George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Apologies investing 100 in that case, although I must question your timing then after the recent rerate. Bit touchy that’s all.
Certainly no offence intended.
Podcast•
More news from down under to follow, and hopes to speak again before Christmas??
Fairbride plant is ramping up with ongoing plans for increasing the mineral reserve and sulphide plant potential.
2-3 years certain cash flow minimum from Kakuyu with good potential to extend.
It's nice to see a trickle of projects coming in to support the bottom line - but obviously the recent saga has changed how people perceive this bit of news. If the prior news was more positive/BR gets over the line, then we'd (and the market) would probably be commending this. No dilution, that's the goal.
https://audioboom.com/posts/8215262-midweek-takeaway-with-colin-bird-executive-chairman-of-xtract-resources-aim-xtr
Good to hear we are looking to expand FB and build on what we have.
>>Wasting our money on impulsive purchases.?
Either a deramp or the most uninformed or naive statement.
These acquisitions are important for future cash flow into the company to secure the needed sustained growth of the production side of the business in line with its growth strategy. They will be cheap to pick up at this time of economic turmoil as these small operations will find it so difficult to go solo and secure the funding to get these projects cash positive. Xtract are very ideally placed. They are of no extra burden to xtract as a project manager will be appointed.
That type of RNS would have seen the sp move up in previous years. Many getting excited about the potential.
Not now.
I think the market is now numb to anything other than results from CB.
I noticed this:
"with the intention of building cash flow over the near-term "
same thing said about Kalengwa and Eureka. The good news is we will have FB income so no raises to pay for this and worst case is it may only waste about a months of FB income.
Never know, this one may even produce some income! Lets see.
Looks like a world class T1 asset to me......
If we have money to spend on Projects and building small scale mines.....why are the team taking shares in instead of wages?.....
It's another form of dilution and also give thier pals for votes to control the company.
Maybe they didn't like of close the last vote was.
A reasonably well structured deal, and as promised not to heavy up front capital loaded and production ready. Small scale, let’s hope it’s turns good profit.
The company did say news on JV’s would be before end of year, so a pat on the back for the team and Colin.
Come on lucky don’t be so fickle ;-)
Don't care......look over here another project........forget bushranger blah blah blah
I've promised myself that I really shouldn't get too excited with these announcements after Kalengwa. Having said that I suppose I should wait and see if it delivers anything.
Kakuyu project with 60% interest to XTR
andmillsy... the transparency provided in the RNS is I think going to be another trust issue here. It seems to be the preferred way of reporting things that leaves it unclear what has been achieved. It irritated me that for example with regards to the alluvial figures XTR and Xplorator were exchanged in the reporting. Or the way the less valuable GF and BE deals were reported as gold produced rather than revenue for XTR. The lack of transparency needs addressing for when FB is finally reported. The market is no mood to give Colin the benefit of any "purposely built in" doubt.
Andy
Yes agreed but my £350k was at full production probably by march
As you say we won't be at 350k at the moment
Andrew 4444
MMP are still ramping up production and I doubt Q3 will be able to achieve this level of margin. A proportion of direct cash cost will be fixed.
Empress statement on revenue indicates production until 31 Oct was about 100kg.
The other uncertainty about the achieved margin will be the transparency provided in the RNS.
Statement by Empress "MMP has advised that the Company has earned royalty revenues of $185,800 in respect of the Manica gold mine from commencement of production in July 2022 up to and including October 31, 2022. However, in accordance with IFRS 15 Revenue from Contracts with Customers, this revenue was not recorded in the third quarter financial statements as revenue is recognized when gold is sold to third parties. Empress looks forward to this revenue and additional revenue from gold sales related to production achieved during the remainder of the year being reflected in its year end results."
