Xtract Share Chat (XTR)

I don't know why some posters think today was the day the placing shares hit the mkt.
They were tradeable on the day the placing was announced !

Per Lucky520: With thanks.
"TONNAGE: Do the maths & you will realise we have the tonnage to meet AA* buyout. The question is whether we have the grade. Time will tell." @16:17, Thur, 4 Feb 2021
https://www.lse.co.uk/profiles/lucky520/

I recall Lucky520*s earlier post that one needs 430m - Cornford quotes this in his above article within this thread.

4.2.21 [Thur]
Tomorrow, Racecourse Hole 2 could hit 846.5m + 48m = 8 9 4. 5m.
[846.5m minus 798.5m on Wed = 48m/day].
Target depth: 750m HIT.
Mineralisation continues per today*s RNS so drill continues.
Intersection thus far for Racecourse Hole 2= 8 9 4. 5m minus 340m = 5 5 4. 5 METRES.
[From 340m, mineralisation is stronger although weak to moderate mineralisation started from 130m.]

Cyber

Likewise, I'm holding and like the way it's developing.

The feedback from the coal face (copper/gold face) so far is excellent.

If I seem less cautious, it's simply my approach to investing. I use caution prior to a purchase. Once I've made the purchase, it's far too late for caution, because the decision and investment has already been made, so I devote little time to it. I follow my initial reasoning for the investment until or if my initial reasoning is proven wrong. Keeps it simple, far more optimistic and much more enjoyable.

:o)

placement shares being flipped for their standard c 10% "cut"?

... I read the posts with interest.

Apart from the fact it’s come along way (I had some on a T20 at 2.21 which I had to cough up for today which illustrates that point) I fail to see on any level how this is valued where it is down here.

Before I get any thoughts of “smart arse” which is often what I think when I read things like that on a BB ... in a few days I’ll have to settle another at 6.6 which after it had peaked at 9.00 I’d had a little stab at thinking that was cheap and I was not going to see even that level again. (Actually without the raise at 4.5 probably we wouldn’t)

P.S.
Contd:

John Cornford: "But I am, of course , only talking about XTRACT*S R A C E C O U R S E prospect, which is SIDE-LINING its OTHERS. These include B U S H R A N G E R licences [which are NOT part of the AA buy-back agreement] and its African projects on the verge of generating cash [though SMALL beer compared with RACECOURSE POTENTIAL." 25.1.21

Master Investor, John Cornford, Mining Analyst.

yes rolling and I would really love that valuation, just a few hurdles to get over first that we need to be realistic about - and the point is that the market values Boda at the £240m less all of Alkane's current income streams and the potential of all of their other interesting projects, just a bit of realism.

the bigger the size of the discovery then I suppose the slightly less of an issue with the metal grades and the chance of actually exceeding Boda - of which there must be a reasonable possibility as he made that Boda comparison after Hole 1 and Hole 2 is looking extremely good, in fact exceeding his expectations.

Anyway I'm definitely holding!

"Investors eyes are now turning to the buy-back agreement with Anglo-American, where, if Racecourse confirms a copper resource of 2Mt [5.7x than currently] AA has the option to buy back 80% of it at *fair market value.* [AA CAN ,however BUY BACK at LESS THAN 2MT if it wants to.]"

"At today*s $8,000/tonne copper price and valued at 3% which is probably a conservative margin to pay for what will be a cheap-to-mine resource, that would be WORTH $ 3 8 4 m
- OR 4 0 P Xtract shares now in issue after the £5m raise."

"So how much thicker would the width have to be to meet AA*s 2M tonnage target?
The answer is an average of 430m - some 2-3 times the INTERCEPTS already found by the 1st 5 drills."

https://masterinvestor.co.uk/equities/johns-mining-journal-where-next-for-xtract-resources/
By John Cornford, Mining Analyst, Master Investors.

---
Just in case folks have not read it or forgot - adding to the convo on this forum. By the way 40p = 80% per the Cornford article, not 100%.

Thur, 4 Feb 2021

7p tomorrow

Some big delayed trades popping up

Cyber

Then we're splitting hairs then because both Kiwara and Alkane was and is in the hundreds of £ Millions, and all the comparisons serve to reinforce or demonstrate, despite their individual differences, is the 'buy £10 for £1' opportunity that XTR presents us with at the current valuation.

I really really want that to be the case! and it does look very promising , but as yet the income from that is zero and lets see what comes of it by the end of the year.

This is a great discovery at Bushranger and should in due course be valued in its own right. i'm fully aware of Kiwara as well by the way as I held a good few shares in it and exited at a good profit. Lets hope for similar here, distinct possibility.

