international investor, enabled the Company toraise £8.7m in the first quarter, funding a 22,500m infill and upgrade drilling programme that isnow the largest of its kind in Cornwall this century. The Cobre magnetite operation in NewMexico continues to provide a very valuable and reliable cash-generating base for the Group. Financial Results The Cobre magnetite operation in New Mexico is the current revenue generator in the Group.Revenues in the Period were US$1,594,000 (H1 2025: US$2,001,000), a decrease of 20%,The revenue decline was driven by a temporary fall in purchase volumes from the largestbuyer in January and February, which have subsequently reverted to long-term averagelevels. Gross margin was maintained at 86% and Cobre contributed a segment profit before tax ofUS$701,000. The Group moved into a substantially larger operating phase at Redmoor, with an expandedtechnical team and site facilities, and Group overhead expenses increased to US$1,189,000(H1 2025: US$949,000). In addition, a non-cash share-based payment charge of US$812,000was recognised in respect of the 88,675,000 options granted in February 2026 to CornwallResources employees, Directors and advisers, which vest over two years. As a result, the Group recorded a loss before tax of US$712,000 (H1 2025: profit ofUS$568,000) and a loss after tax of US$995,000 (H1 2025: profit of US$151,000). Excludingthe non-cash share-based payment charge, the Group would have reported a profit before taxof US$100,000. We remain committed to keeping Board costs lean while deploying capitalinto Redmoor, evidenced by an 18% reduction in head office overhead versus H1 2025. Bolstered by two equity fundraisings – £4.0m raised at 1.3 pence per share in January and£4.7m raised at 3.5 pence per share in March – the Company ended the Period withUS$10,026,000 of cash (31 December 2025: US$777,000) and net assets of US$17,549,000(31 December 2025: US$7,104,000). During the Period US$1,119,000 was invested inexploration and evaluation at Redmoor (H1 2025: US$378,000). The Directors consider the Group to be fully funded for all planned activities for more than 12months from the date of this report, including the Redmoor infill drilling programme andsubstantially through the Prefeasibility Study. Cornwall Resources Limited (“CRL”) Redmoor Tungsten-Copper-Tin Project, Cornwall, UK (“Redmoor”) Results from the 2025 drilling programme - The 5,048.7m drilled at Redmoor betweenJune and December 2025 continued to deliver in the Period. Assay results from Pads 2 and 3confirmed Sheeted Vein System (“SVS”) mineralisation within the previously untested
Page 4
Exploration Target. In March, hole CRD039 returned 0.60m @ 18.96% WO₃, 2.76% Sn and3.19% Cu (22.09% WO₃Eq), the highest tungsten-equivalent sample interval ever drilled atRedmoor, together with 1.52m @ 7.45% Sn, the highest-grade tin intersection at the project.In February, the Company confirmed the discovery of a new, laterally continuous tin-dominantstructure north of the SVS, the North Tin Zone. Re-analysis of 428 historical pulp samplesusing a more appropriate method for tin in cassiterite showed higher tin grades in 78% ofsamples, and further analysis of CRD041 core in June identified additional tin-rich structuresoutside the modelled resource, including 1.00m @ 0.67% Sn. Metallurgy - In March, a metallurgical study increased overall tungsten recovery from 72.0%to 85.8%, a 19.2% relative improvement, and demonstrated for the first time that silver isrecoverable to the copper concentrate (58.7% recovery at 270g/t). Tin and copper recoverieswere broadly unchanged at 67.2% and 82.4% respectively, with further improvementsidentified for the Pre-Feasibility Study. Mineral Resource Estimate and economics - On 26 March 2026 the Company publishedan updated JORC (2012) Inferred Mineral Resource Estimate of 17.4Mt @ 0.65% WO₃Eq(0.49% WO₃, 0.17% Sn, 0.44% Cu, 5.8g/t Ag), representing a 49% increase in tonnagecompared with the 2019 estimate. Contained metal increased by 31% for tungsten, 55% fortin and 30% for copper, and the potential mine life at the 2020 Scoping Study production rateincreased from 12 to 29 years. An Exploration Target of 1.8–3.4Mt has also been identifiedoutside the current resource. At 0.49% WO₃, Redmoor is Europe’s highest-gradeundeveloped tungsten project compared with other CRIRSCO-compliant projects. The accompanying Economic Sensitivity Analysis, prepared by Snowden Optiro, updates the2020 Scoping Study for the new resource, metallurgy, cost inflation and metal prices.Indicative pre-production capital cost is US$109.7m. After-tax results by scenario were: • Base Case (US$1,200/mtu APT): NPV(8%) of