strategic minerals plc annual report  2012
for the year ended 31st december
lse smll
wwwstrategicmineralsnet
a y ear 
of delivery
our market is magnetite
for shareholders stakeholders and customers contents
strategic minerals plc annual report 2012
overview
03 our business
04 highlights
05 our strategy
06 executive chairman’s report
09 chief executive officer’s report
12 market review
performance
14 financial review
16 risk management
governance
19 board of directors
20 report of the directors
23 statement of directors’ responsibilities
24 statement of corporate governance 
financial statements  other information
25 report of the auditors
27 consolidated statement of comprehensive income
28 consolidated statement of financial position
29 company statement of financial position
30 consolidated statement of cash flow
31 company statement of cash flow
32 consolidated statement of changes in equity
33 company statement of changes in equity
34 notes to the financial statements
66 corporate information
forwardlooking statement
this annual report contains ‘forwardlooking information’ which may include but is
not limited to statements with respect to the future financial and operating
performance of strategic minerals plc its subsidiaries production and exploration
operations and affiliated companies the future price of magnetiteiron ore the
estimation of mineral resources the realisation of mineral resource estimates costs of
production capital and exploration expenditures costs and timing of the development
of new deposits costs and timing of the development of new mines costs and timing
of future exploration requirements for additional capital governmental regulation of
mining operations and exploration operations stockpile and tailings dam operations
timing and receipt of approvals licenses permits conversions and ongoing approvals
to operate exploration activities stockpile and tailings dam operations under the
united states of america australia and other applicable mineral legislation and
environmental legislation environmental risks title disputes or claims limitations of
insurance coverage and the timing and possible outcome of pending litigation and
regulatory matters
often but not always forwardlooking statements can be identified by the use of
words such as ‘plans’ ‘expects’ ‘is expected’ ‘budget’ ‘scheduled’ ‘estimates’
‘forecasts’ ‘intends’ ‘anticipates’ or ‘believes’ or variations including negative
variations of such words and phrases or state that certain actions events or results
‘may’ ‘could’ ‘would’ ‘might’ or ‘will’ be taken occur or be achieved forward
looking statements involve known and unknown risks uncertainties and other factors
which may cause the actual results performance or achievements of strategic
minerals plc andor its subsidiaries investment assets andor its affiliated companies
to be materially different from any future results performance or achievements
expressed or implied by the forwardlooking statements
such factors include among others general business economic competitive
political and social uncertainties the actual results of current exploration activities
stockpile processingtailings dam operations conclusions of economic evaluations
and studies fluctuations in the value of uk pounds sterling relative to the united
states dollar australian dollar and other foreign currencies changes in project
parameters as plans continue to be refined future prices of magnetiteiron ore
possible variations of ore grade or recovery rates failure of plant logistics providers
equipment or processes to operate as anticipated accidents labour disputes and
other risks of the mining industry political instability insurrection or war the effect of
illness on labour force availability and turnover delays in obtaining governmental
approvals or financing or in the completion of development or construction activities
although strategic minerals plc has attempted to identify important factors that could
cause actual actions events or results to differ materially from those described in
forwardlooking statements there may well be other factors that cause actions events
or results to differ from those currently anticipated estimated or intended
forwardlooking statements contained herein are made as of the date of this annual
report and strategic minerals plc disclaims any obligation to update any forward
looking statements whether as a result of new information future events or results or
otherwise there can be no assurance that forwardlooking statements will prove to be
accurate as actual results and future events could differ materially from those
anticipated in such statements accordingly readers should not place undue reliance
on forwardlooking statements due to the inherent uncertainty therein overview performance governance financial statements
03
our business
strategic minerals plc aim sml usotc smcdy is highly
focused on developing a business centred on bringing into
production magnetite tailings assets located in lowrisk
geopolitical regions strategic minerals currently holds
iron ore stockpile assets in north america and exploration
properties in australia 
strategic minerals plc annual report 2012
hemosillo
ciudad obregón
navojoa
ciudad
cuauhtemoc
nuevo casas
grandes
cananea
agua prieta
caborca
rocky point
tucson
ciudad 
juarez
las cruces
casa grande
san luis  rio
colorado
ensenada
guaymas
mexicali
nogales
cobre stockpile
in 2012 the company commenced production at its first
magnetite operation the cobre stockpile in new mexico
and intends to develop a number of other projects
within the same segment the cobre stockpile has
been assessed to jorc standards and is estimated to
contain over 15 million metric tonnes of magnetite
our strategy is to grow a portfolio of tailings stockpile
projects and operations to unlock the value contained in
the tailings deliver natural resources to our customers
and achieve sustainable profitability for our shareholders 
positive cash flows from the cobre stockpile will be
used to support longterm asset increase as strategic
minerals looks to acquire additional resources within the
tailings arena  operational performance
04
highlights
we achieved our 2012 objectives in full as strategic minerals
transitioned from project developer to magnetite supplier to
the global marketplace as operations at our cobre stockpile
moved into fullscale production  sales to united states
domestic customers at mine gate commenced in 2012 and our
first export shipment was completed in november
strategic minerals plc annual report 2012
financial performance
• £29 million net new equity raised in may 2012
• total revenues of £375 million generated from 
both us domestic and export sales
• further £42 million net equity raised in february
2013
gross profit
£903000
2011 nil
offtake contract
800000
wet metric tonnes to be
supplied to glencore ag
revenue
£375m
2011 nil
• key development milestones reached with 
completion of rail upgrade at cobre in june first 
test shipment to the port of guaymas mexico in
august and first export market shipment of 
48000 dry metric tonnes dmt to glencore ag
in november
• offtake contract secured with glencore for supply
of an initial 800000 wet metric tonnes wmt
• sales to domestic customers commenced in 
2012 with truck sales at the mine gate
• exploration results at iron glen queensland from
30 hole drill programme indicate the presence 
of lead silver copper and zinc in addition to 
magnetite
• detailed evaluation and review of australian 
exploration assets completed with rationalisation 
programme commencing looking to reduce the 
burden of earlystage greenfield tenements and 
extract value from the promising ones overview performance governance financial statements
05
our strategy
the company seeks nearterm marketable magnetite
production assets away from high risk volatile and
geographically challenging regions while seeking to
release the embedded value in the companys
exploration assets investments are driven purely by
the quality of each opportunity and potential for value
upside
the following strategic priorities define our business
strategic minerals focuses on extracting value from
mineral stockpiles in manageable lowrisk mining
regions the overriding ambition is to achieve
superior returns from stockpiles and tailings  
strategic minerals plc annual report 2012
produce
achieve consistent magnetite shipments from the cobre stockpile
to the domestic and export markets 
sustain
generate earnings and positive cash flow from the cobre
stockpile and reinvest cash returns to optimise operational
development and shareholder value
grow
secure additional magnetite stockpiles to increase our resource
base and life of operations assess each project against stringent
investment criteria including anticipated return on investment
revenues operational and logistics costs inherent risks and risk
mitigation measures 06
executive chairman’s report
these achievements were accomplished
against a backdrop of continued high levels
of economic volatility across world markets
and uncertain commodity demand in the
world’s major markets debt issues in the
euro zone fragile recovery in the united
states and concerns over decelerating
growth levels in china and other emerging
global economies have contributed to a
challenging nearterm demand environment 
in the face of these challenges i am pleased
to report that strategic minerals performed
well during 2012 following my appointment
as executive chairman and the appointment
of paul harrison as chief executive officer in
may 2012 we embarked upon a nearterm
goal of achieving fullscale production at the
companys operations in new mexico and a
comprehensive evaluation of its exploration
assets in australia while i focused on the
companys operations in new mexico mr
harrison focused on a detailed review of our
pipeline of exploration iron ore assets in
queensland western australia and the
northern territory of australia raising funds
to deliver vital working capital for the
company and communication with our
shareholders and the wider investing
community
activities at the cobre stockpile were
strengthened by the conclusion of the
glencore offtake supply contract and the
completion of the south western railroad
railspur upgrade by ensuring the efficient
loading and shipment of deliveryready
magnetite at cobre strategic minerals has
successfully established a lowcost cash
generative operation that benefits from a
solid customer base and is well positioned to
achieve export sales in 2013 totalling
approximately 600000 dry metric tonnes
strategic minerals is uniquely positioned to
become a relevant supplier to the global iron
ore market
strategic minerals achieved key milestones in 2012 driven
by a commitment to commence fullscale production at the
cobre stockpile in new mexico increase resource
knowledge across our portfolio of australian exploration
stage projects and build sustainable value for shareholders 
strategic minerals plc annual report 2012
us35m
rail refurbishment completed at
cobre in 2012
48000
dry metric tonnes of magnetite
exported to glencore ag in
november 2012
100t
rail car shipments are now
possible from cobre overview performance governance financial statements
07
our cobre operations provide the launch
pad from which strategic can pursue the
acquisitions of additional magnetite
stockpiles and create longterm value in
that regard strategic minerals has a very
good relationship with the cobre mine
owner freeportmcmoran which we
believe puts strategic minerals in a good
position to secure rights to the additional
tailings at cobre if they become available as
well as potential opportunities at other
freeportmcmoran mines 
magnetite production cobre
our cobre operations in new mexico are
now in fullscale production 
strategic minerals’ deliveryready stockpile
of highgrade magnetite at the cobre
stockpile located at fiero in southern new
mexico is the byproduct of mining the
coppergoldmolybdenum copper porphyry
deposit until the mine’s closure in 2000
the beneficiated magnetite stockpile has a
jorc compliant resource of 800000
tonnes at a grade of 642 fe and 770000
tonnes at 591 fe and is highly saleable
in its existing state 
the cobre magnetite material is a treated
byproduct of copper mining and milling
activities from the 1970s after being
processed through ball mills to grind the
rock down to sand size p80 of 90 micron
the magnetite was recovered by magnetic
separation to form a magnetite
concentrate the magnetite has been
stockpiled in a dam for over 20 years and
contains minor and very thin seams of clay 
the clay seams along with trace amounts
of other minerals like garnet reduce the
iron grade of the product the clay and
other minerals are liberated and easily
removed during the screening process that
strategic minerals has established on site
the magnetite concentrate is non
hazardous and there is a full environmental
permit at cobre that enables the free
scoop screen and logistics operation to be
undertaken unhindered the material is a
highgrade magnetite feed stock suitable
for blending with lower iron grade or
coarser size materials to improve plant
efficiencies and throughput rates the
milling process reduced the particle size
down to 40150 micron therefore the
effort and energy required to refine the
magnetite product into a saleable product
has already been made
through the efforts of our team in new
mexico initial shipments took place early in
2012 with trucks collecting the magnetite
for domestic us consumers at mine gate
thus providing early cash flow for the
project and our first export shipment was
achieved in november
the most significant development step
came with the rehabilitation of the 63mile
10kilometre railspur link in june 2012
which enabled strategic minerals to
commence the supply of magnetite to the
export market the spur upgrade included
the installation of tie replacements
crossing and point changes some track
replacement and reballasting and
alignment 
the first test shipment by rail was
completed ahead of schedule in august
2012 this eight rail car shipment to the
port of guaymas in mexico was undertaken
to verify key equipment processes and
procedures ahead of fullscale commercial
rail shipments and to ensure robust
efficient rail freight operations i am pleased
to note that the strategic minerals
operational team quickly resolved all of the
minor operational glitches and equipment
issues that were encountered
having proven the logistics chain strategic
minerals focus turned to satisfying the terms
of the commercial contract signed with
glencore ag a subsidiary of worldleading
commodity supplier glencore international
plc which calls for the supply of 800000
wmts approximately 770000 dmt and
underlines the strength of the company’s
business model as a developer of value
adding deliveryready resources
the glencore contract first signed in march
2012 was renegotiated in the latter half of
the year to facilitate our first export in
november 2012 and again in january 2013
to facilitate regular shipments going
forward the november shipment of 48000
dmt of magnetite was the first export
shipment to be effected through the port of
guaymas and was a hugely important
milestone for the company marking the
end of the development stage and the
commencement of fullscale production
strategic minerals plc annual report 2012
   08
throughout 2013 we intend to complete
shipments averaging approximately 50000
dmt per month in 2012 we delivered over
20000 tonnes of magnetite to us domestic
customers at the mine gate in addition to
the 48000 dmt sold to glencore ag 
total revenues of £375 million were
achieved in 2012 resulting in a gross profit
of £09 million in our maiden year of
operations at cobre
the 2012 achievements at cobre have
demonstrated our ability to acquire and
develop projects to deliver shareholder
upside supplying high volumes of
magnetite ore to commercial customers
through the export market will enable us to
increase our revenues significantly in 2013
and beyond
governance
board composition is an essential
component in effective corporate
governance and ongoing strategic
planning i was pleased to join strategic
minerals’ board in the capacity of executive
chairman in may 2012 at the same time as
paul harrison was appointed chief
executive officer the year also saw the
appointments of david anderson as
finance director and george cardona who
joined the board as nonexecutive director
steven sanders who was previously
chairman of the company stepped down
in may 2012 and remained with the
company as a nonexecutive director until
april 2013 meanwhile executive director
matthew bonthrone and nonexecutive
director alex borrelli chose not to stand for
reelection at the annual general meeting
in june 2012 in order to focus on their
other business interests on behalf of the
board i would like to extend my thanks to
steven matthew and alex who made
substantial contributions to the
development of strategic minerals
particularly in bringing the company to the
aim market in 2011 
the board strives to achieve effective
decisionmaking and valueadding results
on behalf of the companys shareholders
the new executive composition of board
members has an appropriate balance of
skills and experience required to ensure the
continued fasttrack development of
strategic minerals in the global iron ore
sector and will as opportunities arise be
strengthened and enhanced we are
currently actively seeking additional non
executive directors with appropriate skills
and experience
outlook and prospects
despite the challenges of operating within a
volatile natural resource commodity
environment and concerns in some quarters
regarding the nearterm future of steel
making output in china the us and other
major manufacturing economies the outlook
for strategic minerals remains very
encouraging the glencore offtake contract
and other existing sales relationships in the
us give the company a stable platform for
growth 
we expect to sell 600000 dmt to the
export market during the year ending 31st
december 2013 whilst continuing sales to
the local market
strategic minerals remains committed to its
strategy of efficiently utilising capital to
generate substantial upside and position the
company for future growth as we progress
through 2013 i remain optimistic about the
prospects for our industry and our company
in particular  
i take this opportunity to thank our hard
working and dedicated team and
acknowledge the support provided to the
company by our stakeholders suppliers
and customers
james fyfe
executive chairman
24 may 2013
strategic minerals plc annual report 2012 overview performance governance financial statements
09
we are now well positioned to expand
delivery in 2013 to an average of 50000
dmt per month under the glencore off
take contract and additional sales are
expected to continue to domestic
customers
less than 18 months after our june 2011
listing on aim strategic minerals has
realised its immediate ambition of
becoming a major supplier of magnetite ore
to the world’s industrial markets  
we have reached this position by
targeting shareholder value on four fronts
• first a programme of productivity and 
operational efficiency at cobre
• second the successful completion of a
largescale sales supply contract with a 
global commodities trader
• third a detailed review of our pipeline 
of exploration iron ore assets in 
queensland western australia and the 
northern territory of australia and
• fourth securing funding for careful 
allocation to meet the working capital 
needs of the company through its 
operational growth phase
value has been created through
• the commercial contract concluded 
with glencore ag to deliver 800000 
wmt of magnetite concentrate giving 
strategic minerals a stable sales outlet 
that mitigates risk
• completing the us35 million 
refurbishment of the rail spur line to the 
cobre mine for bulk 100ton rail car 
shipments
• ongoing production increases through 
2012 culminating in the first export 