Future potential is what you need to realise. Copper is at the heart of the new industrial revolution and demand is increasing exponentially.

Majors will not let a massive resource sit there in the hands of a minnow when they have customers to supply. Copper demand is only going up for decades to come.

Not often you see shares hit the market & the sp pulls away from it!

Bodes amazing for the coming weeks/months!

Drill II update tomorrow end of drill & straight onto III tomorrow, get em working o/t over the weekend we want our gold!

The only thing unlikely to be in production at Manica in Q1 is Fairbride.... and that is in the hands of the mining contractor who has shelled out multiples of millions to fabricate plant , prepare the site and start on the tailings dam.... so they will be busting a gut to get into production... so can you really not see that in production by end of Q2?
Im not betting my house on it but it seems highly likely. Imo..bwtfdik

yes really Rollinginit

There are currently extremely minimal income streams (currently alluvial gold?) in XTR that might or might not increase in 2021 with Manica and Eureka . So far there have been many many delays and unkept promises on the hard rock projects as all LTH know. So there is no comparison from these jam tomorrow projects with a current £7m net profit produced by Alkane. In a year things could be very different of course.

Alkane have a number of other significant exploration projects as well as Boda and an established operation generating £7million net profit. XTR is, so far, an explorer that has outsourced it’s hard rock project to someone else for 23%, so its not a mining company, unlike Alkane.

So just because Bushranger MIGHT equal the Boda discovery (very much depending on assays/grades/gold content), even then the potential value of XTR should not be compared with the current Alkane market cap unless you are just sticking a finger in the air.
The market currently definitely says no at the moment as well.

yes really - there are currently extremely minimal income streams (alluvial gold?) in XTR that might or might not increase in 2021 with Manica and Eureka . So far there have been many many delays and unkept promises on the hard rock projects as all LTH know. So there is no comparison with £7m net profit from Alkane last year.

Alkane have a number of other significant exploration projects as well as Boda and an established operation generating £7million net profit .

So just because Bushranger MIGHT equal Boda (very much depending on assays/grades/gold content) , even then the potential value of XTR should not be compared with the Alkane MC unless you are just sticking a finger in the air.

Look at the grades of previous drills: https://www.rns-pdf.londonstockexchange.com/rns/7650I_1-2020-12-15.pdf

Then look at the XRF measurements of BRDD-20-001 (ref: https://www.lse.co.uk/rns/XTR/geochemical-update-on-bushranger-project-urg5n9bt5k8o95d.html ):

o 40m @ 0.3% Cu from 110m using a 0.2% Cu cut-off
o 148m @ 0.3% Cu from 171m using a 0.2% Cu cut-off
§ Including 30m @ 0.6% Cu from 235m using a 0.3% Cu cut-off
o 287m @ 0.3% Cu from 474m using a 0.2% Cu cut-off
§ Including: 30m @ 0.4% Cu from 517m using a 0.3% Cu cut-off
§ and: 23m @ 0.5% Cu from 628m using a 0.3% Cu cut-off
§ and: 39m @ 0.5% Cu from 722m using a 0.3% Cu cut-off

Then consider that we've had to drill significantly (in terms of meterage) past the planned depth on both of our first 2 drills due to continued mineralisation past planned depth. On top of this CB has been pretty vocal about the strength of mineralisation at depth (backed up imo by the XRF's).

The info is already out there...

If you were AA and interested in Racecourse and with the speedy progress being made would you not want to try to get a company rep in to "assist" with the drilling at this stage?

Don't forget the other players...mm's....now they know how to add candles.

Not really Cyber

As others have highlighted, there are income streams coming on line here too.

Also, talking of 'having the experience', CB already has the experience of taking a £10Mill stock, Kiwara, and selling it for $260 Million.

Alkane Resources- BODA on ASX Australia.
Mkt Cap currently: A$482.2m @81c.
https://hotcopper.com.au/asx/alk
Thur, 4 Feb 2021.

Colin Bird: "Bushranger vs BODA: Pretty much the same, Better. What $400m mkt cap?" [Sharetalk interview with Zak, Jan 2021.]

Per Edison, I recall they gave a target price of 72c just for BODA. Kindly check.

Just adding to the conversation here currently about Alkane*s mkt cap - there is a segregation of their other operations and BODA.

Thur, 4 Feb 2021.

Do the math and you will realize we have the tonnage to meet the AA buyout, the question is whether we have the grade. Only time will tell.

MasksNewNorm... Anglo were assigned Newmont's interest in Bushranger in January 2014 so they know the lay of the land here.

Will we get another RNS tomorrow stating still no need to POOH ?