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On the 24th August 2023, Colin announced the joint venture buy in in Zambia. We were promised:
- Over a 2 year period, no less than 2m USD spent in exploration
- Physical activity within the Licence boundaries (including but not limited to mapping, soil geochemistry, geophysics and drilling)
- Desktop studies, laboratory analysis and interpretation of data and results
6 and a half months later, we had a progress report RNS stating we have acquired "a major historic database created by Anglo American plc"
In this RNS, there was more space dedicated to Ivanhoe Mines than there was to anything that Xtract have done. (See RNS: https://www.lse.co.uk/rns/XTR/update-on-zambian-copper-joint-venture-strategy-t9boam901fuw0lm.html )
Now, almost 7 months to the day that this venture was announced to the market, have Xtract done anything apart from receiving a database?
Colin's wage over the last 7 months amounted to around 70k GBP. Apart from getting rid of our money making asset and the above acquisition of some data, how can he justify such slow progress?
We are now 99.8% of our way to a death by a thousand lashes. Throw us a bone, Colin. Get on with man. Do some work. Earn your salary!
Again I would agree with you,there had to be an exit strategy from Manica due to the volatlty of income due to weather,location,ground conditions ect.
However having paid $12 m for the resource would you say that was a fair return on the investment.
The spread of payments over an extended period of time that are not guaranteed makes the future uncertain.
This share now is a gamble on Zambia. I am reminded of a quote “the definition of a mine is 'a hole in the ground with a liar standing next to it.'” sorry that should be 'ole.
Yep I’ll have 50% as a special divy as his only going wiss the money up the wall. On top of that his still going have to do a placing. Regardless of suggesting Manica deal would avoid this. That was just convincing you to vote for deal whilst he bent your arm behind your back.
Who here would prefer at least 50% the Manica cash to be paid as a dividend and not wasted.
Just like if you do and comment if not.
The only way anyone makes anything here within 5 yrs is if he can sell bushranger. There is nothing else.
Is he actively trying to sell.
I presume you are joking. We got stitched up by Bird and now locked in. No value created for holders here. Its worth .085p and I'm down thousands.
Gold soaring....MMP rubing their hands!
Great shareholder value being created by the board!
I support your view OaW, particularly, as to where Xtr want to be positioned in the copper space. They would have gotten seriously bogged down with buying into the next mine phase.
The upfront costs and relative simpliciy of open-pit mining are much more economical than that of underground , however, initial costs can normally be offset easier from the revenue. Surface mining does have limitation’s though, so MMP likely believe that going underground has proved to be necessary in order to extend the life of mine to be able to exploit remaining ore reserves.
Underground mining’s higher production rates will alleviate the higher initial cost, making it ultimately a more cost-effective method, but it’s clear now that Xtr cannot take the risks involved to get there anyway, even if it was within the companies growth strategy, which it is clearly not. Just wanted to elaborate on your good post 👍
Mralien,
I happen to believe that CB has negotiated the best possible financial risk/reward outcome for Manica, and hence for XTR shareholders by this sale.
The option of a £1 re-purchase if the buyer cannot make payments at any time is no different from the abysmal result for shareholders if we had kept our stake in Manica, and it failed to deliver cash flows to make it viable. Further dilutive equity raises would certainly then arise, with no free capital for Cu exploration to top it all. The sp would crater on that scenario, rather than holding up at a £8mn MC. I have NEVER been a fan of the Manica project, and time has proved me right. BR was a way of getting attention away from that costly venture, and that has been mothballed. So now it's up to his home stomping ground in Zambia, back to Cu prospecting in a "hot" address currently.
Very good luck, CB. We need it. He needs it.
I think we are on the same page NicetoMichu.
I'm banking on getting my money back and hopefully more as CB winds up the Zambia PR Machine.
When it starts the MM's will take care of the rest and we should make money at the same time they do.
Fingers crossed.
''I think it's a sad demonstration of just how much damage to his reputation CB has done in the past 12 months or so.''
A look at the traded volume here for the last year brings this point brutally home. I struggle for words to verbalise how abject it has been.. you're talking very approx an average of 25 m shares traded - buys and sells - per month it that time....equating to a million odd shares a trading day.. accepting s/p was on average a fair bit higher than currently thru that time, you're still only talking v approx 15k gbp a days traded on average per day over the last year.. again that's buys and sells together ..frightening, really...
BUT
....peoples memories can be shorter than you'd think .. and new blood enters the market/sector as we go too .. and on fundamentals this seems a clear buy at these levels imho .... and meaningful news can beget meaningful volume pick ups.. and volume begets volume ..etc..
This time next year.
You know it makes sense.
Totally agree O& W "yes, if the POG and Manica mine's operating capability both hold up". What a crap deal, anything goes tits up and Manica is ours for £1
Parties are to be paid US$3.325 million in cash to settle all monies due under the “Mining Collaboration Agreement from MMP to Xtract and Explorator, Xtract's local Mozambique subsidiary, of which US$2 million has already been paid”
That’s what confused my recollection. My view remains same on the stock. Good luck all
No intention to mislead hope that’s obvs from previous posts.
Basically cautiously bullish and half in but want to see some more facts before filling up.
Older I stand corrected, thanks.
Was a reference to some funds already received, got my numbers out from memory.
Apols to all for error
"Explorator subsidiary cash received."
Eh? You mean the first down payment, only, or have I missed something? By 2027, yes, if the POG and Manica mine's operating capability both hold up.
I think it's a sad demonstration of just how much damage to his reputation CB has done in the past 12 months or so.
Until he proves otherwise it looks like the majority of shareholders and potential shareholders hold him in pretty low regard.
Exactly! Benefit of doubt no longer exists here.
But today XTR mcap under 8 million gbp vs
-15 million bucks owed
-Explorator subsidiary cash received
-BR asset and Copper price turned lot more bullish in last couple of weeks too
All the bullet points have to be worth than 8 million don’t they? Why is market not reacting? Surely CB track record and lack of clarity on timetable and funds.
I can’t see how he could need a placing but because of CB and vagaries so far I’ve only bought half of the total I’m willing to buy.
When it seems like an open goal it usually isn’t on risky penny shares. The market is always ahead of me so what does it know that I don’t.
Are MM’s seeing lots of sells from house broker firm? Just wondering
Was his lips moving
Jack that’s a good post
Market stubbornly refusing to price out a placing until it sees something in black and white that both clarifies finances and confirms Holders can look forward to a non-dilutive drill programme imo.
Aa it stands we could be forgiven fir thinking the Crown Jewels are gone where’s the formal plan to return value? Add the bird factor in and I can understand the markets reticence.
Flip side, if we can believe the sale of Manica rules out dilution down here this is chronically undervalued even vs cash!!
Thanks Flipper56, I'll have a look.
Https://twitter.com/ZaksTradersCafe/status/1770035712458391751?t=CaLvCJXZu5sqgm9YemUhtg&s=19
Jezzoo, Not sure if this helps but Colin gives his thoughts on copper near the end.
A good post NtoM, good points and I agree with all of it.
It does beg the question as to why the SP is were it is and I think it's purely down to the CB factor.
The SP tends to be artificially low when he's not communicating with the market and artificially high when he does.
We are experiencing the former and I'm just waiting for him to light the fire under the Zambia PR machine.
Come on CB, I've a house to buy and you've got my money tied up at a paper loss.
PS:
''A lot of money has been paid by private investors to fund these ‘companies’ but the more interesting question is how much money has been paid to Colin Bird, over these periods?''
For my info, what's your best rough guess on this number Kwadoko? ( and can you break that big figure out a bit too please)