US$1.54 billion, IRR 40%• Upside Case (US$1,800/mtu APT): NPV(8%) of US$2.71 billion, IRR 55% Cautionary Note on updated Economic Sensitivity Analysis:The economic sensitivity analysis is based on the 2020 Scoping Study and updated inputs and is preliminary innature. It is based on a Mineral Resource that is 100% Inferred and is insufficient to support the estimation of OreReserves or to demonstrate economic viability or provide assurance of an economic development case at thisstage. There is no certainty that the results of the Economic Sensitivity Analysis will be realised. Infill drilling for pre-feasibility - Following the January fundraising, CRL signed a drillingcontract with Priority Drilling UK Ltd in March and commenced resource infill drilling on 28March. The programme is designed to convert Inferred Mineral Resources to Indicated, andto underpin a maiden Ore Reserve for Redmoor, subject to completion of the Pre-FeasibilityStudy. Three holes were completed in the Period: CRD042 (464.4m, completed 6 May),CRD043 (approximately 500m, completed 2 June) and CRD044 (526.1m, completed 25June), each of which intersected the full thickness of the SVS. CRD044 also intersected theKit Hill granite at depth, with a mineralised granite roof zone. Historical core relogging andsampling continued throughout the Period, supported by the purchase of a core saw toaccelerate sample preparation, and ore sorting amenability testwork was carried out withTOMRA. Following the March subscription, the planned programme was expanded to 22,500m acrossat least 44 drillholes, including infill of the entire resource and upgrade drilling of theExploration Target. Post-Period end, in July, Cornwall Council granted planning permission forthe expanded programme – which the Company believes is the largest continuous diamonddrilling programme undertaken from surface in Cornwall, and in Great Britain, this century –and by August two additional rigs from Priority Drilling had been mobilised, giving a three-rigprogramme across seven permitted drill pads with completion targeted in Q2 2027. On 14September the Company reported the first infill results, which confirmed the structural andgrade continuity of the SVS, including 1.03m @ 5.90% WO₃ (6.54% WO₃Eq) in CRD042 and1.00m @ 6.00% WO₃ (6.39% WO₃Eq) in CRD043, and identified a previously unmodelledstyle of copper-tin mineralisation in aplitic bodies within the granite roof zone. By 17September more than 5,000m had been drilled across nine drillholes, on time and withinbudget, with more than 17,500m remaining. Alfred H Knight has been contracted to deliver the feasibility-stage metallurgical testworkprogramme, supported by TOMRA for ore sorting trials, and geotechnical testwork anddownhole geophysical surveys have been procured. CRL now has 16 staff on site, with additional warehouse space acquired for core storage. InJune, CRL won “Exploration Discovery of the Year” and “Finance Deal of the Year” at the UKMining Conference, and in March CRL hosted the Minister for Small Business and EconomicTransformation at Redmoor. Southern Minerals Group LLC (“SMG”) Cobre magnetite stockpile, New Mexico, USA Cobre continued to generate positive cash flow, with revenues of US$1,594,000 in H1 2026(H1 2025: US$2,001,000). The revenue decline was driven by a temporary fall in purchasevolumes from the single largest buyer in January and February, which have subsequentlyreverted to long-term average levels. In June, the Company announced a substantial investment in new equipment, including aCaterpillar D6 bulldozer, reinforcing its long-term commitment to the site while improving year-round capability and reducing reliance on rented equipment. Post-Period end, SMG agreed afurther two-year extension of its access to the Cobre stockpile, from 31 March 2029 to 31March 2031, providing greater certainty over an important source of internal cash flow. Leigh Creek Copper Mine Pty Ltd (“LCCM”) Leigh Creek Copper Project In December 2025, Cuprum Metals (“Cuprum”) exercised its call option to acquire 100% ofLCCM, and A$250,000 had been received by the Company in respect of the option and firstinstalment. The transaction timetable was extended by three months in June while Cuprumprogressed funding. On 3 September 2026, following the Period end, the parties signed aDefinitive Agreement, with completion subject to conditions including Australian ForeignInvestment Review Board approval. With copper prices at all-time highs and forecast projecteconomics improving, the Company agreed a lower upfront cash payment in return for a Net
Page 5