market shipment of 48000 dmt in 
november
these milestones demonstrate strategic
minerals’ technical and operational
capabilities as a developer and asset
manager of largescale mine stockpiles
revenues and experience generated at
cobre establish a stable platform for success
as strategic minerals looks to acquire rights
over additional magnetite stockpiles
iron ore exploration
australia licences
whilst the ramping up of operations at cobre
has been our focus we have worked to
access the most efficient way of releasing
value from the portfolio of exploration
properties management have taken a
fundamental decision that in the current
climate the main focus of the company has
to be the development of its core cash
producing tailings activities and not in
expending significant cash exploring early
stage “green field” tenements as a result the
company is now in the process of
rationalising its exploration portfolio
the most significant of the company’s
exploration assets is the iron glen property in
queensland in addition the company holds
a number of other tenements including
jotanooka and dragon rocks tenements
western australia and the roper river and
hodgson tenements northern territory
these latter tenements were acquired in the
strategic minerals plc annual report 2012
chief executive officer’s report
2012 was a year of strong operational development
for strategic minerals at the cobre stockpile
including the completion of the rail spur upgrade
and the achievement of full production output
from q4 
157mt
total magnetite resource at the
cobre stockpile
177mt
indicated resource containing
iron 302 silver 11 gt and
copper 011 at iron glen 10
ebony iron acquisition which was
completed in particular to acquire the cobre
tailings asset following a detailed review of
these tenements working in conjunction with
the company’s independent geological mine
consultants terra search the decision was
taken to rationalise the portfolio by reducing
the company’s exposure to lowgrade
uneconomic licenses thereby reducing the
ongoing cost of maintaining these non
prospective assets
as a result the company is in the process of
completing the relinquishment of the dragon
rocks tenements back to the state as well
as some of the tenements within the
hodgson and roper licenses thereafter the
company will turn its attention to the
jotanooka tenements these moves will
reduce the burden of exploration expenditure
and allow the focus to shift towards
maximising the value of the iron glen
property
iron glen remains the company’s core
exploration prospect located approximately
40 kilometres from the deep water port of
townsville the 2100hectare tenement has
been subject to extensive magnetic and
geochemical analysis since strategic
minerals acquired the exploration permit in
2007 a 45hole drilling programme has
returned a jorc compliant resource
estimate terra search pty ltd over the iron
silvercopper deposit indicated resources
comprise 177 million tonnes of 302 iron
110 grams per tonne gt silver and 011
copper a further 015 million tonnes at
196 iron is included in the inferred
category at a cutoff grade of 015 iron 
terra search pty was commissioned to
conduct exploration on the iron glen site in
both 2010 and 2011 the 2010 programme
consisted of 11 reverse circulation
percussion drill holes totaling 1258 metres
drilled along the northwest strike of the
ground magnetic anomaly coincident with
the abandoned iron glen open pit the 2011
programme infilled and marginally extended
the earlier programme the 2011 drilling
consisted of 34 holes with total drill
meterage of 4452 metres that includes 3648
metres of reverse circulation percussion rc
and 80495 metres of core drilling 
total drilling completed at the iron glen
polymetallic skarn amounts to 45 holes
totalling 5710 metres including 4906 metres
rc and 80495 metres core
geological geochemical and
geophysical data from these
programmes was utilised to calculate at
iron glen resources to jorc standards
announced on 21 february 2012
highlights included
• drill indicated resource at 15 cutoff 
confirmed by independent consultants 
as 177 million tonnes  302 iron fe
• the indicated resource and adjacent 
inferred resource of 015 million tonnes 
at 196  fe resulted in a total 
resource of 192 million tonnes  
293 iron fe 010 copper cu 
and 103gt silver ag
• consultants have estimated through 
preliminary davis tube testwork that 
iron glen contains an inferred in ground
resource of 630000 tonnes of potential 
magnetite concentrate
• in addition to the drill indicated 
resources referred to above an inferred 
resource of 29 million tonnes  131 gt 
ag occurs peripheral to the magnetite 
skarn using a ag cutoff of 5 gt ag
• total silver insitu indicated and 
inferred resource estimate is 482 
million tonnes  120 gt ag 186 
million ounces 
• applying prices as of february 2012 to 
these magnetite and silver resources 
resulted in an estimated insitu value in 
the order of a140m this figure is to 
be used as a guide only
• separately from the magnetite skarn 
deposit at iron glen a silverleadzinc 
deposit has been identified 2 kilometres
northwest along strike referred to as the
lead belly prospect
these results provide a positive platform for
strategic minerals to continue to examine
the best way to exploit the asset going
forward
strategic minerals plc annual report 2012 overview performance governance financial statements
11
test work suggests that iron glen contains
an inferred insitu resource of 630000
tonnes of potential magnetite concentrate
the project benefits from good and
improving regional infrastructure iron glen is
10 kilometres west of the main railway line
and the flanders highway that connect the
miningindustrial complex of mt isa to
townsville the deepwater port at
townsville is less than 40 kilometres from
iron glen by rail a major electricity
transmission line traverses 3 kilometres north
of iron glen
subject to further resource profiling and
positive economic assessment work the aim
is to continue project development in
advance of a decision as to how best to
extract value from the asset
concluding comments
strategic minerals has made significant
progress over the last 12 months moving
from being a preproduction cash
consuming business to being soundly
funded and in fullscale commercial
production against the challenges being
confronted in the sector by traditional
junior exploration companies strategic has
now set down a different path to maximise
the profitability of its first core producing
asset and to continue to identify new
opportunities in the tailings arena 
working with major participants in the
global resources sector the company has
demonstrated its ability to deliver a quality
product to the market place whilst prices
have fluctuated over the last year and the
market faces some challenges in the near
term we expect to see stabilisation in the
magnetite and wider iron ore sector over
the mediumterm strategic minerals is well
positioned to take advantage of future
production acquisition and project
development opportunities
paul harrison
chief executive officer
24 may 2013
strategic minerals plc annual report 2012 12
market review
historically closeddoor negotiations
between major mining houses and
steelmakers governed the iron ore and
magnetite spot and contract markets
effective 1st april 2010 pricing moved to
shortterm indexbased mechanisms
following the trend towards marketbased
commodity pricing systems in broad terms
the magnetite price for steelmaking
applications tracks the 62 iron ore spot
price with premiums being paid for
increased iron ore content typically that
premium is circa us5 irontonne over
hematite feed stock fe
2
o
3
 heavy media
magnetite typically having an iron content
of between 67 and 70 has the highest
premium with medium grade magnetite
circa 65 iron sold at a lower price and
magnetite grading less than 65 iron 
lower still 
prices are determined not only by the
grade of the magnetite but also by its
market use there are four major market
segments that have the potential to
purchase magnetite from strategic
minerals these are
1 us domestic industrial purchasers 
including the agrichemical and fertiliser
sector burial vaults and the concrete 
water filtration and petrochemical 
industries typical requirements are for 
lowergrade magnetite
2 us steel mills typically requiring high
grade magnetite
3 international purchasers including 
traders and steel mills typical 
requirements vary from lowgrade to 
higher iron content magnetite
4 us domestic and international coals 
sectors which utilise magnetite as 
heavy media for coal preparation plants
to separate coal from unwanted 
materials the density of the product 
controls the desired specific gravity the
heavy media must also have strong 
magnetics so it can be reclaimed using
magnetic separators typical 
requirements are for highgrade 
magnetite above 67 iron
market demand
strategic minerals magnetite contains iron
grades that are sufficiently high to satisfy
domestic and international demand for all
but highgrade magnetite in addition to the
company’s offtake contract with glencore
ag there is stable demand at the mine gate
from us customers from a broad range of
industrial sectors primarily in the speciality
and custom processed markets segment
whilst magnetite is a commonly occurring
mineral there are few magnetite mines in
the us the most profitable magnetite iron
ore deposits in the united states can be
found at minnesotas mesabi iron range
michigans lake erie lower lake michigan
and the new york adirondack mountains
smaller us deposits are located in north
carolina pennsylvania oregon colorado
new mexico utah virginia and new
jersey magnetite bearing iron formations
are mined extensively in brazil which
exports significant quantities to asia and
there is a large and developing magnetite
iron ore industry in australia
cobre is particularly well positioned to offer
competitive pricing to consumers located
in the southwest of the united states and
since the operation does not require costly
beneficiation to produce magnetite ore
offers substantial cost efficiencies
compared to north american and
international primary magnetite mines
strategic minerals operates in the magnetite
sector part of the iron ore and related ferrous
markets which is the second largest bulk
commodity market after crude oil
strategic minerals plc annual report 2012 overview performance governance financial statements
13
broader pricing
the global growth in iron ore usage
combined with falling grades reported at
many hematite mines has pushed up the
magnetite price in recent years china is
the world’s largest consumer of iron ore
with growing demand being driven by the
urbanisation of china’s population and the
growth in chinese industrial output in
recent years chinese steel manufacturers
have taken strategic positions in australian
iron ore companies with a particular trend
to invest in existing and potential magnetite
producers in order to acquire dependable
highgrade feed for their operations
china’s annual crude steel output passed
13 billion tonnes in 2011 
having peaked at us177 per tonne in
september 2011 prices fell to less than
us100 per tonne in september 2012
despite the midyear peak of us148 per
tonne recorded in april the decline in spot
iron ore prices in h2 2012 was large by
historic standards fuelled by global over
supply of iron ore and by concerns that
chinese industrial growth may be slowing
and spent many weeks below what had
been considered to be the floor price
threshold of us120 per tonne several
mines including some developing
magnetite mines were taken out of
productiondevelopment as a result of
these concerns
however there is evidence that nearterm
pricing has recovered buoyed by signs of
policyled recovery in chinese growth
demand with pricing as of january 2013
passing the us150 per tonne mark
despite this the major world economies
remain largely week and the outlook on
commodity prices is dependent on their
recovery as a result the longerterm
outlook remains subdued 
strategic minerals however has a
number of factors working in its favour
including
• dependable sales through the glencore
contract
• stable market demand from us 
consumers including speciality and 
custom processed markets segment
• no mine development or refining costs 
the magnetite at cobre is deliveryready
and suitable for most end uses with 
minimal further processing
• the cutting back of supply at primary 
magnetite mines should bolster prices 
from existing producers
strategic minerals plc annual report 2012
about magnetite
magnetite fe
3
o
4
 is the most
magnetic mineral found in nature in
its natural ore form magnetite
usually has a grade of between 25
and 40 iron and requires
downstream processing including
crushing screening grinding
magnetic separation filtering and
drying before its is suitable as high
grade feed upwards of 66 iron in
the steelmaking industry
a multipurpose coal processing and
industrial additive product that meets
or exceeds the most stringent quality
standards of the various industries
magnetite concentrate grades are
generally in excess of 63 iron by
weight and usually are low
phosphorus low aluminium low
titanium and low silica
since magnetite has internal thermal
energy it requires less energy than
hematite in the steelmaking process
and as a result produces less
carbon dioxide emissions in 2010
magnetite accounted for
approximately 30 of global iron
furnace feed for steel production
magnetite can also be used for any
purpose where additional weight
density or magnetics are required
specifically applications include
• as an industrial water filtration 
agent
• in the manufacture of magnets
• as a heavy aggregate in concrete
construction
• as a filler in plastic polymer and 
rubber production
• as a soil fertiliser in agriculture
• for weight ballast in maritime 
purposes including ships  
offshore oil rigs
• as an additive in paint products 
to achieve red and brown 
pigments
• for radiation and electromagnetic
field shielding 14
financial review
the purpose of this review is to provide
more information about the company’s
consolidated 2012 results and the main
factors affecting the financial performance
the financial review should be read in
conjunction with the financial statements
and associated notes which appear on
pages 27 to 63 of this report
revenue and gross profit
the year was defined by our first export
shipment in november 2012 together with
the ramp up of domestic sales in 2012
generating total sales of £3754000 for the
year
our cost of sales comprises the processing
of the tailings at the cobre site the loading
onto trucks for domestic sales or rail cars
for export sales sampling and testing the
magnetite royalties payable to freeport on
a per ton basis of magnetite leaving mine
gate and port receiving storing and
loading costs  export sales are made on a
fob basis and the selling price of our
export sales is by reference to the platts
iodex 62 fe china cfr price less
shipping costs and buyer commission
one additional factor to take into account
is currency movements  all our sales and
cost of sales are denominated in us
dollars whereas our presentational
currency for the time being is pounds
sterling  in november and december the
pound was trading strongly against the
dollar rising beyond the 160 mark towards
the end of the year and with a rate around
the 158 mark being used as an average for
translating our income statement  in our
case therefore a weakening of the pound
improves our reported gross profit 
noncash and 
nonrecurring items
the year has been impacted by a number
of significant noncash and nonrecurring
items which need further explanation
amortisation and depreciation
as explained more fully in note 3 we have
recorded a prior year adjustment in the
2012 financial statements to correct a
number of errors made in the 2011 financial
statements  chief among these was the
accounting for the acquisition of ebony iron
pty limited “ebony” in september 2011
two issues arose the calculation of the
consideration paid and the appropriate
description of the main asset acquired
the consideration was settled in full by the
issue of 94000000 ordinary shares in the
company  in such cases the fair value of
the consideration is based on the share
price at the acquisition date not the price
implied by the contract  originally goodwill
was the asset recognised in 2011 but in
reality the reason for the acquisition was
largely to obtain the benefit of the contract
entered into by southern minerals group
llc an entity wholly owned by ebony for
the exclusive rights to market a magnetite
stockpile at the cobre mine in new mexico
accordingly that is the nature of the asset
and thus that is the intangible asset now
recognised  unlike goodwill however the
resultant intangible asset must be
amortised
strategic minerals is pleased to report an inaugural gross profit
of £903000 achieved in the 2012 reporting year which follows
the commencement of production at cobre and sales made
through the year to domestic customers at mine gate and
through our first export shipment under the terms of our offtake
contract  
strategic minerals plc annual report 2012
£903000
gross profit achieved in 2012 as
a result of operations overview performance governance financial statements
15
the result of these changes generated a
noncash charge to the income statement
of £810000 for the year to 31 december
2012 although in part reduced by a release
of the deferred tax creditor of £198000  
in addition we commenced depreciation of
the cost of rehabilitating the spur railroad
infrastructure to the mine to reflect the use
of the railroad as we commenced
transportation of the magnetite to port
share based payments
in 2012 new warrants of 39062500 were
issued to participants in an equity placement
and 12000000 warrants were issued to a
third party advisor to the company  the
charge for the year was £95000
exploration and evaluation expenditure
as has been stated in the preceding reports
our primary focus is on maximising value
from our us operations
we continue to believe that the iron glen
tenements have significant value but we
have been carefully reviewing the true value
of the assets acquired following the
acquisition of ebony the northern territory
“nt” tenements and the follow on
acquisition of the western australia “wa”
tenements following the acquisition from
quadrio resources pty ltd in january
2012
the nt and wa tenements were acquired
predominantly by the issue of shares and in
the year to 31 december 2012 additional
spend totalled £113000  as a result of
decisions taken to relinquish or not pursue
extensions following the expiry of license
terms the total carrying value of £835000
has been charged to the income statement
in the year
this is clearly a nonrecurring item but as
the majority of the cost arose from the
issue of shares it is also largely noncash
administrative expenses
as will also be clear from the preceding
reports the year has been one of transition
as such there are a number of costs
incurred in the year which will not recur
the total of such costs arising in 2012 was
circa £1000000
financing
in february the company refinanced
aud12m of the aud18m loan which was
due for repayment on 31 december 2011
and under the terms of the arrangement
entered into a new £950670 convertible
loan note repayable in december 2014
this debt remained outstanding at 31
december 2012 but subsequent to the
yearend £790670 was renegotiated to be
settled in full by instalments by 31
december 2013 together with the balance
of a loan denominated in australian dollars
in may the company raised a total of
£3125000 before expenses from a
placement of 39062500 new ordinary
shares   
in late 2012 following our first export sale
the company financed its working capital
through short term bridge loans which were
paid in full post year end following the
successful february 2013 equity
placement which raised £4200000 net of