Dani "In the meantime if you can spell out how you arrive at £340k per month if MMP reaches 80kg per month in production that would be greatly appreciated"
You can't just ignore corporation tax (sorry I think I called it CGT before in error)
Assuming POG 1800
Production tax (6%) 108
Direct cash costs (CB said 560 official but call it 600) 600
Prod tax + Direct cash costs 708
Tax (32%) (32% of profit) 350
Net Profit per ounce 742
Margin % 41
80kg Gold a month = 2560 troy oz
Xtract get 23% = 589 toz
41% margin = net to xtract =241 toz
Monthlt profit in $ (assuming $1800)(241 x 1800) $433,000
Monthly profit in £ £351,00
CB said in an interview 2 years ago margin will be 40 to 45% for FB
We should know soon who is right.
hi dani and andy, there has been much said recently about the ability for xtr to achieve it,s goals for 80-100kgs per month. whilst dealing with my insomnia and a packet of chocolate digestives i have been giving this matter some thought and reading some older reports and rns,s . Much of the chat on the boards has been focused on empress, mmp and the cil plant and the assumption that all the ore has to go through the cil plant to achieve our 100kgs and how are mmp going to manage processing all that ore from the different parties involved . Now correct me if i,m wrong ,but on an older report it says that a lot of the ore from the satellite deposits is quartz vein hosted, ie free gold that doesn't have to be processed through the cil plant. boa esperanza, dots luck,guy fawkes and duque are mainly involved in producing gold concentrate which will be smelted separately from the fairbride ore and we then get our cut, which will be from 4 smaller deposits plus the alluvials and plus fairbride . I haven't gone through all the numbers but i am becoming increasingly more confident that the 100kgs could be exceeded when everything is up and running . Another little nugget i'll leave you with that i came across in the dfs for our licence, was 992,000 ounces for additional evaluation and exploitation. Its been a longer wait than most of us expected but i think 2023 is going to be a good year for Extract ! ( just need those results colin ) .
Dani, i,m glad you've been paying attention because Starsgroupsteve hasn't , lol , ;)
Dani
I really hope you are correct but that is not my understanding of how the agreement works. There is productions costs, CGT and mining tax to come off.
I am expecting 70 to 80 kg a month when we are at full production - probably by March. CBs guidance is always optimistic so I would be very surprised if it was over 80kg a month even at full production.
I am expecting circa £350K a month PROFIT (FB alone ex alluvial income) that's after all costs inc production costs, cap gains tax and mining tax. That may not be anything like as good as your predicted figures but it would be transformational for a small Aim miner and should see the sp back in the 3ps at least..
We should have an indication if your view is correct after first income declared with production figures. I really hope you are correct .
I must have misread your post Steve…
That last one I fully agree with though!
James - I am not confident and that is the point... nobody should be! We simply don't have the data, experitse or tools to assess viability. The viability question therefore remains unanswered IMO (despite a good effort by Steve) and the gamble unchanged. We must each make our own decision but I will hold for the expert assessment.
1. Q3 results should be out in next 10 days. Q1 were out 22nd of the month Q2 30th so Q3 should be out before xmas break on 23rd?? Very surprised if they are released between xmas and Ne year. Despite what some have said, Q3 are not late going by release dates so far this year.
2. Ascot MRE estimated should be out (according to RNS) by end of Dec.
3. May get some news on FB re commercial production this month, but January is just as likely for this news imho. 50/50 dec or jan
When I say news, I mean RNS news not CB interview "news!"
not sure how you can be so confident that Opex won't increase by 100%, based on MRE we would be processing 3x the amount of rock and if processing cost are roughly 50% of total opex (this could of course be wrong) it would make sense that the opex cost roughly doubles from the conceptual study.
As you say time will tell
"In my opinion he needs to do/say something credible"
What I had in mind was news via RNS, which we have been promised for pre-Christmas or by end of 2022, and worded in very plain English that leaves no room for interpretation.
ZM - The problem is that each time CB opens his gob in an interview, the SP goes down! The SP isn't going anywhere until there is either some good news delivered through an RNS or some large purchases come in and attract the attention of the herd.
Jamesiecakes - They may well be better examples of likely costs... I just linked to the first thing I found to show the different types of costs, of which processing is just one. There will undoubtly be a material increase in opex for the extra processing but nothing like a 100% increase as Steve used in his assessment. In a game of fine margins, the difference between a 50% or a 100% increase in opex, is night and day in terms of determining economic viability.
Time will tell.