• The ore body in the central Chépica zone has been drilled extensively and is well understood
• Resource has been defined for the area by SRK: • Measured Resource of 135kt @ 4.32g/t Au, 12.2g/t Ag and 0.73% Cu (2g/t cut-off) • Indicated Resource of 28kt @ 4.13g/t Au, 15.85g/t Ag and 0.80% Cu (2g/t cut-off) • M&I of 283kt @ 3.1g/t Au, 11.92g/t Ag and 0.74% Cu at 1g/t cut-off
• LOM of approximately 4 years – 11km of strike extent and parallel reefs. LOM can easily be increased to well over 15 years
• A new plant has been commissioned
• Development ends are currently being developed along reef in preparation for stoping
• Capital is required to develop the optimum number of development ends and ensure multiple areas can be stoped to effect proper grade management
• Capital is required to further optimise recovery in the mine with relation to AU-Cu ratio
• Additional capital is required for further exploration drilling - 11km of strike extent
• Implementation of Mineral Resource Management system required
• Mine currently producing 260 tons/day
• 6500 tons/month at 3 grams/ton Au and 0,6% Cu only from on reef development
• Production upon stoping set to increase to 360 tons/day
• 9000 tons/month at 3,5 grams/ton equivalent Au and Cu grade
• Approximately 1000 ounces per month
• Generate revenue of US$1,4 million per month (~US$17 million per annum)
• Costs are forecast at US$50/ton compared to forecasted revenues of US$155/ton
• Some reef ends exceed 7 metres
• Shallow underground mine with several additional entry points available creating mining flexibility
Great research if you like reading year old emails but what's happen since then to make XTR cash flow positive from the start of 2015 .... ? Research as in regards to emails , telephone calls to Justine James have changed . It's gone mate you have to reply upon RNS's and why not they are clear , defined and answer most questions that a telephone call used to do .
I understand your concern regarding YA Global and the issue of shorting the stock, but I need to point out the following for your consideration:
1. Without raising this money, Xtract would not be able to continue as a viable business and timing was critical in securing the Chepica Mine 2. Chepica provides near-term cash flow and we believe acquiring a business that will generate cash in the current market is critical as there is little money available for exploration juniors 3. I think that exploration companies have their stocks "shorted" when they arrange financing as a result of the fact that they never generate cash-flow and keep on coming back for more cash (Xtract is not in this position) 4. Xtract is different as we will use the cash once to capitalise the Mine (and Group) and then we will generate cash which is very different from the companies your refer to - this puts Xtract in a unique position and as a result I do not believe that YA Global will short our stock as the prospect of cash-flow and the upside presents more value to them to hold 5. Even if YA Global sell we believe it will be on the back of good volume (as the market recognises the growth and cash generation ability of the company) that will not depress the share price
I don't ge your point? What are you getting at? That all sounded very positive to me and he mentioned value will be realised in medium to long term. Well that was a year ago now so id say we're at the medium term point in regards to AIM investments so value is coming. Excellent post mate and really highlights XTR is about to now start delivering value to its shareholders that will actually reflect in the SP. Given the price one is now able to buy at I'd say its a pretty safe bet from here. Your attempted de-ramp even turned into a ramp. That's how you know you are on to a winner ;)
My job is to create value for shareholders (and this I did at Pan African Resources - which we grew in a similar way from a stock with a price of 1.45p to 20p) and as such I need to take decisions that will be in the best interest for the company in the medium to long term (I do not manage the company for short term gains as it is destructive and no proper business can be viable in such a scenario). As such I am cognisant of the share price, but investing in a mining stock is not a short term investment. As management we have secured a cash generative asset, we have capitalised the Group and maybe in the short term there might be pressure on the price. However, in the medium to long term the share price will match the performance of the assets and their performance. I am also aware that Xtract shareholders have been holding for long without the prospect of ever recovering their previous losses. But this is a new company with a new management team. The fact that we have cash flow and a project pipe-line will set us apart and shareholders will see the benefit over time. Not only will we see the price increase but we could even start paying a dividend!
RB-heath ....... I read your earlier post with what your expectations are for near term SP . I know they were only an example explaining Stubbsy's trading and ramping patterns , ramp base rather than peak , but in my mind 0.33p is resistance and that's where if our trend up stops will take a breather . With a recent cash flow positive RNS statement starting from 2015 XTR will be just that " profit making " there's no reason why long term we're not in the pennies and more . With Jan Nelson intending to turn XTR into a dividend paying company it is very likely ...... hum ..... and some thought only newbies got excited about XTR ....... lol Just did a few dummy buys and got sent to negotiated trading on any decent sized trades hence it's all looking good .. :-)
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