expenses
conclusion
as previously stated 2012 has been a year
of transition i hope the foregoing enables
you to better understand the financial
outcomes for the year
david anderson
finance director
24 may 2013
strategic minerals plc annual report 2012
adjusted financial summary £’000
loss from operations – as reported 4279
noncash items
amortisation of intangible asset 810
depreciation of tangible assets 86
sharebased payments 95
cash loss from operations before interest 3288
nonrecurring items
exploration and evaluation expenditure 835
adjusted cash and recurring loss from operations before interest 2453 16
risk management
our principal risks and uncertainties relate to operational
financial personnel and environmental risks we also
face risks associated with magnetite pricing and the
challenge to deliver on shareholder expectations
strategic minerals regularly reviews the principal risks
that face the business and assesses appropriate
responses to mitigate and where possible eliminate
potential adverse impact the key risks and uncertainties
that face the company are presented below together
with the relevant risk mitigation strategies
whilst risk is inevitable in the business of natural resource
development and transportation it is possible to manage risks
to minimise their impacts strategic minerals has created a risk
management system that enables us to pursue opportunities
and achieve shareholder value as well as developing our
portfolio and maintaining our reputation
strategic minerals plc annual report 2012
companies operating as exploration
stage project operators and
operators of stockpiles andor
tailings require various licences and
permits and to hold secure tenure
over the assets that underpin their
valuation operational capability and
ability to explore mine process and
transport their product to generate
economic returns failure to secure
and maintain the relevant licences
and permits may result in the loss of
assets
strategic minerals ensures that its
licences and permits are maintained
in compliance with the relevant
jurisdiction laws and requirements
strategic minerals can call upon the
services of geological consultants
tenure management advisors and
legal advisory to ensure
documentation is correctly held and
due process is followed
the company operates under the
freeportmcmoran licenses and
permits at cobre
low strategic minerals has contracted
rights to sell the cobre stockpile the
stockpile is accessed under an
agreement between the company
and freeportmcmoran nyce
fcx
the company’s australian properties
are located in regions with
established tenure licencing and
permitting precedent and as
classified as lowrisk political
jurisdiction profiles by aon risk
risk mitigationcomment potential impact further information
strategic risks
mineral reserve and resource
estimates are based on several
assumptions including geological
and metallurgical assumptions
there can be no assurance that the
anticipated tonnages or grades will
be achieved particularly at early
stage exploration projects
resources at cobre have been
subjected to extensive resource
evaluation mineral reserves and
resources estimates will be updated
regularly at the company’s
australian licences as exploration
and resource delineation
programmes progress and be
prepared to internationally
recognised code compliant
standards 
low independent accredited experts
prepare all resource estimates on
behalf of the company
resource estimates are lowrisk at
cobre as a stockpile resource the
magnetite at cobre can be assessed
in relation to quality and quantity on
a dependable basis compared to
exploration discoveries
reserve and resource estimates
permits licences tenure and contracts overview performance governance financial statements
17
strategic minerals plc annual report 2012
strategic minerals’ financial
performance is dependent on the
market price of magnetite adverse
movement in the commodity price
could have a material impact on
operations
the company outsources the
majority of its operations and thus is
well placed to manage its cost base
relative to the prevailing market
prices  the company also has the
ability to cease production if the
market price falls below an
acceptable level  
medium the cobre stockpile is a lowcost
operation compared to the majority of
magnetite mines that process
magnetite from primary ore as a
result the strategic minerals’
operation competes well with its
supply peers and can remain
profitable even in times of reduced
commodity prices
risk mitigationcomment potential impact further information
financial risks
strategic minerals needs finance both
to manage its working capital
requirements and fund new projects
as the company seeks to grow  
if the company is not able to obtain
sufficient financial resources it may
not be able to raise sufficient funds to
develop new projects
the board strives to ensure liquidity
through corporate actions and
ownership of positive cash flow
projects
to date this has been provided by
shortterm funding and equity
placements provided commodity
prices stay at profitable levels and we
are able to continue a steady flow of
shipments and domestic sales the
need to finance this working capital is
low
low the company has been successful
in raising funds to date with regular
shipments in progress revenues
generated at cobre are expected to
mitigate liquidity risk 
liquidity
commodity prices
loss of key management personnel
can impact on the company’s
strategic and operational
functionality
strategic minerals has identified and
engaged independent experts to
provide the necessary technical
expertise and uses independent
contractors to undertake key
operational tasks
medium
personnel risks
skills shortages have been a feature
of mine development across the
board the inability to attract suitably
skilled individuals in the vicinity of
strategic minerals’ operations can
impact on the quality and efficiency
of the work performed
management will implement
retention strategies including
competitive wage arrangements as
and when required
medium
skills availability
management
the exploitation and transportation
of natural resources and exploration
activities are inherently hazardous
failure to adopt high levels of safety
management can result in a number
of negative outcomes including
bodily harm to employees and
contractors and damage to the
company’s reputation
strategic minerals works under the
freeport mcmoran health and
safety certificate at the cobre site
health and safety procedures are
adopted at all project sites and all
personnel including contractors are
trained in sitespecific procedures
workplace health and safety
measures are monitored to ensure
compliance
high all contractors on site are required to
demonstrate that they hold current
insurance policies covering the
relevant aspects of health and safety
employees work under a stringent
health and safety policy
health and safety 18
strategic minerals plc annual report 2012
unforeseen environmental
degradation resulting from the
company’s activities may result in
liability andor the requirement to
undertake extensive remedial clean
up actions
all operational planning takes
environmental issues and
responsibilities into account third
parties are contracted to identity
environmental risks and mitigation
measures wherever required
medium all exploration projects will be
required to secure environmental
permitting the cobre operation is
fully environmentally permitted
risk mitigationcomment potential impact further information
environmental risks
environmental impact
strategic minerals may be affected by
political or regulatory developments
in the countries and jurisdictions in
which it operates including to
changes to fiscal and other regulatory
measures
the company focuses its operations
on stable mining friendly countries
and liaises with government
departments on various aspects of its
operations on a regular basis
strategic minerals monitors the
political landscape to keep abreast of
likely changes in regulatory policies
both national and international
low both cobre and strategic minerals’
explorationstage properties are
located in regions with lowrisk
political jurisdiction profiles as
classified by aon risk 
external risks
disputes may arise with local
communities causing disruption to
projects or operations
strategic minerals is committed to
the establishment of close working
relationships with communities in the
areas in which it operates
low the cobre stockpile is located in an
area with long mining traditions the
community understands the benefits
and requirements of ore extraction
and transportation 
community relations
political legal and regulatory developments overview performance governance financial statements
19
board of directors
james fyfe 
chairman
james fyfe is a highly experienced business
consultant in the natural resources sector
who has advised public and private
companies in europe africa australia
central america russia and the former
soviet union his particular focus is on
strategic operational and financial planning
corporate structuring and debt and equity
financings mr fyfe is currently a director of
riverwide capital partners ltd more house
trust limited tower investment corporation
limited countdown solutions limited and
eden first limited
paul harrison 
chief executive officer
paul harrison began his career at the oil and
resource specialist firm wood mackenzie 
co before progressing to become a director of
county natwest woodmac and subsequently
executive vice president in the ukeuropean
division of salomon brothers inc since 1994
he has successfully advised a wide range of
companies both private and public primarily
in the natural resources sector these have
had a broad mineral and geographical spread
and covered operations in multiple african
countries central america australia russia
and the fsu over the period he has raised
significant funding for clients
david anderson
finance director
david anderson qualified as a chartered
accountant with bdo llp in 1990 and was
admitted to the partnership in 1998 he
remained with bdo until 2009 where he
progressed to lead partner responsible for a
120 staff audit team  after leaving bdo david
was appointed as interim finance director of
hakkasan limited owner of two michelin
starred restaurants in london in november
2010 he joined crowe clark whitehill llp as
an audit and advisory partner mr anderson is
or has been a director of several companies
and partnerships within the past 5 years
including alithia llp and fairfield opportunity
farm dilton ltd former directorships
partnerships within the past 5 years are
crowe clark whitehill llp and bdo llp 
patrick griffiths 
director
patrick griffiths holds a bcom merit from
the university of new south wales an mba
from the university of sydney and is a
member of national institute of accountants
mnia mr griffiths has experience in a
variety of industries ranging from agriculture
building and construction chemicals
finance manufacturing mining quarries and
technology 
mr griffiths’ mining industry experience
extends from prior to 1973 he was a
director and then managing director of a
mining group listed on the johannesburg
stock exchange awande holdings limited
with two operating mines and one
exploration project in namibia in more
recent times mr griffiths was a director and
general manager of the australian based
subsidiaries of aim quoted sirius exploration
plc
mr griffiths’ roles have included managing
director general manager chief financial
officer business advisor and analyst
financial planner and logistics manager
george cardona 
independent nonexecutive director
mr cardona has extensive experience in
strategic advice finance and general
management having served as a board
member for a range of finance and natural
resources companies
an oxford university graduate and formerly a
special adviser to the british treasury mr
cardona spent the first half of his career in
banking and politics before spending 15
years with hsbc performing several
managerial roles around the world in 2000
he left hsbc and formed cardona lloyd 
co a corporate finance advisory and asset
management company which he ran for 7
years from 2006 he became a director and
eventually chairman of linea limited a
privately owned company with interests in
companies such as ojsc eurochem mineral
and chemical company ojsc siberian coal
energy company and ks ag germany a
dax30 listed mining company he has been
a director of a number of other listed
companies both in the uk and around the
world including renewable energy
generation limited and martin currie pacific
trust plc
strategic minerals plc annual report 2012 20
report of the directors 
the directors present their report and the audited financial statements for the group for the year ended 31 december 2012
principal activities business review and future developments
the company was formed on 16 november 2010 as strategic minerals limited “sm” and reregistered to a public limited company on 
9 february 2011 on 8 june 2011 the company gained admission to the alternative investment market aim of the london stock
exchange
the company is a public limited company registered in the uk whose registered office is finsgate 5 – 7 cranwood street london ec1v
9ee
the company is engaged in the sale of magnetite iron ore from a tailings deposit at the cobre mine in new mexico and holds a number
of explorationstage assets in australia 
a review of the group’s business during the financial year and its likely development is given in the preceding chairman’s chief
executive’s and finance director’s reports
the company was set up as a holding company for iron glen holdings limited “igh” a company registered and operating in australia
sm acquired its 100 interest in igh by way of a share for share exchange which was accounted for as a group reorganisation in the
group accounts for the period ended 31 december 2011
on the 2 september 2011 the company acquired 100 of ebony iron pty limited “ebony” an australian registered company by the
allotment and issue of 94000000 shares in sm to ebony’s shareholders  ebony owned a 100 interest in southern minerals group llc
a us incorporated entity which has exclusive rights to market a magnetite stockpile held at the cobre mine in new mexico
in the year to 31 december 2012 the company completed its first us domestic and export sales of magnetite following the successful
conclusion of a contract for sale with a subsidiary of glencore international plc
in 2013 the company is focussed on achieving annual export sales of approximately 600000 dry metric tonnes dmt
results and dividends
the group recorded a loss after taxation for the year of £4358000
the directors do not propose to recommend any distribution by way of dividend for the period ended 31 december 2012
financial risk management objectives and policies
the directors constantly monitor the financial risks and uncertainties facing the group with particular reference to its exposure to platts
iodex 62 fe cfr china price foreign currency and liquidity risks the directors are confident that suitable policies are in place and
that all material financial risks have been considered further details are provided in note 4 to the financial statements
key risks and uncertainties 
these are considered in detail under risk management on pages 16 to 18
key performance indicators 
the group monitors its key performance indicators kpi’s on a regular basis  for most of 2012 the principal kpi has been the level of
cash spend with the commencement of sales in the year monitored kpi’s now include tons processed and held at mine or port costs
per ton and movements in the platts iodex 62 fe cfr china price as this is used to calculate the invoiced value of goods sold  
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
21
directors
the directors who served the company during the period were as follows
matthew d bonthrone resigned 26 june 2012
steven sanders resigned 25 april 2013 
patrick griffiths
m alex borrelli resigned 26 june 2012
george s cardona appointed 26 march 2012
james j fyfe appointed 30 may 2012
paul l harrison appointed 30 may 2012
david m anderson appointed 1 october 2012
directors’ interest in shares
the persons who held office at the yearend had the following interests in the issued share capital of the company ordinary shares of
01p nominal value
steven sanders 615854
patrick griffiths 5275005
george s cardona 14084030
options held by the directors are as follows
no of exercise 
ordinary shares price
patrick griffiths 6409989 £0031
steven sanders 11684994 £0031
directors’ remuneration and service contracts 
under their respective service contracts the executive chairman chief executive officer chief financial officer and the nonexecutive
directors are entitled to receive relevant fees as detailed in the directors’ remuneration in note 7 
pensions
the group does not operate a pension scheme and has not paid any contributions to any pension scheme for directors or employees
strategic minerals plc annual report 2012
overview financial statements 22
report of the directors 
substantial shareholders
as at 23 may 2013 shareholdings of 3 or more of the issued share capital notified to the company were
number of percentage of 
01p ordinary shares issued share capital
half shell holdings 180901250 3266
chase nominees limited and chase ga group nominees limited 32334445 584
james chisholm 31419092 567
leo knifton 23369988 422
credit suisse client nominees limited and fitel nominees limited 20700000 374
creditor payment policy
the company’s current policy concerning the payment of trade creditors is to
• settle the terms of payment with suppliers when agreeing the terms of each transaction
• ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts and
• pay in accordance with the group’s contractual and other legal obligations
the creditor’s days as at 31 december 2012 were 50 days 
political and charitable contributions
there were no political or charitable contributions made by the group during the period ended 31 december 2012
information to shareholders  website
the company has its own website wwwstrategicmineralsnet for the purposes of improving information flow to shareholders as well as
to potential investors
going concern
as disclosed in note 1 to the financial statements the directors consider that they have adequate funds to meet the group’s working
capital requirements for the period to 30 june 2014 as at 31 december 2012 the company had cash resources of £763000 and total
borrowings of £3010000 the latter in large part to provide working capital to fund the shipments of magnetite  in february 2013 the
directors raised £42m net of expenses by way of a placement of new shares  with shipments now having been successfully completed
in 2013 the directors consider the group has adequate financial resources for its immediate needs  for this reason they continue to
adopt the going concern basis in preparing the financial statements 
relations with shareholders
the board attaches great importance to maintaining good relationships with shareholders the board regards the annual general
meeting as an opportunity to communicate directly with investors who are encouraged to attend and participate
indemnity of officers
the group currently maintains insurance to cover against legal action brought against its directors and officers however the group may
purchase and maintain for any director or officer insurance against any liability in the near future pending the evolution and complexity of
any further new projects undertaken by the company  
events after the end of the reporting period
refer to note 25 to the financial statements for further details
publication of accounts on company website
financial statements are published on the company’s website the maintenance and integrity of the website is the responsibility of the
directors the directors’ responsibility also extends to the financial statements contained therein 
