Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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What we got?
The company have a good plan and a real opportunity to fulfil its objectives from free cash flow. If you have the belief that copper will see huge demands placed on it against increasing supply headwinds, then you can get behind that plan and now knowing it has breached US$10k.
You can clearly see the strategy in play and the path the management are taking with recent acquisitions through JV buy ins. For a junior, having significant cash flow guaranteed until ‘27 to cover operating expenses to further develop projects including drilling, sets Xtract apart from most of its peers without exception. This is being achieved and looking likely they will continue to do so without diluting shareholders unnecessarily.
With the wide spectrum of risk and the different types of company from across the whole resource sector, from pure exploration plays through to major producers. What that income means for Xtract attracting new investors, is that the company have moved out of the bottom tier of junior explorers that must make up 80-90%+ of all companies in the resource sector that ‘rely’ on raising capital from shareholders via allocation of new shares.
With positions prioritised in the highly prospective Western foreland, having that full operational control toward increasing license values, free from any controlling senior partner. Positions will be more vulnerable as prime targets for M&A activity when it intensifies.
Then there is BR and other exploration plays in Zambia that have huge upside potential and the chance for Xtr to have further cash flow from mining operations under their small mines strategy.
I’ll take the Pepsi challenge.
Top form NtM, that was a quick witted response.
Colin Bird is to be found hanging out around my nearest Little Waitrose and Tesco Metro - both on Old Brompton Road, South Kensington within 100 meters of Xtract HQ - so I'm doing some of that by betting here thanks Olderandwiser.
N2M, with that philosophy of life, you should instead be donating your capital bit by bit to your local homeless person outside your nearest Waitrose/Sainsbury/Morrisons, and see the tangible evidence of your generosity of spirit.
''Is he creating value for us or for someone else? You never really know with Colin..''
Interesting question Ben 'Owell...but I'll leave it to others to answer that...
As it's a slow day, and for my own entertainment, I'll look to derive my own question to answer from the above but taking out the ''for us or for someone else'' bit leaving : 'Is he creating value''?
To the extent of him directly and indirectly paying salaries for a bunch of people - who pay taxes, buy stuff etc - he is certainly contributing his bit to keeping Capitalism ticking along, in fairness to the man. And there's always the chance he'll find what he's looking for too .. and that becomes a production mine.. and the sundry further value add that can come off the back of that... as in Manica for a small eg and Kiwara for a big eg
And to the extent of us Shareholders getting lucky then we can/could derive financial benefit here too.. Granted the History of AIM especially generally shows that shareholders are often effectively 'donating' our money... in such circumstance I absolutely believe we're adding value to the World..as in us allowing all the above to ever have a chance of happening in the first place, so fair play to us all too. And whenever I get annoyed/incredulous/despairing of this game, I always fall back on the thought that by even playing this game, at least I am doing a bit to contributing to the World ticking along:
Happy bank holiday to all
*crestfallen*
Is he creating value for us or for someone else? You never really know with Colin..
Who knows what dodgy backroom deals took place in downtown Maputo...
Thanks for your essay zap. Makes sense.
Remember you saying something along the lines of ,'geology doesn't just stop'
Is it highly likely to find more Super high grade sections of CU ?
Yours cruelly
Jez wot bit of Am Over you don't you understand ❓
Not much happening here. Colin must be busy creating value.
Hey Dani
Theoretically you would think a higher Cu price would lower the economic cut off grade but generally it comes down to the selected or required processing method used with the goal of giving the least dilution or extracting the cleanest concentrate before a different method of extracting the copper is required
Methods generally vary as the grades reduce. Hence why a high grade resource tends to have a higher cut off grade.
So many different factors can determine the economic cut off grade, but will have its lower limits as methods to extract also become increasingly more expensive the lower the grade.
You love me really Ma, I can tell.
Xx
Best I leave you in the capable hands of Mr Zap, Cruella
Thanks Jez
but calculator doesn't tell me if cut off in Zambia is lower than 0.5%❓
You AR* E
Hope this helps Ma.
https://www.amazon.com/calculator/s?k=calculator
Wonder whether the agreement with AA has a ‘change of ownership’ clause. Such a clause might potentially mean a new owner of AA would no longer have an option over BR…… have seen such clauses many times and which are used so that a company retains control over who its prospective partners are. Granted, more usual in a joint venture situation, but anyway just a thought.
Hello NTM and ZAP
sorry to bother you guys.
Been reading RNS 3 April Silver king
It states
An in-house non-JORC (2012) resource estimate by an external contract geological company was commissioned by Glencore in 2012 ("Non-Compliant Resource"). The Non-Compliant Resource reported an estimate of 268,971 tonnes at 2.7% Cu at a 0.5% Cu cut-off
Cut off in 2012 was 0.5%.
Since CU price miles higher is the cut off %lower❓
If so how much more contained CU is there❓
Thanks for your time
Yours cruelly
X marks the spot !
Perhaps elaboration is better left to good creative writing types with big twitter followings Mr J. Zoo :-)
I've not heard that one NtoM, care to elaborate ?
Speaking of good stories; how many of you have heard the one about Anglo American looking to increase their booked Copper Inventory in short order towards helping BHP come back with an improved offer.........
....And Anglo American Senior Management giving Mr Colin Bird a call back regarding his long requested chat about exercising their option to buy out a significant scale copper porphyry in Australia that goes by the name of Bushranger
The overpromising involves some very good stories along the way too Paddyboy.. and many - including myself- like a good story, in fairness.
But plenty have memories longer than CB would like them too, alas.
Still, here's to some new audience involvement and another captivating story from the one and only Mr Colin Bird !
“ Over promise and under deliver” - that’s CB’s mo.
1st or 2nd qtr 25 will see income.
First need news in the development.
News please......
Spin? Just offering a rational explanation based on what has been put out and said.
My understanding is that what started out as a small scale ready to mine development project that revenue will pay toward a small sustainable mine that its cash flow will pay for to increase LOM
After evaluation the project has turned into a much bigger proposition that now first requires an initial major exploration programme that needs paying for likely through a fund raise.
CB has also said that any fund raises will only come as a result of major exploration.
There was talk that the potential scale of operation could or will warrant it ls own processing plant…..Now consider Manica’s development.
Kakuyu does not have a defined resource so exploration is potentially starting from scratch to create any kind of business case.
It could take far longer and cost more to monetise than the licenses positioned in the highly prospective western foreland where M&A activity will intensify.
Has been mentioned before that cb likes to buy a plaything with other people's money & when gets bored goes & buys another one.
Enjoy the day