The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Should shortly be on the top 5 risers board. For once low(ish) volume moving us up
……But .CB still playing this in a very low-key manner !
This goes a long way to proving sustainable income and dissipating any fears of further dilution. We are now cash generative and momentum is gathering. 5p per share is easily proved without Australian assets. Way to go.
Really good news, and looking forward to confirmation on further progress! And special congrats to all the LTH who have been waiting for FB to start generating revenue for years!
Cheers
James
Someone is loading the truck with that news :D.
Great news, although wish a bit more detail and context for future income was given. No comment from Colin either...
I forgot to say Colin, I also accept gold!
Missed my birthday Colin.... but a late pressie is welcome.
Btw.... an interview to keep us abreast of current progress all round would be good.
More Gold!
Excellent!
Confirmation that Empress Royalty's cut doesn't impact XTR's portion.
Yes, good timing, good start, good job!
Significant landmark in the growth of the company to one that is cash positive. Onwards and only upwards.
Agreed. What the copper price does in the long term has little relevance if a Company has no cash in the short term. Knowing that we have a steady inflow of cash gives us that protection should the markets turn nasty next year. And providing a steady flow of news helps to raise the profile of XTR even if not the immediate shareprice. All good. Next stop BR.
Finally, I know some folks have been waiting for this for years, but at last gold is being produced. !omg with the alluvials , xtr now has two gold revenues contributing £500k-£1m a month from say sept. Neither of which are reflected in the SP imo.
You really can't go wrong at this share price.
That said, still a bit low key in narrative but at least a separate RNS.
Looks like CB has been reading this BB :)
Pretty much all on the BB know this already:
https://www.northernminer.com/news/copper-prices-company-valuation-multiples-too-low-for-sufficient-supply-response-analyst-says/
If it takes three years, it takes three years, but there’s clearly a huge copper gap and the only way to respond will be higher prices.
Based on Lucky’s graphs from this morning, should kick in a lot sooner ie this Winter!
From BZT chat:
Hi everybody. Bag call went ahead yesterday and Pricey will be sending out the notes in a few days as Pricey has holiday commitments but will prioritise us. . AGM notices will announced imminently , the delay was caused by illness of the accountant who has since recovered. I wont pre empt the notes but will happily engage once publicised which should be available a week.
I imagine our AGM will coincide so we might, finally, get notice this week!!
Is a month old but can’t recall it being posted up before.
Is the 12 stocks portfolio update with xtract mentioned on 19mins.
Nothing we don’t already know, but listened to along with the understanding from most recent posts on gold production this morning in mind. Also, bear in mind the podcast was released before the share price slid down even further into the 3’s to just drive home how undervalued the share price is now against production only.
The gold income will be so compelling to the potential upside value of market cap and yet ‘still’ without the Oz asset factoring yet in real company value.
https://podcasts.google.com?feed=aHR0cHM6Ly9hdWRpb2Jvb20uY29tL2NoYW5uZWxzLzUwNjQ0MzcucnNz&episode=dGFnOmF1ZGlvYm9vbS5jb20sMjAyMi0wNi0yNTovcG9zdHMvODEwOTM5Mg%3D%3D
Something will give soon and if the markets turn soon, companies like Xtract will be in such a strong position anyway to underpin a strong market cap with solid income to value it by.
>>And if CB actually tells the market, the SP may even rise :) - and in a actual meaningful way, i.e. more effort that a poorly worded RNS or a half arsed Tweet....
The graphical stuff that Empress are putting out ATM is quite impressive. I imagine there are many companies that produce this sort of thing these days!
So £6million a year profit roughly.
I nearly have .5% that's 30k a year for me!
Colin, I accept checks or straight transfer, can I have mine monthly though?
My assumptions below are based on previous info and CBs previous interviews:
Possible FB income now assuming $1700 POG
Assuming POG 1700
Production tax (6%) 102
Direct cash costs (CB said 560 official but call it 600) 600
Prod tax + Direct cash costs 702
Tax (32%) (32% of profit) 319
Net Profit per ounce 679
Margin % 40
100kg Gold a month = 3200 troy oz
Xtract get 23% = 736 toz
40% margin = net to xtract =294 toz
Monthly profit in $ (assuming $1700)(294 x 1700) $500,000
Monthly profit in £ £414,000 (USING 0.83 conversion)
CB said in an interview about 2 years ago, the margin at FB would be between 40% and 50%. So 40% margin seems reasonable. It would be 42% margin at $1900 POG. In other interviews, when POG was higher, he’s also stated $500K to $600K a month from FB which is also consistent with circa $500k a month.
£414K free cash flow may not be as much as some very optimistic figures I've seen (no doubt gross figures and not FCF) , but that monthly amount CLEAR PROFIT, will be transformational for a company of our current MC.
And if CB actually tells the market, the SP may even rise :)
Thanks Steve.
BTW Jezzoo I noticed you joined the smaller of the two XTR telegram groups. I sent you a link to the larger group by private telegram chat.
23% of 'operating profit', although the definition of that has never been very clear. I'm fairly sure it doesn't include any capital expenditure and hopefully not depreciation, etc.
"MMP will receive 77% of all the operating profit produced from the permitted area through the performance of the contract by MMP when the prevailing price of Gold is greater than US$1,250 per ounce. For the purposes of the Collaboration Agreement, "profit" is defined as: Revenue on Sale less deductible costs (excluding non-cash items) and corporation tax."
https://www.lse.co.uk/rns/XTR/manica-hard-rock-collaboration-agreement-ghoo8qdt7s68ji6.html
That's $4.3m of gold a month
WHat percentage do we get, I forget as it's complicated.
There should be plenty of gold being produced very soon.
Pre production announcement by Empress was 13 June - 5 weeks ago.
Just to remind us after pre production phase we are ramping up to:
•480,000 of ore tonnes per annum mined
•Average grade 2.72 g/t mined
So soon we should be at 100 tonnes processed per day per RNS 4 Sep 2019 on agreement with MMP "Commercial production is defined in the Collaboration Agreement as a being installation of a processing plant with a throughput capacity of not less than 29,000 tonnes per month (being 70% of the planned 42,000 tonnes per month throughput)."
This year included China releasing some of its strategic stocks to support the market...... next year who knows what will happen....
But 'experts' predicting deficits from next year onwards.... getting sharper each year...