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
23
statement of directors’ responsibilities
the directors are responsible for preparing the directors’ report and the financial statements in accordance with applicable law and
regulations
company law requires the directors to prepare financial statements for each financial period under that law the directors have as
required by the aim rules for companies of the london stock exchange elected to prepare the group and parent financial statements in
accordance with international financial reporting standards ifrs as adopted for use in the european union under company law the
directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the
company and group and of the profit and loss for that period  in preparing these financial statements the directors are required to
• select suitable accounting policies and then apply them consistently
• make judgements and estimates that are reasonable and prudent
• state whether the group and parent company financial statements have been prepared in accordance with ifrs as adopted by the 
european union subject to any material departures disclosed and explained in the financial statements and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company and the group 
will continue in business
the directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial
position of the company and the group and enable them to ensure that the financial statements comply with the companies act 2006
they are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities
statement as to disclosure of information to auditors
so far as the directors at the time of approval of their report are aware
• there is no relevant audit information of which the groups auditors are unaware and
• the directors have taken all steps that they ought to have taken as directors in order to make themselves aware of any relevant audit 
information and to establish that the auditors are aware of that information
auditors
in accordance with section 489 of the companies act 2006 a resolution proposing that jeffreys henry llp be reappointed as auditors of
the group will be put to the annual general meeting
strategic minerals plc annual report 2012
for the year ended 31 december 2012 24
statement of corporate governance
the board
the aim of the board is to function at the head of the group’s management structures leading and controlling its activities and setting a
strategy for enhancing shareholder value meetings are held to review the group’s forward planning the board currently consists of four
executive and one nonexecutive director the directors recognise the importance of sound corporate governance commensurate with
the size and nature of the company and the interests of its shareholders and seek to comply in all material respects with the corporate
governance guidelines for smaller quoted companies  the group has established an audit committee with formally delegated duties
and responsibilities  the group does not have a nominations committee or remuneration committee with the board collectively
undertaking the function of such committees
the purpose of the audit committee which is chaired by george cardona is to provide formal and transparent arrangements for
considering how to apply the financial report and internal control principles set out in the corporate governance guidelines for smaller
quoted companies and to maintain an appropriate relationship with the companys auditors the key terms are as follows
• to monitor the integrity of the financial statements of the company and group and any formal announcement relating to the 
companys performance
• to monitor the effectiveness of the external audit process and make recommendations to the board in relation to the appointment 
reappointment and remuneration of the external auditors
• to keep under review the relationship with the external auditors including but not limited to their independence and objectivity and
• to keep under review the effectiveness of the companys financial reporting and internal control policies and systems
internal control 
the board has overall responsibility for ensuring that the group maintains systems and internal financial controls that provide them with
reasonable assurance regarding the financial information both for use within the business and for external publication and that the
group’s assets are safeguarded the board is in the process of evaluating a means for identifying evaluating and managing the principal
risks faced by the group the board will regularly review such a process
by order of the board
david m anderson
director
24 may 2013
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
25
report of the auditors
independent auditor’s report to the shareholders of strategic minerals plc
we have audited the group and parent company financial statements the “financial statements” of strategic minerals plc for the year
ended 31 december 2012 which comprise the consolidated statement of comprehensive income the consolidated and parent company
statement of financial position the consolidated and parent company statement of cash flows the consolidated and parent company
statement of changes in equity and the related notes the financial reporting framework that has been applied in their preparation is
applicable law and international financial reporting standards ifrss as adopted by the european union and as regards the parent
company financial statements as applied in accordance with the provisions of the companies act 2006
this report is made solely to the companys members as a body in accordance with chapter 3 of part 16 of the companies act 2006
our audit work has been undertaken so that we might state to the companys members those matters we are required to state to them in
an auditors report and for no other purpose  to the fullest extent permitted by law we do not accept or assume responsibility to anyone
other than the company and the companys members as a body for our audit work for this report or for the opinions we have formed
respective responsibilities of directors and auditors
as explained more fully in the statement of directors’ responsibilities set out on page 23 the directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view  
our responsibility is to audit the financial statements in accordance with applicable law and international standards on auditing uk and
ireland those standards require us to comply with the auditing practices board’s ethical standards for auditors
scope of the audit of the financial statements
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable
assurance that the financial statements are free from material misstatement whether caused by fraud or error this includes an
assessment of whether the accounting policies are appropriate to the group’s and the parent company’s circumstances and have been
consistently applied and adequately disclosed the reasonableness of significant accounting estimates made by the directors and the
overall presentation of the financial statements in addition we read all financial and nonfinancial information in the executive chairman’s
report chief executive officer’s report market review financial review statement of corporate governance and report of the
directors to identify material inconsistencies with the audited financial statements if we become aware of any apparent material
misstatements or inconsistencies we consider the implications for our report
opinion on financial statements
in our opinion
• the financial statements give a true and fair view of the state of the group’s and the parent company’s affairs as at 31 december 
2012 and of the group’s loss and the group and parent company’s cash flow for the year then ended
• the group financial statements have been properly prepared in accordance with ifrss as adopted by the european union
• the parent company financial statements have been properly prepared in accordance with ifrss as adopted by the european union 
and as applied in accordance with the provisions of the companies act 2006 and
• the financial statements have been prepared in accordance with the requirements of the companies act 2006
opinion on the other matters prescribed by the companies act 2006
in our opinion the information given in the directors’ report for the financial year for which the financial statements are prepared is
consistent with the financial statements
strategic minerals plc annual report 2012
for the year ended 31 december 2012 26
report of the auditors continued
matters on which we are required to report by exception
we have nothing to report in respect of the following matters where the companies act 2006 requires us to report to you if in our
opinion
• adequate accounting records have not been kept by the parent company or returns adequate for our audit have not been received
from branches not visited by us or
• the parent company financial statements are not in agreement with the accounting records and returns or
• certain disclosures of directors’ remuneration specified by law are not made or
• we have not received all the information and explanations we require for our audit
for and on behalf of 
jeffreys henry llp
statutory auditor
finsgate
57 cranwood street
london ec1v 9ee
sanjay parmar 
senior statutory auditor
24 may 2013
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
27
consolidated statement of comprehensive income
as restated
year to period to
31 december 2012 31 december 2011
notes £’000 £’000
continuing operations
revenue 3754 
cost of sales 2851 
gross profit 903 
aim admission expenses  581
share based payment 95 1257
expenses on acquisition of ebony iron pty limited  258
exploration and evaluation expenditure 835 
amortisation of intangible asset 312 810 
administrative expenses 6 3442 1310
loss from operations 4279 3406
finance income 8 24
finance expense 8 714 33
loss before taxation 4993 3415
income tax credit 9 635 
loss for the period 4358 3415
other comprehensive income
exchange losses  gains arising on translation of foreign operations 676 571
total comprehensive income 5034 2844
loss for the period attributable to
owners of the parent 4358 3415
total comprehensive income attributable to
owners of the parent 5034 2844
loss per share attributable to the ordinary equity holders of the parent
continuing activities  basic and diluted 11 100p 122p
the accompanying accounting policies and notes form an integral part of these financial statements
strategic minerals plc annual report 2012
for the year ended 31 december 2012 28
consolidated statement of financial position
as restated
2012 2011
notes £’000 £’000
assets
noncurrent assets
intangible assets 12 16280 17950
property plant and equipment 13 2003 1519
deferred tax asset 19 437 
18720 19469
current assets
inventories 14 1722 
trade and other receivables 15 1097 503
cash and cash equivalents 16 763 299
3582 802
total assets 22302 20271
issued capital and reserves attributable to owners of the parent
share capital 20 448 399
share premium reserve 20914 17102
merger reserve 3 12483 12483
foreign exchange reserve 105 571
share options reserve 21 1352 1257
other reserves 14363 14363
accumulated loss 7953 3595
total equity 12776 13854
liabilities
noncurrent liabilities
loans and borrowings 17 951 
deferred tax liability 19 3791 4168
4742 4168
current liabilities
loans and borrowings 17 2059 1500
trade and other payables 18 2725 749
4784 2249
total liabilities 9526 6417
total equity and liabilities 22302 20271
the accompanying accounting policies and notes form an integral part of these financial statements
these financial statements were approved and authorised for issue by the board of directors on 24 may 2013 and were signed on its
behalf by
david m anderson
director
company registration no 07440902 england and wales
strategic minerals plc annual report 2012
as at 31 december 2012 overview performance governance financial statements
29
company statement of financial position
as restated
2012 2011
notes £’000 £’000
assets
noncurrent assets
investments 12 31209 28395
property plant and equipment 13 4
deferred tax 19 350 
31563 28395
current assets
trade and other receivables 15 2673 948
cash and cash equivalents 16 360 275
3033 1223
total assets 34596 29618
issued capital and reserves attributable to owners of the parent
share capital 20 448 399
share premium reserve 20914 17102
merger reserve 3 12483 12483
share options reserve 21 1352 1257
accumulated loss 4292 2303
total equity 30905 28938
liabilities
noncurrent liabilities
loans and borrowings 17 951 
current liabilities
loans and borrowings 17 2059 
trade and other payables 18 681 680
2740 680
total liabilities 3691 680
total equity and liabilities 34596 29618
the accompanying accounting policies and notes form an integral part of these financial statements
these financial statements were approved and authorised for issue by the board of directors on 24 may 2013 and were signed on its
behalf by
david m anderson
director
company registration no 07440902 england and wales
strategic minerals plc annual report 2012
as at 31 december 2012 30
consolidated statement of cash flow
as restated
year to period to
31 december 2012 31 december 2011
notes £’000 £’000
cash flows from operating activities 
loss before tax 4993 3415
adjustments for
depreciation of tangible fixed assets 86 1
amortisation of intangible assets 810 
exploration and evaluation expenditure 835 
loss on disposal 11 
increase in inventory 1722 
increase in trade and other receivables 680 58
increase in trade and other payables 1845 521
share based payment expense 95 1257
finance expense 714 33
finance income  24
cash absorbed by operating activities 2999 1685
finance income 8 24
finance expense 8 111 33
net cash absorbed by operating activities 3110 1694
investing activities
acquisition of subsidiary net of cash acquired 12  122
acquisition of intangible fixed assets 113 876
acquisition of tangible fixed assets 646 1436
cash absorbed by investing activities 759 2190
financing activities
net proceeds from issue of equity share capital 3006 2283
net proceeds from borrowings 1335 1499
net cash from financing activities 4341 3782
net increase  decrease in cash and cash equivalents 472 102
cash and cash equivalents at beginning of period 299 410
effects of exchange rate changes on the balance of cash held in foreign currencies 8 9
cash and cash equivalents at end of period 763 299
the accompanying accounting policies and notes form an integral part of these financial statements
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
31
company statement of cash flow
as restated
year to period to
31 december 2012 31 december 2011
notes £’000 £’000
cash flows from operating activities 
loss before tax 2339 2303
adjustments for
impairment to receivables from subsidiary undertakings 585 
increase in trade and other receivables 648 948
increase in trade and other payables 83 680
share based payment expense 95 1257
finance expense 714 33
finance income  24
cash absorbed by operating activities 1510 1305
finance income 8 24
finance expense 8 111 33
net cash absorbed by operating activities 1621 1314
investing activities
acquisition of tangible assets 4 
cash absorbed by investing activities 4 
financing activities
net proceeds from issue of equity share capital 3006 1589
net proceeds from borrowings 1488 
advances to subsidiary undertakings 2784 
net cash from financing activities 1710 1589
net increase in cash and cash equivalents 85 275
cash and cash equivalents at beginning of period 275 
cash and cash equivalents at end of period 360 275
the accompanying accounting policies and notes form an integral part of these financial statements
strategic minerals plc annual report 2012
for the year ended 31 december 2012 32
consolidated statement of changes in equity
share share foreign
share premium merger options other exchange accumulated total 
capital reserve reserve reserve reserves reserve loss equity
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
balance as at 
30 november 2010  715  46  180 581
loss for the period  3415 3415
foreign exchange translation 571  571
total comprehensive income
for the period 571 3415 2844
shares issued in the year 305 16387     16692
shares issued for 
acquisition of ebony 
iron pty 
restated – note 3 94  12483    12577
share based payments
restated – note 3   1211  1211
group reorganisation    14363  14363
balance at 
31 december 2011
as restated 399 17102 12483 1257 14363 571 3595 13854
loss for the year  4358 4358
foreign exchange translation 676  676
total comprehensive income 
for the year 676 4358 5034
shares issued in the year 49 4031     4080
expenses of share issue  219     219
share based payments  95  95
balance at 
31 december 2012 448 20914 12483 1352 14363 105 7953 12776
all comprehensive income is attributable to the owners of the parent
share capital is the amount subscribed for shares at nominal value share premium reserve represents the excess of the amount subscribed
for share capital over the nominal value of these shares net of share issue expenses 
merger reserve arises from the 100 acquisition of ebony iron pty limited on 2 september 2011 whereby the excess of the fair value of the
issued ordinary share capital issued over the nominal value of these shares is transferred to this reserve in accordance with section 612 of the
companies act 2006
share option reserve relates to increases in equity for services received in equitysettled share based payment transactions
other reserves consist of an adjustment arising from the group reorganisation in 2011 being the formation of a new holding company for iron
glen holdings limited by way of a share for share issue and is the difference between consideration given and net assets of the company at
the date of acquisition foreign exchange reserve occurs on consolidation of the translation of the subsidiaries balance sheets at the closing
rate of exchange and their income statements at the average rate accumulated loss represents the cumulative loss of the group attributable
to equity shareholders
the accompanying accounting policies and notes form an integral part of these financial statements
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
33
company statement of changes in equity
share share
share premium merger options accumulated total 
capital reserve reserve reserve loss equity
£’000 £’000 £’000 £’000 £’000 £’000
balance as at 
30 november 2010     
loss for the period 2303 2303
total comprehensive income
for the period 2303 2303
shares issued in the year 305 17102  17407
shares issued for acquisition of ebony iron pty 94  12483  12577
restated – note 3
share based payments restated – note 3   1257  1257
balance at 
31 december 2011
as restated 399 17102 12483 1257 2303 28938
loss for the year 1989 1989
total comprehensive income 
for the year 1989 1989
shares issued in the year 49 4031  4080
expense of share issue  219  219
share based payments   95  95
balance at 
31 december 2012 448 20914 12483 1352 4292 30905
all comprehensive income is attributable to the owners of the parent company
the accompanying accounting policies and notes form an integral part of these financial statements
strategic minerals plc annual report 2012
for the year ended 31 december 2012
      34
notes to the financial statements
1 significant accounting policies
basis of preparation
the principal accounting policies adopted in the preparation of the financial statements are set out below the policies have been
consistently applied to all the years presented unless otherwise stated
these financial statements have been prepared in accordance with international financial reporting standards international accounting
standards and interpretations collectively ifrss issued by the international accounting standards board iasb as adopted by the
european union adopted ifrss 
the preparation of financial statements in compliance with adopted ifrs requires the use of certain critical accounting estimates it also
