Space`s knowledge on all things Cepica is quite extensive. Although, I think his judgement at times has to be questioned. I have been reading this board for over a year, and I can't recall a single instance when he's expressed a concern. In space world everything is moving along swimmingly. The recent RNS for instance; he thinks they are playing games just to get a better deal. As always I hope he's right. But, I think, if Mr Nelson tied him to a chair while Colin Bird, esq. slapped him across the face with a dead turkey and screamed, "we've gone bust" he'd probably accuse them of deramping. Ps I like his posts though
We have a draw down facility with YA Global Master SPV, Ltd ("YAGM") already paid for that jhas hardly been touched . I'll post the link for you once again and copy and paste relevant part of it .
A financing package has been agreed with YA Global Master SPV, Ltd, which is advised by Yorkville Advisors LLC and consists of debt and equity. $300,000 in cash (gross of fees) is immediately available to the Company and approximately £1,000,000 will be available to the Company upon, and subject to, shareholder approval of the proposed waiver of Rule 9 of the Takeover Code
· The debt facility provides the Company up to further US$4,700,000, as may be required
Agreed BiffBaffBoff It's the unknowns that have made me cut back so hard here.
the payments I have confidence will be rescheduled. The Option Holder has no real choice if they want to see their money again.
But it is the Rock and the Ore body that concerns me, namely 2 main points:
Can they overcome it? - yes they probably can IMHO
If so - what will it cost? - Here is the rub. Could get lucky and it is just a local issue that is not repeated anywhere else. or.. it is persistent and Ca$h is required. That cash will come from Yorkville or similar, which means dilution.
That last point is the reason I have sold out so much - I will consider loading up again once i hear a positive stream of news, as the underlying SP has a lot of potential if/as/when it all gets sorted.
However, it appears to me that it means diddly squat if the gold bearing rock is discontinuous and continues to be unstable, and the current earn-in option agreement cannot be re-negotiated successfully or payments deferred and the Mine does not become cash flow positive in February 2015. Reading between the lines, I think it can all be resolved, as you have highlighted, but it is a worry. February is going to be an interesting month.
If you really want me to explain every little detail then so be it , in brief though . As you rightly point out January 2014 the SP was 0.34 / 0.32p per share to buy and sell . Then YA Global Master SPV, Ltd were able to trade their shares from February 2014 which they got for providing Xtract Resources with a draw down facility which has hardly been touched . They received 23% of all company shares in Xtract Resources for doing so but seven months later we receive an RNS stating they'd reduced their holding down to 5.5% of the company XTR . Last Tuesday we received an RNS stating TIR who saved the company from bankruptcy had reduced their 29.9% holding of all XTR company shares to 8.35% . Now with all these extra shares in the market doesn't that give a clue as to why private investors can buy shares so cheaply . For how long is anyone's guess since at current market cap our fundamentals are worth more . As in GOS shares , money owed to XTR by Mines Global ('MG') , new equipment including new ball mill , new underground drill , new tooling for a processing plant etc ......... I won't mention YAGM being known for shorting or the ( MM )'s for that matter but soon Xtract Resources will be cash flow positive and that will mean a re-rating of the SP ......... hope this helps ....... Space
You are a knowledgeable poster that I have no doubts of and always posting information here. SP dictates how we are doing as a company not words on a bulletin board on how good something is be that a resource or a person, nothing more as far as shareholders are concerned. As for out of touch, it was touching 0.3x a while ago so backs up what I'm saying. Before you start lambasting long term holders take a look at their viewpoint, the SP does not lie and that's our guide of how the company is doing realtime, not words in a RNS as we will all agree. People on here are not out to get you as you are a knowledgeable smart guy, go easy on the defence.
redbike ............... If you think Xtract Resources hasn't been selling concentrated ore to the Chile government refinery since the day Mr. Jan Nelson took control of the Chepica copper / gold project 11 months ago , you really are out of touch . The ore going through the old processing plant was from copper rich Salvador mine with a 3.5g of gold equivalent per ton of concentrated ore . This is found on the outdated company website where it also state $105 clear profit per ton of concentrate ore was achieved . The old floats recovered 50% of concentrate from raw ore meaning our tailings dam has a fair bit of untreated ore that could be reclaimed but since we're now in gold rich Chipica mine I can't see that happening unless it's to increase throughput in our new processing plant .
With regards to throughput prior to October 2014 and the commissioning of our new ball mill we had a maximum throughput of 3,600t/m . Since then our processing plant has been ramping up processing gold bearing ore from a 400m reef that has come into some teething problems as in requiring a loop to bypass severely displaced and unstable ground conditions. This reef was quoted in an earlier RNS to contain between 60 - 80g of gold per ton of ore but we'll stay with Tuesdays RNS not to get to bogged down . In December 2014 the ramp up had achieved 4,500t and in January the same tonnage is forecast . Next line copied and pasted from Tuesdays RNS " Should development be established on the reef horizon within the next week the Mine will be able to achieve its revised forecasted production cash flow for January 2015 . " then the following line states " It is now expected that the Mine will be cash flow positive in February 2015. "
Since the early days of the Chile copper / gold mine , earn in agreement with Polar Star I've believed Mr. Colin Bird would call on Polar Star to take some of the short fall in earnings to allow Xtract Resources a fair crack at making a go of it . We see in Tuesday's rather poorly written RNS that he is now doing that since a loop had to be created to allow full working of the 400 metre reef . There is nothing unjust in this or out of the ordinary just plain business sense . We do after all own all the new equipment which at our current market cap is equal in value and have the Chairman of many companies as our chairman with his best mat Mr. Jan Nelson doing the work hence it's formality . Nothing more nothing less to get the best deal he can for Xtract Resources .
The gap down by the ( MM )'s on Tuesday certainly caught a lot of spreadbet account holders napping but it's following the same trend as it did when Jan Nelson joined the company so they should have been ready for it . The gap fill will probably cause the same spike as last time but don't trade unless you need the money . We have a pair of experienced professionals running Xtract Resources who've been there and done it all before .
Means diddly dee if you cant get it out of the ground to sell it. This is what I was on about this week, SP is the judge of what we do and how well we do it. low point for the SP this week for holders so its not nice to see it eeking those drops when we make ground. With the setbacks were having at the moment, need to get things settled and in action at full rates. XTR can do it, im sure they can....but please let the next RNS be a good one, were due one that says "were on target grades and have optimised x to give us a further gain in y area"!!
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