Smelter Royalty, giving continued exposure to future cash flows. Final considerationcomprises A$750,000 in cash (A$500,000 of which is held in escrow pending FIRB approval);shares equivalent to up to 19.9% of a new entity intended to be listed, targeting a value ofA$3.0m (any shortfall to be added to the earn-out); a 2% Net Smelter Royalty on the first24,900 tonnes of copper production, with a 1% buy-out option for Cuprum on payment ofA$1.5m; and an earn-out equal to 20% of half-yearly Operating Cash Flows, up to A$4.0m,from commencement of commercial production. All proceeds will be used to supportRedmoor. The result of LCCM continues to be presented as a discontinued operation, with aloss of US$53,000 in the Period (H1 2025: US$38,000). Board Changes and Share Options In June 2026, Luke Rogers was appointed as an independent Non-Executive Director. Lukehas over 15 years’ experience as a mining executive and engineer focused on critical andstrategic minerals, is Technical Director at Balta SA, has held senior positions at Aterian PLCand TechMet Ltd, and is an elected Cornwall Councillor. The Board believes his combinationof technical experience and local knowledge is well suited to the next phase at Redmoor, andappropriate arrangements are in place to manage any potential conflicts arising from hisCouncil role. All resolutions were passed at the Annual General Meeting on 24 June 2026. In February 2026 the Company granted 88,675,000 options at an exercise price of 3.5 pence,and post-Period end, in August 2026, granted a further 13,150,000 options at 4 pence, ineach case to key CRL employees, Directors and (in February) advisers, vesting over twoyears, in recognition of progress and to support retention of key personnel as Redmooradvances towards development. Safety The Company maintains a strong safety culture across all operations. I am pleased to reportthat no significant safety incidents were recorded during the reporting period. Outlook Our overarching strategy is to grow the Company’s value by unlocking the significant potentialof the Redmoor Project, using sustainable cash flows from Cobre and non-dilutive proceedsfrom the sale of Leigh Creek. With Redmoor now funded through the Pre-Feasibility Study,the priorities for the remainder of 2026 and into 2027 are the delivery of the 22,500m drillingprogramme, the associated metallurgical, geotechnical and hydrogeological testwork, and thecompletion of a further Mineral Resource Estimate update, aimed at Indicated classification.The market backdrop supports this focus: in its update of 17 September the Company notedthat the six- and twelve-month average APT prices of US$2,960/mtu and US$1,930/mturespectively were both above the US$1,800/mtu Upside Case in our Economic SensitivityAnalysis. With continued supply constraints, Chinese export restrictions and a growingemphasis on security of supply for defence and high-technology applications, the strategicvalue of a high-grade tungsten source in the UK is reinforced. Redmoor has the potential tobecome a leading source of critical and strategic minerals for western world supply chains,and we remain very focused on accelerating its development to unlock its true value. Charles MannersExecutive Chair24 September 2026 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 6 months to30 June2026(Unaudited) 6 months to30 June2025(Unaudited) Year to31 December2025(Audited) $’000 $’000 $’000 Continuing operations Revenue 1,594 2,001 4,231Raw materials and consumables used.(222) (278) (618) _________ _________ _________ Gross profit 1,372 1,723 3,613 Other income 53 36 -Overhead expenses (1,189) (949) (2,440)Amortisation (116) (194) (363)Depreciation (20) (12) (44)Interest - - (1)Share based payment (812) - -Foreign exchange gain/(loss) 22 (13) (62) _________ _________ _________ (Loss)/profit from operations (690) 591 703 Lease Interest (22) (23) (47) ___________________________ (Loss)/profit before taxation (712) 568 656 Income tax (expense)/credit (230) (379) (615) ___________________________ (Loss)/profit from continuing operations(942) 189 41
Page 6
