Eh Saxon? It did have an effect, ages ago, we were notified, and they've been upgrading the haulage..... There's no recent earthquake (ignoring the sort they have all the time and are irrelevant - nothing above 7 since the time of the last major one in September). So we've already been told of the effect and what's being done! Now it's just a case of production being scaled back up again.
Have to say I'm surprised too; you say "...continued deferred payments...", but there's just been one round of good housekeeping, a direct result of the earthquake. ButF forget about that, what is important in the next five or six weeks is whether they can perform to, or better than, forecast revenue from Chepica. That, and the progress of the new access, are what will drive us higher - if, as we think and hope, JN is doing a good job.
Hopefully, we will see next week confirmation of no effect of earthquake on Chepica, especially with the new stronger haulage route, Amongst other news More Brokers to cover xtr with research notes The outlook is bright Xtr is the one for me Saxon
Well obviously it's not....yet :p They had a friggin massive earthquake in Chile as you say....they have one over 8 on the richter scale once in 17 years on average. So it was delayed for 3 months whilst they build a new stronger access. It's not their performance that has been poor. To quote the MF article "the company has made staggering progress over the past year improving its prospects". The earthquakes aren't that much of a worry. They're a regular a occurence in Chile but ones of the scale to make a difference here, especially with the strengthened access, are pretty unlikely.....probably have to wait another 17 years now if the past is anything to go by :p (and that's even if that'd do it with the strengthened access) Of course Chepica has to bring home the bacon.....but if you don't believe it will there's no point being here! Not many people who think that though I'd guess. Not sure why you think deferred payments are a worry.....makes perfect sense to me, with the delay to Chepica because of that quake.....much of which is now past. Preserve a strong balance sheet and cash flow whilst they upgrade Chepica.
I am a big fan of this share, but these continued deferred payments are a worry. You can try and argue that it's good for the balance sheet, but in effect XTR is just not performing to forecast. Chepica has to start paying as promised or there's going to be trouble next year. I'm not surprised people are sitting on their hands. To be fair, JN couldn't forecast the earthquakes, but we're now in a period of increased seismic activity so there's a lot to be cautious about. Last March I thought it would take 2 years to bring this company around. I'm still prepared to wait, but then I bought in last March at 0.094p (having been out when the RNS over Chepica's problems hit the news).
From that article: "Xtract Resources has the potential to become one of the world's premier small-cap gold producers. The company has made staggering progress over the past year improving its prospects, and during September the company acquired the Fair Bride gold project, jacking up Xtract's resource base to over 1m ounces of gold. However, Xtract's key advantage is the fact that the company's cost of production is around $650 per ounce of gold, making it one of the world's lowest cost gold producers. Gold production is expected to double over the next year and the company recently received a boost from its Chepica Gold and Copper Mine in Chile, which reported revenue growth of 153% to $448k and profit growth of 186% to $150k for the third quarter."
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