requires group management to exercise judgment in applying the groups accounting policies the areas where significant judgments
and estimates have been made in preparing the financial statements and their effect are disclosed in note 2
going concern basis
these financial statements have been prepared on the assumption that the group is a going concern
when assessing the foreseeable future the directors have looked at the group’s working capital requirements for the period to 30 june
2014 at 31 december 2012 the group had net current borrowings of £1296000 and net current liabilities of £1202000 in february
2013 the company successfully completed a placement of shares raising £42m net of expenses the proceeds of which in part was
used to settle borrowings and trade payables at year end
after making enquiries the directors believe that the company has adequate resources to continue in operational existence for the
foreseeable future accordingly they continue to adopt the going concern basis in preparing the financial statements
were the group to be unable to continue as a going concern adjustments may have to be made to the statement of financial position of
the group to reduce the statement of financial position values of assets to their recoverable amounts to provide for future liabilities that
might arise and to reclassify noncurrent assets and longterm liabilities as current assets and liabilities
new and amended standards adopted by the company
there are no ifrs’s or ifric interpretations that are effective for the first time in this financial period that would be expected to have a
material impact on the group 
standards interpretations and amendments to published standards that are not yet effective 
the following new standards amendments to standards and interpretations have been issued but are not effective for the financial year
beginning 1 january 2012 and have not been early adopted
• ifrs 9 financial instruments classification and measurement as issued reflects the first phase of the iasb work on the replacement
of ias 39 and applies to classification and measurement of financial assets as defined in ias 39 the standard is effective for annual 
periods beginning on or after 1 january 2015 in subsequent phases the iasb will address classification and measurement of 
financial liabilities hedge accounting and derecognition the adoption of the first phase of ifrs 9 might have an effect on the 
classification and measurement of the company’s assets at this juncture it is difficult for the company to assess the potential impact 
on its financial position and performance
there are no other ifrs’s or ifric interpretations that are not yet effective that would be expected to have a material impact on the
group 
basis of consolidation
where the company has the power either directly or indirectly to govern the financial and operating policies of another entity or business
so as to obtain benefits from its activities it is classified as a subsidiary the consolidated financial statements present the results of the
company and its subsidiaries the group as if they formed a single entity intercompany transactions and balances between group
companies are therefore eliminated in full
the consolidated financial statements incorporate the results of business combinations using the purchase method in the statement of
financial position the acquirees identifiable assets liabilities and contingent liabilities are initially recognised at their fair values at the
acquisition date the results of acquired operations are included in the consolidated statement of comprehensive income from the date
on which control is obtained they are deconsolidated from the date control ceases
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
35
goodwill
goodwill represents the excess of the cost of a business combination over the total acquisition date fair value of the identifiable assets
liabilities and contingent liabilities acquired 
cost comprises the fair value of assets given liabilities assumed and equity instruments issued plus the amount of any noncontrolling
interests in the acquiree plus if the business combination is achieved in stages the fair value of the existing equity interest in the
acquiree contingent consideration is included in cost at its acquisition date fair value and in the case of contingent consideration
classified as a financial liability remeasured subsequently through profit or loss direct costs of acquisition are recognised immediately
as an expense
goodwill is capitalised as an intangible asset with any impairment in carrying value being charged to the consolidated statement of
comprehensive income where the fair value of identifiable assets liabilities and contingent liabilities exceed the fair value of
consideration paid the excess is credited in full to the consolidated statement of comprehensive income on the acquisition date
impairment of nonfinancial assets excluding inventories
impairment tests on goodwill and other intangible assets with indefinite useful economic lives are undertaken annually at the financial year
end other nonfinancial assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying
amount may not be recoverable where the carrying value of an asset exceeds its recoverable amount ie the higher of value in use and
fair value less costs to sell the asset is written down accordingly
where it is not possible to estimate the recoverable amount of an individual asset the impairment test is carried out on the smallest
group of assets to which it belongs for which there are separately identifiable cash flows its cash generating units ‘cgus’ goodwill is
allocated on initial recognition to each of the groups cgus that are expected to benefit from the synergies of the combination giving rise
to the goodwill
impairment charges are included in profit or loss except to the extent they reverse gains previously recognised in other comprehensive
income an impairment loss recognised for goodwill is not reversed
externally acquired intangible assets 
externally acquired intangible assets are initially recognised at cost and subsequently amortised over their useful economic lives 
intangible assets are recognised on business combinations if they are separable from the acquired entity or give rise to other contractual
or legal rights the amounts ascribed to such intangibles are arrived at by using appropriate valuation techniques see section related to
critical estimates and judgements below
the significant intangibles recognised by the group their useful economic lives and the methods used to determine the cost of
intangibles acquired in a business combination are as follows
exploration and evaluation assets
the group has continued to apply the ‘successful efforts’ method of accounting for exploration and evaluation “ee” costs having
regard to the requirements of ifrs 6 ‘exploration for the evaluation of mineral resources’ 
the successful efforts method means that only the costs which relate directly to the discovery and development of specific mineral
reserves are capitalised such costs may include costs of license acquisition technical services and studies exploration drilling and
testing but do not include costs incurred prior to having obtained the legal rights to explore the area under successful efforts accounting
exploration expenditure which is general in nature is charged directly to the income statement and that which relates to unsuccessful
exploration operations though initially capitalised pending determination is subsequently written off only costs which relate directly to
the discovery and development of specific commercial mineral reserves will remain capitalised and to be depreciated over the lives of
these reserves exploration and evaluation costs are capitalised within intangible assets costs incurred prior to obtaining legal rights to
explore are expensed immediately to the income statement
all lease and licence acquisition costs geological and geophysical costs and other direct costs of exploration evaluation and
development are capitalised as intangible or property plant and equipment according to their nature intangible assets comprise costs
relating to the exploration and evaluation of properties which the directors consider to be unevaluated until reserves are appraised as
commercial at which time they are transferred to tangible assets as ‘developed mineral assets’ following an impairment review and
depreciated accordingly where properties are appraised to have no commercial value the associated costs are treated as an impairment
loss in the period in which the determination is made 
strategic minerals plc annual report 2012 36
notes to the financial statements continued
costs are amortised on a tenement by tenement unit of production method based on commercial proven and probable reserves
contractual relationship
the contractual relationship recognised as a result of the acquisition of ebony iron pty limited see note 3 has been valued using
estimated discounted cash flow and is being amortised over the term of the contract
property plant and equipment
the annual rate of depreciation for each class of depreciable asset is
office equipment – 3 years straight line
leasehold improvements – 10 years straight line
rail infrastructure – on a per ton basis for inventory transported by rail in the year
the carrying value of tangible fixed assets is assessed annually and any impairment is charged to the statement of comprehensive
income
investments
investments are stated at cost less provision for any impairment in value
trade receivables
trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method
less provision for impairment a provision for impairment is established when there is objective evidence that the group will not be able to
collect all amounts due according to the original terms of the receivables significant financial difficulties of the debtor probability that the
debtor will enter bankruptcy or financial reorganisation and default or delinquency in payments are considered indicators that the trade
receivable is impaired
cash and cash equivalents
cash and cash equivalents include cash in hand deposits held on call with banks other shortterm highly liquid investments with original
maturities of three months or less and bank overdrafts bank overdrafts are shown within borrowings in current liabilities on the
statement of financial position
revenue
revenue from the sale of magnetite is recognised when the group has transferred the significant risks and rewards of ownership to the
buyer and it is probable that the group will receive the previously agreed upon payment these criteria are considered to be met when the
goods are delivered to the buyer being the point of shipment for export sales and the point of leaving the mine gate for domestic sales to
the us market
inventories
inventories are initially recognised at cost and subsequently at the lower of cost and net realisable value cost comprises all costs of
purchase costs of conversion and other costs incurred in bringing the inventories to their present location and condition
taxation
income tax
income tax expense represents the sum of the tax currently payable and deferred tax
the tax currently payable is based on taxable profit for the year taxable profit differs from profit as reported in the same income
statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that
are never taxable or deductible the company’s liability for current tax is calculated using tax rates that have been enacted or
substantively enacted by the statement of financial position date 
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
37
deferred tax
deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the consolidated statement of
financial position differs from its tax base except for differences arising on
• the initial recognition of goodwill
• the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction 
affects neither accounting or taxable profit and
• investments in subsidiaries and jointly controlled entities where the group is able to control the timing of the reversal of the difference 
and it is probable that the difference will not reverse in the foreseeable future
recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which
the difference can be utilised
the amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the reporting date
and are expected to apply when the deferred tax liabilitiesassets are settledrecovered 
deferred tax assets and liabilities are offset when the group has a legally enforceable right to offset current tax assets and liabilities and
the deferred tax assets and liabilities relate to taxes levied by the same tax authority on either
• the same taxable group company or
• different group entities which intend either to settle current tax assets and liabilities on a net basis or to realise the assets and settle 
the liabilities simultaneously in each future period in which significant amounts of deferred tax assets or liabilities are expected to be 
settled or recovered
fair values 
the carrying amounts of the financial assets and liabilities such as cash and cash equivalents receivables and payables of the group at
the statement of financial position date approximated their fair values due to the relatively short term nature of these financial
instruments
sharebased compensation
the fair value of the employee and suppliers services received in exchange for the grant of options and warrants is recognised as an
expense the total amount to be expensed over the vesting year is determined by reference to the fair value of the options and warrants
granted excluding the impact of any nonmarket vesting conditions for example profitability and sales growth targets nonmarket
vesting conditions are included in assumptions about the number of options and warrants that are expected to vest at each statement of
financial position date the entity revises its estimates of the number of options and warrants that are expected to vest it recognises the
impact of the revision to original estimates if any in the income statement with a corresponding adjustment to equity
the proceeds received net of any directly attributable transaction costs are credited to share capital nominal value and share premium
when the options and warrants are exercised 
the fair value of sharebased payments recognised in the statement of comprehensive income is measured by use of the black scholes
model which takes into account conditions attached to the vesting and exercise of the equity instruments the expected life used in the
model is adjusted based on management’s best estimate for the effects of nontransferability and exercise restrictions the share price
volatility percentage factor used in the calculation is based on management’s best estimate of future share price behaviour and is
selected based on past experience future expectations and benchmarked against peer companies in the industry
equity instruments 
ordinary shares are classified as equity
incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction net of tax from proceeds
provisions
provisions are recognised when the company has a present obligation as a result of a past event and it is probable that the company will
be required to settle that obligation provisions are measured at the directors’ best estimate of the expenditure required to settle the
obligation at the statement of financial position date and are discounted to present value where the effect is material
strategic minerals plc annual report 2012 38
notes to the financial statements continued
financial instruments
nonderivative financial instruments comprise investments in equity trade and other receivables cash and cash equivalents loans and
borrowings and trade and other payables
nonderivative financial instruments are recognised initially at fair value plus for instruments not at fair value through profit or loss any
directly attributable transactions costs 
a financial instrument is recognised when the group becomes a party to the contractual provisions of the instrument financial assets are
derecognised if the group’s contractual rights to the cash flows from the financial assets expire or if the group transfers the financial
assets to another party without retaining control or substantially all risks and rewards of the asset regular purchases and sales of
financial assets are accounted for at trade date ie the date that the group commits itself to purchase or sell the asset financial
liabilities are derecognised if the group’s obligations specified in the contract expire or are discharged or cancelled 
foreign currencies
transactions entered into by group entities in a currency other than the currency of the primary economic environment in which they
operate their functional currency are recorded at the rates ruling when the transactions occur foreign currency monetary assets and
liabilities are translated at the rates ruling at the reporting date exchange differences arising on the retranslation of unsettled monetary
assets and liabilities are recognised immediately in profit or loss except for foreign currency borrowings qualifying as a hedge of a net
investment in a foreign operation in which case exchange differences are recognised in other comprehensive income and accumulated in
the foreign exchange reserve along with the exchange differences arising on the retranslation of the foreign operation
exchange gains and losses arising on the retranslation of monetary available for sale financial assets are treated as a separate
component of the change in fair value and recognised in profit or loss exchange gains and losses on nonmonetary available for sale
financial assets form part of the overall gain or loss recognised in respect of that financial instrument 
on consolidation the results of overseas operations are translated into sterling at rates approximating to those ruling when the transactions
took place all assets and liabilities of overseas operations including goodwill arising on the acquisition of those operations are translated at
the rate ruling at the reporting date exchange differences arising on translating the opening net assets at opening rate and the results of
overseas operations at actual rate are recognised in other comprehensive income and accumulated in the foreign exchange reserve 
on disposal of a foreign operation the cumulative exchange differences recognised in the foreign exchange reserve relating to that
operation up to the date of disposal are transferred to the consolidated statement of comprehensive income as part of the profit or loss
on disposal
management of capital
the group’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due the
principal liabilities of the group arise in respect of the costs of financing working capital as inventory is built up prior to sale
the board receives cash flow projections on a monthly basis as well as information on cash balances the board will not commit to
material expenditure prior to being satisfied that sufficient funding is available to the group to finance the planned programmes 
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
39
2 critical accounting estimates and judgements
the group makes certain estimates and assumptions regarding the future estimates and judgements are continually evaluated based on
historical experience and other factors including expectations of future events that are believed to be reasonable under the circumstances
in the future actual experience may differ from these estimates and assumptions the estimates and assumptions that have a significant risk
of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below
judgements
a revenue recognition
the eventual price invoiced for export sales is determined based on a formula linked to the platts iodex 62 fe cfr china in 
months following the month of sale and quality analysis post loading for 2012 the amount recorded as revenue is the final agreed 