___________________________ Loss from discontinued operations (53) (38) (189) ___________________________(loss)/profit for the period attributable to: Owners of the parent (995) 151 (148) ___________________________ Other comprehensive income Exchange gains/(losses) arising on translationof foreign operations (443) 431 363 _________ _________ _________ Total comprehensive (loss)/income attributable to: Owners of the parent (1,483) 582 215 ___________________________ Profit/ (loss) per share attributable to the ordinary equity holders of the parent:Basic and diluted – total operations¢0.004 ¢0.007 ¢0.007Basic and diluted – continuing operations¢0.004 ¢0.009 ¢0.002Basic and diluted – discontinued operations(¢0.002) (¢0.002) (¢0.008) CONSOLIDATED STATEMENT OF FINANCIAL POSITION 6 months to30 June2026(Unaudited) 6 months to30 June2025(Unaudited) Year to31 December2025(Audited) $’000 $’000 $’000Assets Non-current assets Intangible Asset - - -Deferred Exploration and evaluation costs8,571 6,757 7,572Other Receivables - - -Property, plant and equipment 107 107 101Right of Use Assets 1,241 852 810 ___________________________ 9,919 7,716 8,483 ___________________________Current assets Inventories 4 4 4Trade and other receivables 589 308 384Assets held for sale 143 134 134Prepayments 62 46 78Cash and cash equivalents 10,026 1,532 777 ___________________________ 10,824 2,024 1,377 ___________________________Total Assets 20,743 9,740 9,680 ___________________________ Equity and liabilities Share capital 3,982 3,362 3,388Share premium reserve 60,772 50,172 50,283Share options reserve 1,360 5 560Merger reserve 21,300 21,300 21,300Foreign exchange reserve (1,296) (785) (853)Other reserves (23,023) (23,023) (23,023)Accumulated loss (45,546) (44,252) (44,551) ___________________________Total Equity 17,549 6,779 7,104 ___________________________Liabilities Non-Current Liabilities Lease Liabilities 926 630 627Provisions 208 270 208 ___________________________ 1,134 900 835 ___________________________Current liabilities Liabilities held for sale 1,202 1,156 1,169Income Tax Payable 187 319 124Trade and other payables 289 318 394Lease Liabilities 382 268 234 ___________________________ 2,060 2,061 1,921 ___________________________Total Liabilities 3,194 2,961 2,756 ___________________________ Total Equity and Liabilities 20,743 9,740 9,860 ___________________________ CONSOLIDATED STATEMENT OF CASH FLOW 6 months to30 June 6 months to30 June Year to31 December
Page 7
2026(Unaudited) 2025(Unaudited) 2025(Audited) $’000 $’000 $’000 Cash flows from operating activities Profit/ (loss) after tax (994) 151 (148) Adjustments for: Depreciation of property, plant, and equipment 20 12 22 Amortisation of Right of Use asset 116 194 381 Impairment charge 53 38 189 Income Tax expense 230 379 615 Lease Interest 22 23 47 (Increase) / decrease in trade and other receivables(175) (13) (89) (Increase) / decrease in prepayments (14) (10) (42) Decrease / (increase) in trade and other payables(98) 76 152 Increase /(decrease) in prepaid income tax- - - Income tax paid (167) (475) (968) Share based payment expense 812 - 549 Foreign exchange movements (105) 13 9 ___________________________ Net cash flows from operating activities(300) 388 717 ___________________________ Investing activities Net cash used in discontinued operations(63) (38) (189) Purchase pf plant and equipment (26) (64) (61) Purchase of exploration and evaluation assets(1,119) (378) (1,289) ___________________________ Net cash used in investing activities(1,208) (480) (1,539) ___________________________ Financing activities Net proceeds from issue of equity share capital 11,083 1,231 1,374 Lease Payments (122) (231) (426) ___________________________ Net cash from financing activities 10,961 1,000 948 ___________________________ Net increase in cash and cash equivalents9,453 908 126 Cash and cash equivalents at beginning of period777 621 621Exchange (losses) / gains on cash and cashequivalents (204) 3 30 ___________________________ Cash and cash equivalents at end of period10,026 1,532 777 ___________________________
Page 9
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Sharecapital Sharepremiumreserve MergerReserve WarrantReserve Shareoptionsreserve Initial Re-structureReserve ForeignExch.reserve Re $’000 $’000 $’000 $’000 $’000 $’000 $’000 Balance at 31 December 20242,916 49,387 21,300 5 - (23,023)(1,216)( _________________________________________________ _ Profit for the year - - - - - - -Foreign exchange translation - - - - - - 363 ________Total comprehensive income/(loss) for the year- - - - - - 363 Issue of share capital 472 891 - - - - -Exercise of warrants - 5 - (5) - - -Issue of options - - - 560 - - - __________________________________________________Balance at 31 December 20253,388 50,283 21,300 560 - (23,023) (853) ( Profit for the period - - - - - - -Foreign exchange translation - - - - - - (443) ________Total comprehensive income for the year- - - - - - (443) Shares issued in the period 594 10,489 - - - - -Share issue costs - - - - - - -Issue of options - - - 800 - - - __________________________________________________Balance at 30 June 2026 3,982 60,772 21,300 1,360 - (23,023)(1,296)( __________________________________________________ All comprehensive income is attributable to the owners of the parent Company.
