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Ok .good luck .
thomas65 almost three years but I'm not sure what that has to do to my opinion on whether I like the SP prospects . I have been adding almost three million shares to my holding over the last few weeks. I also hold Jubilee and Galileo for full disclosure. CB has this reputation of burning through cash but I think these projects are starting to bear fruit and generate cash. Also I believe the backdrop to investing in Commodities is very strong now so small mining companies will have a good tailwind and many other larger firms will be looking at them in the future.
How long you held xtr shares
There are 557mm shares in circulation after this new purchase announced on 1st June. The free cashflow generation is enough to ensure there will not be multiple shares issues going forward (unless there are major add on purchases) . The cash flow itself in six months should rerate these to above 2p to start . I was thinking 20-30p longer term target. In the TW interview, CB did say he intended to bolt on some additional purchases. He also mentioned he was very bullish on copper prospects so this new deal makes sense. With the new green order seeming to make inroads into European policy and to some extent American policy, then copper will benefit. Just look at the pressure being put on Pension Funds and Asset Managers to remove polluting names from their registrar of assets. I bought 1.5mm yesterday and will keep buying dips.
Jubilee has performed simply because it is managed by a class act in Leon Coetzer who is a exceptionally focused individual - it's rather a shame he is not the CEO at Xtract as he would have delivered on Manica far sooner and the continued diversions that occur here would not have happened.
Problem is Colin has itchy fingers, he cannot resist the urge for the next 'must have' project, in the interview with TW Winnifrith suggested that Xtract shareholders would be more than happy with the implied upcoming revenues from Manica and Zambia to deliver a significant re-rate, Bird said not so, insisting that 'blue sky' was desired and needed in the market.
I have to say I am disappointed that he has handed out 100m shares to acquire this Aussie project, the deal has diluted existing long suffering shareholders and has also put pressure on the share price because of fear the entity will dump those shares ASAP.
I suppose we must wait to see what news is forthcoming, it will also be interesting to hear what Winnifrith has to say on recent events, his crew were materially behind the recent SP rise.
I think your valuation of £400mm could be correct one day, but of course there will be around 4mmm shares in circulation by then... so about 10p per share?
How is Jubilee Platinum getting its act together tied into progression at Manica please Valuerebel ?
Littlewing £5-6mm of free cashflow per year for seven years..I understand Manica is somewhat dependent on Jubilee getting their act together too. CB likes to keep buying other projects but if he lets XTR just generate cash, the valuation will allow him to build into a solid madcap company which can then do raises off a stronger base with more Institutional buyers in place. 5p is my conservative target . This could be a £400mm company.
valuerebel… what sort of SP do you think we are looking at when Manica starts delivering revenue from Fairbride and the smaller low hanging fruit areas ? lets say in Q1 next year ?
XTR offers a cheap entry to a cash flow generating AIM share. Having sold Avacta and GGP, I am hunting around for the next decent upside plays and I agree with TW that Jubilee and XTR offer decent risk reward now the shares have been derisked. CB has been too quick in the past to taste from the discount bucket shop cup but in recent interviews he has seemed to recognise that that doesn't generate long time shareholder value. I believe a realistic target on this share is 5p over the next few years. What nobody talks much about are the post affects of Covid. Commodities like Copper, Zinc, Uranium, Silver , Palladium will sky rocket over the next few years because there is a lack of supply . Demand will be slack but it doesn't matter. It takes too long for new sources of supply to be found and mined so Commodities and Food will be in short supply. When bonds collapse under the weight of supply and Europe makes all Govvies perps because they can't pay, then equity commodity plays will do really well. This is just the start of the small cap equity bubble..this could go on for two to three years. Major equity markets are fully valued , but small mining stocks will be where the wealth is created.