invoice value so no judgement has been applied in recording revenue for the year in future periods an estimate of future platts iodex 
62 fe cfr china price may be necessary in determining the amount of revenues recognised
estimates and assumptions
b carrying value of intangible assets
in assessing the continuing carrying value of the exploration and evaluation costs carried the company has made an estimation of the
value of the underlying tenements and exploration licenses held for which further details are given in note 12
in assessing the continuing carrying value of the other intangible asset being the contractual relationship acquired on the acquisition 
of ebony iron pty limited the key estimate and assumption made in the valuation model adopted has been estimated platts iodex 
62 fe cfr china price over the term of the contract the quantity of material is known and our direct costs have been assumed to 
be fixed at current levels the variable is thus the market price of magnetite for both 62 fe and the discount for the lower grade 
material at 59 fe the material we have been granted exclusive rights over contains in total approximately 800000 tonnes at 
642 fe and approximately 770000 tonnes at an average grade of 591 fe these future prices cannot be forecast with certainty 
as changes are determined by reference to external market forces the price range used in considering whether impairment arises in 
management’s estimates is based on the range of available external forecasts
c share based payments
the fair value of share based payments recognised in the income statement is measured by use of the black scholes model which 
takes into account conditions attached to the vesting and exercise of the equity instruments the expected life used in the model is 
adjusted based on management’s best estimate for the effects of nontransferability exercise restrictions and behavioural 
considerations the share price volatility percentage factor used in the calculation is based on management’s best estimate of future 
share price behaviour based on past experience future expectations and benchmarked against peer companies in the industry 
strategic minerals plc annual report 2012 40
notes to the financial statements continued
3 prioryear adjustment 
during the year the directors commenced a review of the accounting for the acquisition of ebony iron pty limited in 2011 concurrently the
conduct committee of the financial reporting council “frc” raised a number of queries regarding the accounting for the transaction and
other matters as a result of our review and correspondence with the frc the directors have concluded on the need to restate the 2011
comparatives amounts to these accounts as shown below
a reconciliation of the comparative amounts previously stated in the consolidated statements to restated comparative amounts for the
consolidated statement of comprehensive income and consolidated statement of financial position is provided below a detailed description
of each adjustment then follows there is no restatement required of the consolidated statement of financial position at the beginning of 2011
as previously
stated adjustments restated
£’000 £’000 £’000
assets
noncurrent assets
goodwill 8744 8744 
intangible assets 1281 16669 17950
10025 7925 17950
property plant and equipment 1519  1519
11544 7925 19469
current assets
trade and other receivables 503  503
cash and cash equivalents 299  299
802  802
total assets 12346 7925 20271
equity and liabilities
share capital 399  399
share premium reserve 26408 9306 17102
merger reserve  12483 12483
foreign exchange reserve 9 580 571
share options reserve 1062 195 1257
other reserves 14363  14363
accumulated loss 3400 195 3595
total equity 10097 3757 13854
liabilities
current liabilities
loans and borrowings 1500  1500
trade and other payables 749  749
2249  2249
noncurrent liabilities
deferred tax liability  4168 4168
total equity and liabilities 12346 7925 20271
strategic minerals plc annual report 2012
for the year ended 31 december 2012      
overview performance governance financial statements
41
as previously
stated adjustments restated
£’000 £’000 £’000
revenue  
cost of sales  
gross profit  
aim admission expenses 581  581
share based payments 1062 195 1257
expenses on acquisition of ebony iron pty limited 258  258
administrative expenses 1310 195 1310
loss from operations 3211 195 3406
finance income 24  24
finance expense 33  33
3220 195 3415
income tax benefitexpense  
loss for the period 3220 195 3415
prioryear adjustments description 
a revision to acquisition accounting for ebony iron pty limited
on 2 september 2011 the company acquired 100 of the issued share capital of ebony iron pty limited by the issuance of 
94000000 ordinary shares in the company in the accounts to 31 december 2011 the fair value of the consideration was calculated 
using 10p per share being the amount stated in the acquisition agreement and the difference between this consideration and the fair 
value of the identifiable net assets acquired was treated as goodwill
ifrs 3 revised business combinations require the consideration transferred in a business combination to be measured at the 
acquisition date fair value on 2 september 2011 the market price of the company’s shares was 1338p the use of 10p per share 
was thus an error the increase in the fair value of the consideration of £3177000 is reflected in the table above this also gives rise 
to an adjustment to the company statement of financial position see below to increase the carrying value of the cost of investment
following a reassessment of the net assets acquired the directors have concluded that an intangible asset should have been 
recognised being a contract entered into by a wholly owned subsidiary of ebony iron pty limited southern minerals group llc 
pursuant to which it had the exclusive rights to market a magnetite stockpile held at the cobre mine in new mexico as referred to in 
other parts of these financial statements the fair value of this contract at the date of acquisition has been assessed as £15895000 
with the result that no goodwill now arises from this acquisition
in accordance with ias 21 the effects of changes in foreign exchange rates the carrying value of the intangible asset has been 
expressed in the functional currency of southern minerals group llc being the us dollar and translated at closing rate which has 
resulted in the foreign exchange adjustments reflected in notes 12 and related note 19 deferred tax
b revision to deferred tax
a deferred tax liability of £4168000 has been recognised in respect of the temporary difference arising on the intangible asset 
recognised on the acquisition of ebony iron pty limited see a above
c accounting for a merger reserve
as the company acquired over 90 of the equity holding in ebony iron pty limited section 612 of the companies act 2006 applies 
and requires the difference between the fair value of consideration received and nominal value of the shares issued to be transferred 
to a merger reserve rather than the share premium reserve  after adjusting for the £3177000 noted in a above an amount of 
£12483000 has been transferred to the merger reserve  this also gives rise to a similar adjustment to the company statement of 
financial position as shown below
strategic minerals plc annual report 2012 42
notes to the financial statements continued
d revision to sharebased payment expense
in the period to 31 december 2011 warrants were issued to various suppliers in settlement of services provided and share options 
granted to certain of the group’s directors and key management personnel  in valuing these warrants and options using the black
scholes option pricing model an expected volatility of 10 was used  in the opinion of the directors this was inappropriate and an 
appropriate rate would be 55  this has led to the share based payment charge for 2011 increasing by £195000 to £1257000
e there was no effect on the consolidated statement of cash flow as a result of the above amendments other than to increase the loss 
before tax and the amount of share based payment expenses shown in the reconciliation to cash absorbed by operating activities
the impact on the company statement of financial position is set out below  
as previously
stated adjustments restated
£’000 £’000 £’000
assets
noncurrents assets
investments 25218 3177 28395
currents assets
trade and other receivables 948  948
cash and cash equivalents 275  275
1223  1223
total assets 26441 3177 29618
equity and liabilities
share capital 399  399
share premium reserve 26408 9306 17102
merger reserve  12483 12483
share options reserve 1062 195 1257
accumulated loss 2108 195 2303
total equity 25761 3177 28938
liabilities
current liabilities
trade and other payables 680  680
total equity and liabilities 26441 3177 29618
4 financial instruments  risk management
the group is exposed the following financial risks
• credit risk
• foreign exchange risk
• other market price risk
• liquidity risk
in common with all other businesses the group is exposed to risks that arise from its use of financial instruments  this note describes
the groups objectives policies and processes for managing those risks and the methods used to measure them  further quantitative
information in respect of these risks is presented throughout these financial statements
there have been no substantive changes in the groups exposure to financial instrument risks its objectives policies and processes for
managing those risks or the methods used to measure them from last year unless otherwise stated in this note
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
43
principal financial instruments
the principal financial instruments used by the group from which financial instrument risk arises are
• trade and other receivables 
• cash and cash equivalents
• trade and other payables
• loans and borrowings
a summary of the financial instruments held by category is provided below
financial assets loans and receivables
2012 2011
£’000 £’000
group
cash and cash equivalents 763 299
trade and other receivables 963 403
total financial assets 1726 702
financial liabilities financial liabilities at
amortised cost
2012 2011
£’000 £’000
group
trade and other payables 2708 739
loans and borrowings 3010 1500
total financial liabilities 5718 2239
financial assets loans and receivables
2012 2011
£’000 £’000
company
cash and cash equivalents 360 275
trade and other receivables 561 4
amounts owed by subsidiary undertakings 4706 850
total financial assets 5627 1129
financial liabilities financial liabilities at
amortised cost
2012 2011
£’000 £’000
company
trade and other payables 665 410
loans and borrowings 3010 
total financial liabilities 3675 410
strategic minerals plc annual report 2012 44
notes to the financial statements continued
4 financial instruments  risk management continued
general objectives policies and processes
the board has overall responsibility for the determination of the groups risk management objectives and policies and whilst retaining
ultimate responsibility for them it has delegated the authority for designing and operating processes that ensure the effective
implementation of the objectives and policies to the groups finance function  
the overall objective of the board is to set policies that seek to reduce risk as far as possible without unduly affecting the groups
competitiveness and flexibility  further details regarding these policies are set out below
credit risk
credit risk is the risk of financial loss to the group if a customer or counterparty to a financial instrument fails to meet its contractual
obligations the group is mainly exposed to credit risk from credit sales  it is group policy implemented locally to assess the credit risk
of new customers before entering contracts  such credit ratings are taken into account by local business practices 
credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions for banks and financial
institutions only independently rated parties with minimum rating a are accepted
further disclosures regarding trade and other receivables which are neither past due nor impaired other than shown are provided in note 15
fair value and cash flow interest rate risk
all of the group’s and company’s borrowings are at fixed rate
foreign exchange risk
foreign exchange risk arises when individual group entities enter into transactions denominated in a currency other than their functional
currency the groups policy is where possible to allow group entities to settle liabilities denominated in their own functional currency
being pound sterling us dollar and australian dollar with the cash generated from their own operations where possible in that currency
where group entities have liabilities denominated in a currency other than their functional currency and have insufficient reserves of that
currency to settle them cash already denominated in that currency will where possible be transferred from elsewhere within the group
the parent company maintains us dollar and pounds sterling bank accounts sales to the export market are invoiced by the parent
company in us dollars and in the year the parent company entered into loans denominated in both us dollar and australian dollars
all receivables and payables are settled at the prevailing spot rate no forward contracts or other hedging instruments are currently
entered into the board monitors the total foreign exchange risk on a periodic basis but given the major in and out flows of cash are in us
dollars there is a natural hedge in place which minimises the overall exposure
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
45
as of 31 december the net exposure to foreign exchange risk was as follows 
functional currency of individual entity
sterling australian dollar total 
2012 2011 2012 2011 2012 2011
£’000 £’000 £’000 £’000 £’000 £’000
group
net foreign currency financial
assetsliabilities
australian dollar 257    257 
us dollar 514  310 317 824 317
total net exposure 257  310 317 567 317
functional currency of individual entity
sterling total 
2012 2011 2012 2011
£’000 £’000 £’000 £’000
company
net foreign currency financial
assetsliabilities
australian dollar 257  257 
us dollar 514  514 
total net exposure 257  257 
other market price risk
the group’s sale of magnetite to the export market as opposed to us domestic customers is priced by reference to the market quoted
platts iodex 62 fe cfr china price over which the group has no influence the group made its first export sale in the last quarter of
2012 market prices in 2012 were particularly volatile  in the last quarter the high and low prices were 14450 and 10650 respectively
a 5 movement in the platts iodex 62 fe cfr china price would have adjusted revenues for the year by £195000
liquidity risk
liquidity risk arises from the groups management of working capital and the finance charges and principal repayments on its debt
instruments it is the risk that the group will encounter difficulty in meeting its financial obligations as they fall due
the groups policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due  to achieve
this aim it seeks to maintain cash balances to meet expected requirements for a period of at least 30 days the group also seeks to
reduce liquidity risk by fixing interest rates and hence cash flows on its longterm borrowings
the board receives rolling cash flow projections on a monthly basis as well as information regarding cash balances the group does not
have any overdraft or other credit lines in place the liquidity risk of each group entity is managed centrally by the finance function
budgets are prepared locally and agreed by the board in advance enabling the groups cash requirements to be anticipated  
strategic minerals plc annual report 2012 46
notes to the financial statements continued
4 financial instruments  risk management continued
the following table sets out the contractual maturities representing undiscounted contractual cashflows of financial liabilities
group between between between
up to 3 3 and 12 1 and 2 2 and 5 over
months months year years 5 years
£’000 £’000 £’000 £’000 £’000
as at 31 december 2012
trade and other payables 2418 289  
loans and borrowings 1978 95 1046 
total  4396 384 1046 
group between between between
up to 3 3 and 12 1 and 2 2 and 5 over
months months year years 5 years
£’000 £’000 £’000 £’000 £’000
as at 31 december 2011
trade and other payables 739  
loans and borrowings 396  1104 
total  1135  1104 
company between between between
up to 3 3 and 12 1 and 2 2 and 5 over
months months year years 5 years
£’000 £’000 £’000 £’000 £’000
as at 31 december 2012
trade and other payables 667  
loans and borrowings 1978 95 1046 
total  2645 95 1046 
company between between between
up to 3 3 and 12 1 and 2 2 and 5 over
months months year years 5 years
£’000 £’000 £’000 £’000 £’000
as at 31 december 2011
trade and other payables 410  
loans and borrowings    
total  410   
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
47
capital disclosures
the group monitors adjusted capital which comprises all components of equity ie share capital share premium merger reserve and
accumulated loss 
the groups objectives when maintaining capital are
• to safeguard the entitys ability to continue as a going concern so that it can continue to provide returns for shareholders and 
benefits for other  stakeholders and
• to provide an adequate return to shareholders by pricing products with the level of risk
the group sets the amount of capital it requires in proportion to risk the group manages its capital structure and makes adjustments to
it in the light of changes in economic conditions and the risk characteristics of the underlying assets  
5 segment information
the group has three main segments
• southern minerals group llc smg  this segment is involved in the sale of magnetite to both the us domestic market and 
shipment of magnetite to port for onward export sale  
• head office  this segment incurs all the administrative costs of central operations and finances the group’s operations  a 
management fee is charged for certain of these expenses
• australia  this segment holds the tenements in australia and incurs all related operating costs
factors that management used to identify the groups reportable segments
the groups reportable segments are strategic business units that carry out different functions and operations and operate in different
jurisdictions 
operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decisionmaker the
chief operating decision maker has been identified as the management team including the executive chairman chief executive officer
and the finance director
measurement of operating segment profit or loss assets and liabilities
the group evaluates segmental performance on the basis of profit or loss from operations calculated in accordance with eu adopted
ifrs but excluding noncash losses such as the amortisation of intangible assets and the effects of sharebased payments
segment assets exclude tax assets and assets used primarily for corporate purposes segment liabilities exclude tax liabilities loans and
borrowings are allocated to the segments in which the borrowings are held details are provided in the reconciliation from segment assets
and liabilities to the group position
strategic minerals plc annual report 2012 48
notes to the financial statements continued
5 segment information continued
smg head office australia total
2012 2012 2012 2012
£’000 £’000 £’000 £’000
revenue 3754  3754
cost of sales 2851  2851
gross profit 903  903
exploration and evaluation expenditure  835 835
administrative expenses 689 1258 1495 3442
segment profit  loss from operations 214 1258 2330 3374
finance expense  714  714
segment profit  loss before taxation 214 1972 2330 4088
amortisation of intangible asset 810
sharebased payments charge 95
group loss before taxation 4993
smg head office australia total
2011 2011 2011 2011
£’000 £’000 £’000 £’000
revenue  
cost of sales  