Page 11
NOTES FORMING PART OF THE CONSOLIDATED INTERIM FINANCIALSTATEMENTS 1. General Information Strategic Minerals Plc (“the Company”) is a public company incorporated in England and Wales. The consolidated interim financial statements of the Company for the six months ended 30 June2026 comprise the Company and its subsidiaries (together referred to as the “Group”). 2. Significant accounting policies Basis of preparation In preparing these financial statements the presentational currency is US dollars. As the entiregroup’s revenues and majority of its costs, assets and liabilities are denominated in US dollars it isconsidered appropriate to report in this currency. The principal accounting policies adopted in the preparation of the financial statements are set outbelow. The policies have been consistently applied to all the years presented, unless otherwisestated. These financial statements have been prepared in accordance with International FinancialStandards and UK adopted international accounting standards in conformity with the requirementsof the Companies Act 2006. The preparation of financial statements in compliance with adopted IFRS requires the use ofcertain critical accounting estimates. It also requires Group management to exercise judgment inapplying the Group's accounting policies. The areas where significant judgments and estimateshave been made in preparing the financial statements and their effect are disclosed in note 2. The financial statements have been prepared on a historical cost basis, except for the acquisitionof LCCM and the valuation of certain investments which have been measured at fair value, nothistorical cost. Going concern basis The Directors have considered the Company’s and Group’s ability to continue as a going concernthrough review of cash flow forecasts prepared by management for a period of 12 months from thedate of signing this report and a review of the key assumptions on which these are based andsensitivity analysis. In January and March 2026, the Company raised gross proceeds of approximately £8.7m (approx.$12.0m) principally to advance the Redmoor Project through a Pre-Feasibility Study. As a result,the Group is fully funded for all planned activities for a period in excess of 12 months from the dateof signing this report, and therefore the Directors do not consider there to be any going concernissues. Consequently, the financial statements have been prepared on a going concern basis. New standards, interpretations, and amendments effective 1 July 2026: There are a number of standards, amendments to standards, and interpretations which have beenissued by the IASB that are effective in future accounting periods and which have not beenadopted early. 3. Critical accounting estimates and judgements The Group makes certain estimates and assumptions regarding the future. Estimates andjudgements are continually evaluated based on historical experience and other factors, includingexpectations of future events that are believed to be reasonable under the circumstances. In thefuture, actual experience may differ from these estimates and assumptions. The estimates andassumptions that have a significant risk of causing a material adjustment to the carrying amountsof assets and liabilities within the next financial year are discussed below. Estimates (a) Carrying value of intangible assets Management assesses the carrying value of the exploration and evaluation assets forindicators of impairment based on the requirements of IFRS 6 which are inherentlyjudgemental. This includes ensuring the Group maintains legal title, assessment regarding thecommerciality of reserves and the clear intention and financial ability to move the asset forwardto development. i) The Redmoor Project is an early-stage exploration projects and therefore managementhave applied judgement in the period as to whether the results from exploration activityprovide sufficient evidence to continue to move the asset forward to development. There areno indicators of impairment for the Redmoor Project in the period to 30 June 2026. ii) The intangible asset associated with the offtake agreement for the LCCM project wasimpaired to nil at 31 December 2023. There has been no change to this assessment in theperiod to 30 June 2026. (b) Share based payments The fair value of share-based payments recognised in the statement of comprehensiveincome is measured by use of the Black Scholes model after taking into account market-based vesting conditions and conditions attached to the vesting and exercise of the equityinstruments. The expected life used in the model is adjusted based on management’s bestestimate, for the effects of non-transferability, exercise restrictions and behaviouralconsiderations. The share price volatility percentage factor used in the calculation is basedon management’s best estimate of future share price behaviour based on past experience. (c) Carrying value of amounts owed by subsidiary undertakings. IFRS9 requires the parent company to make certain assumptions when implementing theforward- looking expected credit loss model. This model is required to be used to assess theintercompany loan receivables from its subsidiaries for impairment. Arriving at an expectedcredit loss allowance involved considering different scenarios for the recovery of theintercompany loan receivables, the possible credit losses that could arise and probabilitiesfor these scenarios. The following were considered: the exploration project risk, the future sales potential ofproduct, value of potential reserves and the resulting expected economic outcomes of the