gross profit  
aim admission expenses  581  581
expenses on acquisition of ebony iron pty limited  258  258
administrative expenses 214 174 922 1310
segment loss from operations 214 1013 922 2149
finance income  24 24
finance expense  33  33
segment loss before taxation 214 1046 898 2158
sharebased payments as restated 1257
group loss before taxation as restated 3415
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
49
as at 31 december 2012 smg head office australia total
£’000 £’000 £’000 £’000
additions to noncurrent assets excluding deferred tax 577 4 698 1279
reportable segment assets excluding deferred tax 19749 657 1459 21865
reportable segment liabilities 1290 3691 754 5735
deferred tax liabilities 3791
total group liabilities 9526
as at 31 december 2011 smg head office australia total
£’000 £’000 £’000 £’000
additions to noncurrent assets 18176  1085 19261
reportable segment assets 18189 373 1709 20271
reportable segment liabilities 1 680 1568 2249
deferred tax liabilities 4168
total group liabilities 6417
external revenue by noncurrent assets
location of customers               by location of assets
2012 2011 2012 2011
£’000 £’000 £’000 £’000
united states of america 1058  17248 18176
switzerland 2696   
australia   1118 1293
united kingdom   354 
3754  18720 19469
revenues from one customer total £2696000 2011  £nil  
strategic minerals plc annual report 2012 50
notes to the financial statements continued
6 operating loss
costs by nature year to period to
31 december 31 december
2012 2011
£’000 £’000
operating loss is stated after chargingcrediting
directors’ fees and emoluments 491 309
auditors’ remuneration see below 106 36
salaries wages and other staff related costs 459 195
depreciation expense 86 2
operating lease – land and buildings 59 46
legal professional and consultancy fees 1690 361
travelling and related costs 140 138
foreign exchange loss 64 16
other expenses 347 207
3442 1310
auditors’ remuneration comprises the following elements
fees charged by the group’s auditor
for the audit of the 2012 financial statements 26 21
amount charged for the prior year in excess of the amount provided 26 
fees charged by the auditor to the australian subsidiaries
for the audit of the 2012 financial statements 18 15
amount charged for the prior year in excess of the amount provided 36 
106 36
7  directors and employees
staff costs during the period year to period to
31 december 31 december
2012 2011
£’000 £’000
directors’ fees including consultancy fees 491 309
wages and salaries 459 177
social security costs 26 18
total staff costs 976 504
the average number of people including executive directors employed during the period was
2012 2011
number number
total 87
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
51
remuneration of the directors in the period is summarised as follows
salary and
directors’ consultancy benefits
fees fees in kind total
2012 2012 2012 2012
££ £ £
md bonthrone 24000  24000
s sanders 17500  17500
p  griffiths  116883  116883
ma borrelli 17500  17500
g cardona   
j fyfe  140000  140000
p harrison  140000  140000
d anderson  30000 5382 35382
total 59000 426883 5382 491265
salary and
directors’ consultancy benefits
fees fees in kind total
2011 2011 2011 2011
££ £ £
md bonthrone 1000 75667  76667
s sanders 32500 68333  100833
p  griffiths 1000 97834  98834
ma borrelli 32500  32500
g cardona   
j fyfe   
p harrison   
d anderson   
total 67000 241834  308834
directors’ remuneration shown above comprises all of the salaries directors’ fees consultancy fees and other benefits and emoluments
paid to the directors
the salary and consultancy fees to p griffiths during the period were paid by the company’s subsidiary iron glen holdings pty limited
each director is also paid all reasonable expenses incurred wholly necessarily and exclusively in the proper performance of his duties
8 finance income  expense
year to period to
31 december 31 december
2012 2011
£’000 £’000
bank interest received  24
loan interest and finance charges 714 33
714 9
strategic minerals plc annual report 2012 52
notes to the financial statements
9 taxation
year to period to
31 december 31 december
2012 2011
£’000 £’000
current tax expense 
deferred tax credit on amortisation of intangible 198 
deferred tax credit on losses 437 
635 
reconciliation of effective tax rates
loss before tax 4993 3415
tax using domestic rates of corporation tax of 24 2011 26 1198 888
effect of
expenses not deductible for tax purposes 24 515
losses carried forward 1174 373
deferred tax credit 635 
635 
the group has excess management expenses of £966000 2011 £327000 and unused losses to carry forward of £4712000 2011
£1109000 a deferred tax asset of £437000 arising from losses carried forward in the uk and usa at a rate of 24 and 40
respectively has been recognised  no deferred tax asset has been recognised for losses in australia as their recovery is not probable in
the foreseeable future  no deferred tax asset was recognised in 2011
10 parent company loss
as permitted by section 408 of the companies act 2006 the income statement of the parent company is not presented as part of these
financial statements  the parent company’s loss for the year was £1989000 2011  £2303000
11 loss per share
losses per ordinary share have been calculated using the weighted average number of shares in issue during the relevant financial year
the weighted average number of shares in issue during was basic 434531331 2011 – 278716703 adjusted for the historic share
reorganisation and consolidation fully diluted the weighted average was 434531331 2011 278716703 the loss for the financial
period was £4358000 2011 as restated  £3415000
due to the group’s results for the period the diluted earnings per share is deemed to be the same as the basic earnings per share
on 7 february 2013 the company issued a further 102666667 fully paid ordinary shares at 45pence per share
on 27 march 2013 the company received notice of the exercise of 3000000 warrants to subscribe for 3000000 new ordinary shares of
£0001 each
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
53
12 intangibles and investments
exploration other
mining evaluation intangible
tenements costs asset total
£’000 £’000 £’000 £’000
cost
at 1 december 2010  207  207
additions  876  876
acquisition of ebony iron pty  prior year adjustment note 3 198  15895 16093
foreign exchange  774 774
at 31 december 2011 198 1083 16669 17950
at 1 january 2012 198 1083 16669 17950
acquisition from quadrio resources pty limited  585  585
additions in the year  113  113
relinquished 198 637  835
foreign exchange  27 714 741
at 31 december 2012  1117 15955 17072
amortisation
at 1 december 2010   
amortisation   
at 31 december 2011   
at 1 january 2012   
amortisation  810 810
foreign exchange  18 18
at 31 december 2012  792 792
net book value
at 1 december 2010  207  207
at 31 december 2011 as restated 198 1083 16669 17950
at 31 december 2012  1117 15163 16280
ebony iron pty limited
on the 2 september 2011 the company acquired the entire share capital of ebony iron pty limited “ebony” a company registered in
australia
in the 2011 accounts the fair value of the consideration was calculated using the share price stated in the sale purchase agreement  as
noted in note 3 this was an error and the full description of the ensuing prior year adjustment is given in that note
in addition to the new ordinary shares ebony shareholders were entitled to in aggregate a further consideration of 5 million pounds
sterling to be satisfied by the allotment of 50 million new ordinary shares at an issue price of 10 pence per share subject to the
identification by a competent person of an indicated mineral resource that constitutes a probable ore reserve of not less than 200
million tonnes of iron ore individually or in aggregate before 31 december 2015 in identified tenements in the northern territory and
western australia  at 31 december 2011 the western australia tenements to which the contingent consideration attached had not been
acquired by the group and thus no potential liability existed at 31 december 2011  during the course of 2012 as explained further below
decisions were taken to relinquish or not pursue extensions following the expiry of license terms and as such  no contingent consideration
will be payable on those relinquished tenements  the directors do not consider any deferred consideration will be payable in the future
and will confirm this fact with ebony shareholders in advance of future actions  
strategic minerals plc annual report 2012 54
notes to the financial statements
the other intangible asset arises from the contractual relationship entered into by southern minerals group llc ‘smg’ an entity wholly
owned by ebony iron pty limited with a third party for the rights to a magnetite stockpile held at that party’s cobre mine in new mexico
usa  under the terms of the contract smg has exclusive rights to market approximately 1500000 tons of magnetite  the intangible
asset is being amortised on a per ton basis as the magnetite is sold
the list of identifiable assets acquired and liabilities assumed for ebony group is set out below and reflects the changes made as a result
of the prior year adjustment as set out in note 3
book and
fair value
£’000
intangible asset – contractual relationship 15895
exploration and evaluation asset 198
railroad construction and related assets 82
trade and other receivables 421
cash and cash equivalents 121
trade and other payables 166
deferred taxation 3974
net assets 12577
goodwill
purchase consideration 12577
fair value of net assets acquired 12577
goodwill acquired 
in the 4 months commencing 2 september 2011 the date the ebony group was acquired and consolidated in to the results of the
company’s reporting period to 31 december 2011 ebony contributed a loss of £457538 to the group’s losses  had the acquisition
occurred on 1 december 2010 the start of such reporting period the contribution to the group’s losses would have been a loss of
£1402457 in determining this amount the management had assumed that the fair value adjustments determined provisionally that
arose on the date of the acquisition would have been the same if the acquisition had occurred on the 1 december 2010 
mining tenements and exploration and evaluation costs
exploration and evaluation costs at 31 december 2012 comprise only the queensland sites held by iron glen pty limited  these costs
are not currently being amortised as there is no revenue being generated given that these assets are still in an early exploration phase 
in 2012 the group acquired certain other tenements known as the western australia tenements by the issue of shares to quadrio
resources pty limited on 25 january 2012  this did not represent the acquisition of a business but the acquisition of these assets only
the company issued 6000000 ordinary shares and with a market price of the company’s shares on that date of 975pence per share
recorded the fair value of the acquired assets at £585000
during the course of 2012 further costs were incurred on these tenements and other tenements acquired from ebony iron pty limited
however decisions were subsequently taken to relinquish or not pursue extensions following the expiry of license terms resulting in the
full carrying value of these tenements being impaired
the recoverability of the remaining carrying amount of the deferred exploration and evaluation expenditure on the queensland site is
dependent on successful development and commercial exploitation or alternatively the sale of the respective areas of interest
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
55
company loans to shares in
subsidiary subsidiary
undertakings undertakings total
£’000 £’000 £’000
cost
at 31 december 2011 as previously stated  25218 25218
prior year adjustment note 3  3177 3177
reclassification of amounts due from certain subsidiary undertakings 3399  3399
at 31 december 2011 as restated and 31 december 2012 3399 28395 31794
impairment
at 31 december 2011  
charge for the year 585  585
at 31 december 2012 585  585
carrying value
at 31 december 2011  28395 28395
at 31 december 2012 2814 28395 31209
in the opinion of the directors the aggregate value of the company’s investment in its subsidiary undertakings is not less than the amount
included in the balance sheet
holdings of more than 20
the company holds more than 20 of the share capital of the following companies
proportion
country of principal class of of ownership
incorporation activity share interest
subsidiary undertakings
iron glen holdings pty limited australia holding company ordinary 100
ebony iron pty limited australia holding company ordinary 100
iron glen pty limited i australia exploration ordinary 100
southern minerals group llc ii usa mining ordinary 100
jotanooka iron pty limited i australia exploration ordinary 100
dragon rock minerals pty limited i australia exploration ordinary 100
i held by iron glen holdings pty limited
ii held by ebony iron pty limited
strategic minerals plc annual report 2012 56
notes to the financial statements
13 tangible fixed assets
group railway office leasehold
infrastructure equipment improvements total
£’000 £’000 £’000 £’000
cost
at 1 december 2010 2 1 3
additions 1425 10 1 1436
on acquisition of subsidiary 82  82
at 31 december 2011 1507 12 2 1521
at 1 january 2012 1507 12 2 1521
additions 642 4 646
disposals  12  12
foreign exchange 65  65
at 31 december 2012 2084 42 2090
depreciation
at 1 december 2010 1  1
charge in the period  1 1
at 31 december 2011 1 1 2
at 1 january 2012 1 1 2
charge in the year 86  86
eliminated on disposals  1  1
at 31 december 2012 86 1 87
carrying value
at 1 december 2010 1 1 2
at 31 december 2011 1507 11 1 1519
at 31 december 2012 1998 41 2003
the tangible assets of the company relate to office equipment only
14 inventories
2012 2011
£’000 £’000
finished goods held for sale 1722 
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
57
15 trade and other receivables
2012 2011
£’000 £’000
group
trade receivables 466 
other receivables 700 503
less provision for impairment of other receivables 69 
1097 503
company
trade receivables 374 
amounts owed by subsidiary undertakings 2006 850
other receivables 293 98
2673 948
there were no trade or other receivables that were past due or impaired beyond the charge reflected above the trade and other
receivables are categorised as loans and other receivables and are not materially different to their carrying values
16 cash and cash equivalents
2012 2011
£’000 £’000
group
bank current accounts 763 299
company
bank current accounts 360 275
the group’s balances are held with wellknown and highly rated uk usa and australian banks
17 borrowings
the carrying values of the borrowings and their maturity are as follows
2012 2011
£’000 £’000
group
current 
repayable within one year
loan notes  1104
other loans 2059 396
2059 1500
company
current 
repayable within one year
other loans 2059 
2059 
the loan notes outstanding at 31 december 2011 were unsecured carried interest at 10 and were fully repayable at 31 december 2011 
strategic minerals plc annual report 2012 58
notes to the financial statements
on the 20 february 2012 the company refinanced the loan notes into the following
a an unsecured convertible loan note of £950670 effective from 2 january 2012 with an interest rate of 10 per cent per annum 
repayable on or before the 14 december 2014 the convertible loan note could be converted into the company’s ordinary shares on 
or before the repayment date at 15 pence per share and immediate repayment required if certain events outside the company’s 
control occurred
b the balance of the loan had been refinanced on similar terms as before but with a repayment date of 30 june 2012 which has 
subsequently been renegotiated to repay this balance in full by 31 december 2013
the other loans outstanding at 31 december 2012 were denominated in pounds sterling and us dollars with maturities of between 45
and 60 days from date of drawdown  
2012 2011
£’000 £’000
group and company
more than one year
repayable on 31 december 2014
loan notes 951 
951 
subsequent to the yearend the repayment terms of £791000 of these loan notes were renegotiated with a repayment schedule agreed
to repay this amount in full by 31 december 2013 and the convertible loan can no longer be converted into the company’s ordinary
shares
18 trade and other payables
2012 2011
£’000 £’000
group
trade payables 1529 400
applications for shares not allotted  270
other payables 320 10
accruals and deferred income 876 69
2725 749
company
trade payables 184 198
applications for shares not allotted  270
other payables 29 14
accruals and deferred income 468 198
681 680
book values approximate to fair value at 31 december 2012 and 2011
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
59
19 deferred tax
deferred tax is calculated in full on temporary differences under the liability method using a tax rate of 25  2011  25   the reduction
in the main rate of corporation tax to 23 was substantively enacted in july 2012 this new rate will be applied to deferred tax balances
which are expected to reverse after 1 april 2013 the date on which that new rate becomes effective
the movement on the deferred tax account is as shown below
deferred tax liability 2012 2011
£’000 £’000
at 1 january 4168 
recognised in profit and loss
tax credit 198 
3970 
arising on business combination note 3 and 12  3974
foreign exchange 179 194
at 31 december 3791 4168
deferred tax asset 2012 2011
£’000 £’000
at 1 january  
recognised in profit and loss
tax credit 437 
at 31 december 437 
of this total deferred tax asset £350000 arises in the company
20 share capital
2012 2012 2011 2011
no £’000 no £’000
allotted called up and fully paid
ordinary shares 448158893 448 399396393 399
on 10 november 2010 1 ordinary share of £100 was issued for cash  this was subdivided into 1000 ordinary shares of £0001 each
movements in 2011
during the period the company acquired all the shares in iron glen holdings limited “igh” by way of share for share exchange the
shares issued during the period to the shareholders of igh were as follows
• on 25 november 2010 138339979 ordinary shares were issued at £005 each
• on 15 january 2011 56155002 ordinary shares were issued at £005 each
• on 3 february 2011 all the issued ordinary shares of £0001 each was subdivided into 777983924 ordinary shares of £000025 each
• on 16 march 2011 340831564 ordinary shares were issued at £000025 each  
• on 29 march 2011 6706668 ordinary shares were issued at £000025 each 
• on 9 may 2011 all the issued ordinary shares of £000025 each were consolidated into 281380539 ordinary shares of £0001 each
on 3 june 2011 15000000 ordinary shares of £0001 each were issued for cash at £005 each
on 7 july 2011 1000000 ordinary shares of £0001 each and on 29 july 2011 a further 500000 ordinary shares of £0001 each were on
exercise of the same number of warrants at £005 each 
strategic minerals plc annual report 2012 60
notes to the financial statements
on 16 september 2011 94000000 ordinary shares of £0001 each were issued in exchange for all the issued share capital of ebony iron
pty limited
on 1 november 2011 7515854 ordinary shares for £0001 each were issued for cash at £01 each
movements in 2012
on 12 january 2012 3700000 ordinary shares of £0001 each were issued for cash at £010 each and a further 6000000 ordinary
shares were issued on 30 january 2012 to acquire tenement ownership rights from quadrio reserves pty limited pursuant to the
acquisition completed on 25 january at a price of £00975 per share
on 2 may 2012 the company completed a private placing of 39062500 ordinary shares of £0001 each at £008 per share to raise
£3125000 before expenses in addition participants in the placement were granted a one for one warrant on each share purchased
exercisable at £012 per share on or before 30 april 2014
post year end
on 7 february 2013 the company completed a private placing of 102666667 ordinary shares of £0001 each at £0045 per share to raise
£4200000 net of expenses
on 27 march 2013 the company received notice of the exercise of 3000000 warrants to subscribe for 3000000 new ordinary shares of
£0001 each
21 sharebased payments
the group has a shareownership compensation scheme for senior executives of the group whereby senior executives may be granted
options to purchase ordinary shares in the company
the group has on occasion issued warrants as detailed below to third parties in settlement of liabilities to strategic suppliers each share
warrant converts into one ordinary share of strategic minerals plc upon exercise no amounts are paid or payable by the recipient of the
warrant for the warrant the warrants carry neither rights to dividends nor voting rights at shareholders meetings
warrants
on 31 march 2011 23369988 warrants were issued to a supplier for services provided exercisable at £00186 per share on or before 31
march 2014
on 31 march 2011 3000000 warrants were issued to a supplier for services provided exercisable at £0001 per share on or before 31
march 2013  on 27 march 2013 the company received notice and these warrants were exercised for 3000000 new ordinary shares at
£0001 each
on 1 june 2011 4445708 warrants were issued to a supplier for services provided exercisable at £005 per share on or before 8 june
2012 on 7 july 2011 1000000 warrants were exercised at £005 per share and the remaining warrants were forfeited by the warrant
holder
on 30 june 2011 8921416 warrants were issued to a supplier for services provided exercisable at £005 per share on or before 29 june
2016 on 29 july 2011 500000 such warrants were exercised at £005 per share
on 1 march 2012 12000000 warrants were issued to a third party advisor to the company comprising 4000000 at an exercise price of
£012 per share 4000000 at an exercise price of £016 per share and 4000000 at an exercise price of £020 per share  the warrants
vest in quarterly periods commencing 1 june 2012 until 1 march 2015 at the rate of 1000000 warrants per quarter
on 3 may 2012 39062500 warrants were issued to participants in an equity placement of 39062500 new ordinary shares at £008 per
share at an exercise price of £012 per share and exercisable on or before 30 april 2014
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
61
the estimated fair value of the warrants issued during the year was calculated by applying the blackscholes option pricing model
expected volatility was originally stated at 10 but has been revised to 55 as this is considered more appropriate given the company
does not have a long representative period to consider and therefore the directors have also looked at comparable companies  the
assumptions used in the calculation were as follows
march 2011 march 2011 1 june 2011 may 2012 march 2012
warrants warrants warrants warrants warrants
share price at date of grant 500p 500p 725p 880p 1075p
exercise price 186p 010p 500p 1200p 1200p
expected volatility 55 55 55 55 55
expected dividend nil nil nil nil nil
contractual life 3 years 2 years 3 years 2 years 3 years
risk free rate 4 4 4 022 039
estimated fair value of each warrant 312p 451p 332p 029p 32p
number of outstanding warrants at 31 december 2012
exercised at exercise exercise
date of grant granted vested forfeits 311212 price vesting date
from to
310311 23369988  23369988 186p 310311 310314
310311 3000000  3000000 01p 310311 310313
010611 4445708 1000000 3445708  5p 010611 021211 12
020612 12
300611 8921416 500000  8421416 5p 300611 290616
010312 4000000  4000000 12p 010612 010313
010312 4000000  4000000 16p 010613 010314
010312 4000000  4000000 20p 010614 010315
030512 39062500  39062500 12p 030512 300414
90799612 1500000 3445708 85853904
options
on 31 march 2011 26639956 options were issued to the group’s directors and key management personnel exercisable at 31p per
share on or before 31 march 2014
number of outstanding options at 31 december 2011
exercised at exercise exercise
date of grant granted vested forfeits 311211 price period
from to
310311 26639956  26639956 31p 310311 310314
the estimated fair value of the warrants issued during the year was calculated by applying the blackscholes option pricing model the
assumptions used in the calculation were as follows
share price at date of grant 5p
exercise price 310p
expected volatility 55
expected dividend nil
contractual life 3 years
risk free rate 4
estimated fair value of each warrant 244p
strategic minerals plc annual report 2012 62
notes to the financial statements
the total number of share options and warrants outstanding at 31 december 2012 was 100493860
the share options outstanding at the yearend had a weighted average remaining contractual life of 730 days 2011 – 1096
22 commitments 
a operating lease commitments
the future aggregate minimum lease payments under noncancellable operating leases are as follows
2012 2011
£’000 £’000
group
within one year 54 37
b capital expenditure commitments
at 31 december 2011 southern minerals group llc had an outstanding commitment amounting to approximately usd1164914 
relating to the refurbishment of a spur rail line in new mexico
at 31 december 2012 no capital commitments existed
23 controlling party
there is no ultimate controlling party of the group strategic minerals plc acts as the parent company to iron glen holdings pty limited
ebony iron pty limited iron glen pty limited southern minerals group llc jotanooka iron pty limited and dragon rock minerals pty
limited
24 related party transactions 
transactions in 2012
during the year strategic minerals plc settled various expenses on behalf of ebony iron pty limited iron glen holdings and iron glen pty
limited in the amount of £1035967 £282003 and £603980 respectively  a loan previously held in ebony iron pty limited for
£1186000 was transferred to strategic minerals plc in the year  these loans are noninterest bearing unsecured and have no fixed
repayment and are at call  at 31 december 2012 these amounts all remained due to the company  in addition the company charged
£41854 to iron glen holdings pty limited for management fees for the year ended 31 december 2012
during the year the company advanced funds to southern minerals group llc of £4299077 to fund the working capital requirements of
that entity  southern minerals group llc also invoiced the company for the costs incurred in connection with the company’s export
sales at a margin  the company also charged management fees of £114016 for the year ended 31 december 2012  at 31 december
2012 the balance due from southern minerals group llc was £2006385 and is noninterest bearing and unsecured without any fixed
repayment terms
during the year £29716 was paid to sanders ortoli vaughnflam rosenstadt llp  a firm in which s sanders is a member in connection
with legal advice provided to the company  an amount of £17500 was also incurred in respect of directors’ fees 
during the year £20000 and £27000 was paid to riverwide capital partners limited a company in which j fyfe and p harrison have a
material interest for consultancy services and the provision of the company’s london office facilities respectively
during the year £17500 was paid to m a borelli a director of the company for directors’ fees  £24000 was paid to m d bonthrone a
director of the company for directors’ fees  an amount of £116883 was paid to p griffiths a director of the company for director and
consultancy fees  an amount of £140000 each paid to j fyfe and p harrison directors of the company for director and consultancy
fees
at 31 december 2012 an unsecured loan of £160000 was due to walter doyle a shareholder of the company on which interest of 10
is charged
strategic minerals plc annual report 2012
for the year ended 31 december 2012 overview performance governance financial statements
63
transactions in 2011
during the period ended 31 december 2011 strategic minerals plc loaned money to and paid expenses on behalf of ebony iron pty
limited iron glen holdings and iron glen pty limited in the amount of £586270 £156561 and £107478 respectively the loans are non
interest bearing unsecured have no fixed repayment term and are at call at the yearend these amounts all remained due to the
company in addition the company charged £249424 to iron glen holdings pty limited for management fees in the period ended 31
december 2011
during the period £32500 and £68333 were paid to sanders ortoli vaughnflam rosenstadt llp  in which s sanders a director of the
company is a member for directors’ fees and salary and consultancy fees respectively
during the period £1000 and £75667 were paid to m d bonthrone a director of the company for directors’ fees and consultancy fees
respectively 
during the period £32500 was paid to m a borrelli a director of the company for directors’ fees
during the period £1000 and £97834 were paid to p griffiths a director of the company for directors’ fees and consultancy fees
respectively
during the period £30207 and £7907 were paid to j felix and j bohringer directors of iron glen holdings pty limited for consultancy
and directors fees respectively
during the period £113353 was paid to jasp pty limited in which j peters is a director of ebony iron pty limited for consultancy fees
during the period £31909 was paid to d weidermeir a director of ebony iron pty limited for director’s fees
as at the 31 december 2011 an unsecured and interest free loan of £166719 was due to walter doyle a shareholder of the company
during the period an amount of £28003 was paid to walter doyle for consultancy services
25 events after the reporting period
on 7 february 2013 the company issued 102666667 fully paid ordinary shares at £0045 per share pursuant to an equity placement
which raised £42million net of expenses
on 27 march 2013 the company received notice of the exercise of 3000000 warrants to subscribe for 3000000 new ordinary shares of
£0001 each
strategic minerals plc annual report 2012 64
strategic minerals plc annual report 2012 overview performance governance financial statements
65
strategic minerals plc annual report 2012 66
corporate information
strategic minerals plc
riverwide house
6 masons yard
st jamess
london sw1y 6bu
nominated adviser and broker
allenby capital limited 
claridge house

Summary:
 06
executive chairman’s report
these achievements were accomplished
against a backdrop of continued high levels
of economic volatility across world markets
and uncertain commodity demand in the
world’s major markets debt issues in the
euro zone fragile recovery in the united
states and concerns over decelerating
growth levels in china and other emerging
global economies have contributed to a
challenging nearterm demand environment 
in the face of these challenges i am pleased
to report that strategic minerals performed
well during 2012 following my appointment
as executive chairman and the appointment
of paul harrison as chief executive officer in
may 2012 we embarked upon a nearterm
goal of achieving fullscale production at the
companys operations in new mexico and a
comprehensive evaluation of its exploration
assets in australia while i focused on the
companys operations in new mexico mr
harrison focused on a detailed review of our
pipeline of exploration iron ore assets in
queensland western australia and the
northern territory of australia raising funds
to deliver vital working capital for the
company and communication with our
shareholders and the wider investing
community
activities at the cobre stockpile were
strengthened by the conclusion of the
glencore offtake supply contract and the
completion of the south western railroad
railspur upgrade by ensuring the efficient
loading and shipment of deliveryready
magnetite at cobre strategic minerals has
successfully established a lowcost cash
generative operation that benefits from a
solid customer base and is well positioned to
achieve export sales in 2013 totalling
approximately 600000 dry metric tonnes
strategic minerals is uniquely positioned to
become a relevant supplier to the global iron
ore market
strategic minerals achieved key milestones in 2012 driven
by a commitment to commence fullscale production at the
cobre stockpile in new mexico increase resource
knowledge across our portfolio of australian exploration
stage projects and build sustainable value for shareholders 
strategic minerals plc annual report 2012
us35m
rail refurbishment completed at
cobre in 2012
48000
dry metric tonnes of magnetite
exported to glencore ag in
november 2012
100t
rail car shipments are now
possible from cobre overview performance governance financial statements
07
our cobre operations provide the launch
pad from which strategic can pursue the
acquisitions of additional magnetite
stockpiles and create longterm value in
that regard strategic minerals has a very
good relationship with the cobre mine
owner freeportmcmoran which we
believe puts strategic minerals in a good
position to secure rights to the additional
tailings at cobre if they become available as
well as potential opportunities at other
freeportmcmoran mines 
magnetite production cobre
our cobre operations in new mexico are
now in fullscale production 
strategic minerals’ deliveryready stockpile
of highgrade magnetite at the cobre
stockpile located at fiero in southern new
mexico is the byproduct of mining the
coppergoldmolybdenum copper porphyry
deposit until the mine’s closure in 2000
the beneficiated magnetite stockpile has a
jorc compliant resource of 800000
tonnes at a grade of 642 fe and 770000
tonnes at 591 fe and is highly saleable
in its existing state 
the cobre magnetite material is a treated
byproduct of copper mining and milling
activities from the 1970s after being
processed through ball mills to grind the
rock down to sand size p80 of 90 micron
the magnetite was recovered by magnetic
separation to form a magnetite
concentrate the magnetite has been
stockpiled in a dam for over 20 years and
contains minor and very thin seams of clay 
the clay seams along with trace amounts
of other minerals like garnet reduce the
iron grade of the product the clay and
other minerals are liberated and easily
removed during the screening process that
strategic minerals has established on site
the magnetite concentrate is non
hazardous and there is a full environmental
permit at cobre that enables the free
scoop screen and logistics operation to be
undertaken unhindered the material is a
highgrade magnetite feed stock suitable
for blending with lower iron grade or
coarser size materials to improve plant
efficiencies and throughput rates the
milling process reduced the particle size
down to 40150 micron therefore the
effort and energy required to refine the
magnetite product into a saleable product
has already been made
through the efforts of our team in new
mexico initial shipments took place early in
2012 with trucks collecting the magnetite
for domestic us consumers at mine gate
thus providing early cash flow for the
project and our first export shipment was
achieved in november
the most significant development step
came with the rehabilitation of the 63mile
10kilometre railspur link in june 2012
which enabled strategic minerals to
commence the supply of magnetite to the
export market the spur upgrade included
the installation of tie replacements
crossing and point changes some track
replacement and reballasting and
alignment 
the first test shipment by rail was
completed ahead of schedule in august
2012 this eight rail car shipment to the
port of guaymas in mexico was undertaken
to verify key equipment processes and
procedures ahead of fullscale commercial
rail shipments and to ensure robust
efficient rail freight operations i am pleased
to note that the strategic minerals
operational team quickly resolved all of the
minor operational glitches and equipment
issues that were encountered
having proven the logistics chain strategic
minerals focus turned to satisfying the terms
of the commercial contract signed with
glencore ag a subsidiary of worldleading
commodity supplier glencore international
plc which calls for the supply of 800000
wmts approximately 770000 dmt and
underlines the strength of the company’s
business model as a developer of value
adding deliveryready resources
the glencore contract first signed in march
2012 was renegotiated in the latter half of
the year to facilitate our first export in
november 2012 and again in january 2013
to facilitate regular shipments going
forward the november shipment of 48000
dmt of magnetite was the first export
shipment to be effected through the port of
guaymas and was a hugely important
milestone for the company marking the
end of the development stage and the
commencement of fullscale production
strategic minerals plc annual report 2012
   08
throughout 2013 we intend to complete
shipments averaging approximately 50000
dmt per month in 2012 we delivered over
20000 tonnes of magnetite to us domestic
customers at the mine gate in addition to
the 48000 dmt sold to glencore ag 
total revenues of £375 million were
achieved in 2012 resulting in a gross profit
of £09 million in our maiden year of
operations at cobre
the 2012 achievements at cobre have
demonstrated our ability to acquire and
develop projects to deliver shareholder
upside supplying high volumes of
magnetite ore to commercial customers
through the export market will enable us to
increase our revenues significantly in 2013
and beyond
governance
board composition is an essential
component in effective corporate
governance and ongoing strategic
planning i was pleased to join strategic
minerals’ board in the capacity of executive
chairman in may 2012 at the same time as
paul harrison was appointed chief
executive officer the year also saw the
appointments of david anderson as
finance director and george cardona who
joined the board as nonexecutive director
steven sanders who was previously
chairman of the company stepped down
in may 2012 and remained with the
company as a nonexecutive director until
april 2013 meanwhile executive director
matthew bonthrone and nonexecutive
director alex borrelli chose not to stand for
reelection at the annual general meeting
in june 2012 in order to focus on their
other business interests on behalf of the
board i would like to extend my thanks to
steven matthew and alex who made
substantial contributions to the
development of strategic minerals
particularly in bringing the company to the
aim market in 2011 
the board strives to achieve effective
decisionmaking and valueadding results
on behalf of the companys shareholders
the new executive composition of board
members has an appropriate balance of
skills and experience required to ensure the
continued fasttrack development of
strategic minerals in the global iron ore
sector and will as opportunities arise be
strengthened and enhanced we are
currently actively seeking additional non
executive directors with appropriate skills
and experience
outlook and prospects
despite the challenges of operating within a
volatile natural resource commodity
environment and concerns in some quarters
regarding the nearterm future of steel
making output in china the us and other
major manufacturing economies the outlook
for strategic minerals remains very
encouraging the glencore offtake contract
and other existing sales relationships in the
us give the company a stable platform for
growth 
we expect to sell 600000 dmt to the
export market during the year ending 31st
december 2013 whilst continuing sales to
the local market
strategic minerals remains committed to its
strategy of efficiently utilising capital to
generate substantial upside and position the
company for future growth as we progress
through 2013 i remain optimistic about the
prospects for our industry and our company
in particular  
i take this opportunity to thank our hard
working and dedicated team and
acknowledge the support provided to the
company by our stakeholders suppliers
and customers
james fyfe
executive chairman
24 may 2013
strategic minerals plc annual report 2012