Page 12
project. (d) Carrying Value of Development Assets Management assesses the carrying value of development assets for indicators ofimpairment based on the requirements of IAS36 which are inherently judgemental. The following are the key assumptions used in this assessment of Carrying value. i) Mineable reserves over life of project ii) Forecasted Copper pricing iii) Capital and operating cost assumptions to deliver the mining schedule iv) Foreign exchange rates v) Discount rate vi) Estimated project commencement date. If the carrying amount of the Development asset exceeds the recoverable amount, the assetis impaired. The Group will reduce the carrying amount of the asset to its recoverableamount and recognise an impairment loss. The assessment is carried out twice per year –end of half year reporting period and end of annual reporting period. (e) Determination of incremental borrowing rate for leases Under IFRS 16, where the interest rate implicit in the lease cannot be readily determined theincremental borrowing rate is used. The incremental borrowing rate is defined as the rate ofinterest that a lessee would have to pay to borrow, over a similar term and with a similarsecurity, the funds necessary to obtain an asset of a similar value to the cost of the right-of-use asset in a similar economic environment. Judgements (a) Investments in subsidiaries Investment in subsidiaries comprises of the cost of acquiring the shares in subsidiaries. If an impairment trigger is identified and investments in subsidiaries are tested forimpairment, estimates are used to determine the expected net return on investment. Theestimated return on investment takes into account the underlying economic factors in thebusiness of the Company’s subsidiaries including estimated recoverable reserves, resourcesprices, capital investment requirements, and discount rates among other things. (b) Contingent consideration as part of Asset acquisition Judgement was required in determining the accounting for the contingent considerationpayable as per of the CRL acquisition. The group has an obligation to pay A$1m on netsmelter sales arising from CRL production reaching A$50m and a further A$1m on netsmelter sales arising from CRL production reaching A$100m. Whilst a possible obligation exists in relation to the consideration payable, given the earlystage of the project it was concluded that at reporting date it is not probable that an outflowof resources embodying economic benefits will be required to settle the obligation 4. Segment information The Group has four main segments during the period: Southern Minerals Group LLC (SMG) - This segment is involved in the sale of magnetite toboth the US domestic market and historically transported magnetite to port for onward exportsale. Head Office - This segment incurs all the administrative costs of central operations andfinances the Group’s operations. A management fee is charged for completing this service andother certain services and expenses. Development Asset – This segment holds the Leigh Creek Copper Mine Development Asset inAustralia and incurs all related operating costs. United Kingdom - The investment in the Redmoor project in Cornwall, United Kingdom is heldby this segment. Factors that management used to identify the Group's reportable segments. The Group's reportable segments are strategic business units that carry out different functions andoperations and operate in different jurisdictions. Operating segments are reported in a manner consistent with the internal reporting provided to thechief operating decision-maker. The chief operating decision maker has been identified as theboard and management team which includes the Board and the Chief Financial Officer. Measurement of operating segment profit or loss, assets, and liabilities The Group evaluates segmental performance on the basis of profit or loss from operationscalculated in accordance with International Accounting Standards. Segment assets exclude tax assets and assets used primarily for corporate purposes. Segmentliabilities exclude tax liabilities. Loans and borrowings are allocated to the segments in which theborrowings are held. Details are provided in the reconciliation from segment assets and liabilities tothe Group’s statement of financial position. 6 Months to 30 June 2026(Unaudited) SMG HeadOfficeUnitedKingdomDevelopmentAsset IntraSegmentEliminationTotal $'000 $'000 $’000 $’000 $’000 $'000 Revenues 1,594 - - - - 1,594 _____________________ _____________________Gross profit 1,594 - - - - 1,594
Page 13
Rawmaterials/consumables(222) - - - - (222)Overhead expenses(513) (335) (289) - - (1,137)Amortisation (116) - - - - (116)Impairment - - - - -Depreciation (20) - - - - (20)Share based payments (812) (812)Foreign exchangegain/(loss) - 18 4 1 - 23 _____________________ _____________________ Segment profit /(loss) fromoperations 723 (1,129) (285) 1 - (690) _____________________ _____________________ Lease Interest (22) - (22) _____________________ _____________________Segment profit /(loss)before taxation 701 (1,129) (285) 1 - (712) _____________________ _____________________ Year to 31 December 2025(Audited) SMG HeadOffice UnitedKingdomDevelopmentAsset IntraSegmentEliminationTotal $'000 $'000 $’000 $’000 $’000$'000 Revenues 4,231 - - - - 4,231 __________________________________________Gross profit 4,231 - - - - 4,231 Rawmaterials/consumables(618) - - - - (618)Overhead expenses(901) (1,485) (214) - - (2,600)Management feeincome/(expense) (100) 260 - - - 160Amortisation (363) - - - - (363)Impairment - - - - - -Depreciation (36) - (8) - - (44)Interest - - (1) - - (1)Foreign exchangegain/(loss) - (51) (5) (6) - (62) __________________________________________ Segment profit /(loss) fromoperations 2,213(1,276) (228) (6) - 703 __________________________________________ Lease Interest (47) - - - - (47) __________________________________________Segment profit /(loss)before taxation 2,166(1,276) (228) (6) - 656 __________________________________________ 6 months to 30 June2025(Unaudited) SMG HeadOfficeUnitedKingdomDevelopmentAsset IntraSegmentEliminationTotal $'000 $'000 $’000 $’000 $’000 $'000 Revenues 2,001 - - - - 2,001 _______ _______ _______ _______ _______ _______Total Revenue 2,001 - - - - 2,001 Other Revenue - - 36 - - -RawMaterials/Consumables(278) - - - - (278)Overhead expenses(440) (409) (100) - - (949)Amortisation- right of useasset (194) - - - - (194)Interest - - - - - -Depreciation (12) - - - - (12)Foreign exchangegain/(loss) - (13) - - - (13) __________________________________________ Segment profit /(loss)from operations 1,077 (422) (64) (38) - 553 _______ _______ _______ _______ _______ _______ Lease Interest (23) - - - - (23) __________________________________________ Segment profit /(loss)before taxation 1,054 (422) (64) (38) - 530 _______ _______ _______ _______ _______ _______ As at 30 June 2026(Unaudited) SMG HeadOffice UnitedKingdomDevelopmentAsset Total $'000 $'000 $’000 $’000 $'000
Page 14
Additions to non-currentassets - - 1,119 - 1,119 _______ _______ _______ ______ _______ Reportable segment assets1,944 9,839 8,817 143 20,743 _______ _______ _______ ______ _______ Reportable segment liabilities1,691 159 142 1,202 3,194 _______ _______ _______ _______ _______ As at 30 June 2025(Unaudited) SMG HeadOffice UnitedKingdomDevelopmentAsset Total $'000 $'000 $’000 $’000 $'000 Additions to non-currentassets 64 - 378 - 442 _______ _______ _______ ______ _______ Reportable segment assets1,443 1,321 6,844 132 9,740 _______ _______ _______ ______ _______ Reportable segment liabilities1,533 142 130 1,156 2,961 _______ _______ _______ _______ _______ As at 31 December 2025(Audited) SMG HeadOffice UnitedKingdomDevelopmentAsset Total $'000 $'000 $’000 $’000 $'000 Additions to non-currentassets - - 1,287 - 1,287 ___________________________________ Reportable segment assets1,258 455 8,013 134 9,860 ___________________________________ Reportable segment liabilities1,186 149 252 1,169 2,756 ___________________________________ External revenue bylocation of customersNon-current assets bylocation of assets 30 June2026 30 June2025 30 June2026 30 June2025 $'000 $'000 $’000 $’000 UnitedStates 1,594 2,001 1,321 949UnitedKingdom - - 8,598 6,767Australia - - - - ____________________________ 1,594 2,001 - 7,716 ____________________________ Revenues by key customers Revenues from Customer A totalled $257,772 (H1 2025: $281,740 ), which represented 16% (H12025: 14%) of total domestic sales in the United States, Customer B totalled $529,743 (H1 2025:$907,679) which represented 33% (H1 2025: 45%) Customer C totalled $474,074 (H1 2025:$633,012 which represented 30% (H1 2025: 32%), and Customer D totalled $301,413 (H1 2025:$184,547) which represented 19% (H1 2025: 9%). 5. Operating Loss 6 months to30 June2026(Unaudited) 6 months to30 June2025(Unaudited) Year to31 December2025(Audited) $'000 $'000 $’000 Operating gain/loss is stated aftercharging/(crediting): Directors’ fees and emoluments 114 155 301Equipment rental 37 - 2 Equipment maintenance 28 - 106Fees payable to the company’s auditor for the - - 99audit of the parent company and consolidated financialstatements Non- Audit Services - - -Salaries, wages, and other staff related costs 300 330 525Legal, professional and consultancy fees259 244 456Travel and related costs 13 - 43Other Expenses 438 220 359 _______ _______ _______Overhead Expenses 1,189 949 1,891 _______ _______ _______ Lease Interest 22 23 47Interest - - 1Finance Fee -Foreign exchange (22) 13 62
Page 15
Amortisation of Right of use assets 116 194 363Depreciation 20 12 44Share based payments 812 - 549Discontinued operations 53 38 189 _______ _______ _______Total 1,190 1,229 3,146 _______ _______ _______ 6. Intangible assets – exploration and evaluation costs 6 months to30 June2026(Unaudited) 6 months to30 June2025(Unaudited) Year to31 December2025(Audited) $'000 $'000 $’000 Cost Opening balance for the period 8,694 5,901 7,023 Additions for the period 1,119 378 2,101Grant Reimbursement - - (791)Research & development refund - - (23)Foreign exchange difference (120) 478 (384 _______ _______ _______ Closing balance for period 9,693 6,757 8,694 _______ _______ _______ 7. Property, plant and equipment Development AssetPlant and MachineryTotal $'000 $'000 $’000Cost At 1 January 2025 (audited) - 402 402 Additions - 63 63Foreign exchange difference - (11) (11) _______ ________________At 31 December 2025 (audited) - 454 454 _______ ________________Additions - 26 26Foreign exchange difference - 1 1 _______ ________________At 30 June 2026 (unaudited) - 481 481 ________ ________________Depreciation At 1 January 2025 (audited) - (342) (342) ________ ________________Charge for the period - depreciation- (22) (22)Foreign exchange difference - 11 11 ________ ________________At 31 December 2025 (audited) - (353) (353) ________ ________________Charge for the period - depreciation- (19) (19)Foreign exchange difference - (2) (2) ________ ________________At 31 June 2026 (unaudited) - (374) (374) ________ ________________Carrying Value As at 30 June 2026 (audited) - 107 107 ________ ________________As at 31 December 2025 (audited)- 101 101 ________ ________________As at 30 June 2025 (unaudited) - 72 72 ________ ________________ 8. Leases The Group has leases for an office, plant and machinery and a vehicle. Each lease is reflected on thebalance sheet as a right-of-use asset and a lease liability. The Group classifies its right-of-use assets ina consistent manner to its property, plant and equipment. Plant,Machineryand Vehicles Total $'000 $’000 Right of Use Assets $’000 $’000 As at 1 January 2025 (audited) 1,053 1,053 Additions 142 302Amortisation (capitalised) (4) (4)Amortisation (381) (381) ________________ As at 31 Dec 2025 (Audited) 810 810 ________________ Additions 546 546Amortisation (capitalised) (1) (1)Amortisation (114) (114) ________________
Page 16
As at 30 June 2026 (unaudited) 1,241 1,241 ________________ Plant,Machineryand Vehicles Total $'000 $’000 Lease Liabilities As at 1 January 2025 (audited) 1,106 1,106 Additions 132 132Interest Payments 49 49Lease Payments (426) (426) ________________ As at 31 Dec 2025 (audited) 861 861 ________________ Additions 557 557Interest Payments 22 22Lease Payments (132) (132) ________________ As at 30 June 2026 (unaudited) 1,308 1,308 ________________ Lease Liability June2026 June2025 December2025 Current 382 268 234Non-Current 926 630 627 ________ ________ ________ 1,308 898 861 ________ ________ ________ 9. Dividends No dividend is proposed for the period. 10. Earnings per share Earnings per ordinary share have been calculated using the weighted average number of shares inissue during the relevant financial year as provided below. 6 months to30 June2026(Unaudited) 6 months to30 June2025(Unaudited) Year to31 December2025(Audited) $'000 $'000 $’000 Weighted average number of shares - Basic2,811,275,9692,117,253,7502,237,498,862Weighted average number of shares – Diluted2,811,275,9692,117,253,7502,237,498,862 Earnings (loss) for the period $995,000 $151,000 $148,000 Earnings per share in the period - Basic¢0.037 ¢0.007 ¢0.007Earnings per share in the period - Diluted¢0.037 ¢0.007 ¢0.007 11. Share capital and premium 30 June2026 30 June2026 30 June and 31December2025 30 June and 31December2025 No $'000 No $'000 Allotted, called upand fully paid Ordinary shares 2,811,275,969 60,772 2,369,297,949 50,283 ________________________________________________ In January 2026 the Company issued 307,692,308 Ordinary shares of 0.1pence each at a price of1.3 pence per share to raise gross proceeds of approximately £4,000,000. In March 2026 the Company issued 134,285,712 Ordinary shares of 0.1pence each at a price of3.5 pence per share to raise gross proceeds of approximately £4,700,000. Share options and warrants The following Options were in issue during the period: Date of GrantNumber of OptionsExercise price Expiry date
Page 17
12 February 2026 88,675,000 3.5p 12 February 2031 ____________________________________ These options vested in two tranches, 50% vesting 12 months after the date of issue and 50% vesting24 months after the date of issue. The company recognises an expense in relation to the issue ofthese options over the vesting period, with $812,000 being recognised during the period from issuedate to 30 June 2026. 12. Post balance date events On 3 September 2026 the Group entered into a Definitive Agreement relating to the sale of LCCM, withcompletion subject to certain conditions. At the date of this report the proposed transaction has yet tobe completed. The Directors consider that the entering into of the Definitive Agreement does notconstitute an adjusting event for the purposes of IAS 10 and as such no adjustments have been madein these interim financial statements in relation to the carrying value of the Groups investment in LCCMwhich remain classified as assets and liabilities held for sale, with the development asset in LCCMremaining fully impaired. Copies of this interim report will be made available on the Company’s website,www.strategicminerals.net.
Page 18
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary InformationProvider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com orvisit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and toshare such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use thepersonal data you provide us, please see our Privacy Policy. END