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Update!! Might not be my last day in paris, easyjet just cancelled our flight home.
XTR report states out of Kalengwa at a cost opf £360k (paraphrased).
BZT report (yesterday) states "In light of technical and regulatory issues related to the Kalengwa project the Company has with the agreement of its partners agreed to pause work on this project pending resolution of these issues and accordingly has decided with effect from 31 December 2021 to make a full provision against its investment in the Kalengwa project."
So just how much, acrosss both companies, has Kalengwa cost? Anyone know?
E&OE
There is a good pod cast on sky news app, which talks about his important cooper is - worth a listen
Had a go at selling a few this morning but had absolutely no chance, Could only quote to sell 10k shares. Not worth trying to sell when you hold a lot.
Managed to stay away all day whilst enjoying the last day of my paris holiday.
So I've popped back in this evening, with a nicotine patch on to see the damage!!! ..... not surprising at all.
Like always, things are left to interpretation. One example is the comment 'where bushranger sits on the global market' this could be interpreted as AA arnt showing much intrest, we are putting the for sale board up on the global market. Possibly the optimist could argue its so big they arnt just comparing it to where it compares on the Australian market but bushranger will be high up on the global market!!
It turns out that kelengwa cost us 360k!! I don't buy the excuses at all!! Xtract had many months to do all the due diligence before committing. I know it's not huge amounts but I believe it was bought for shares in xtract, therefore I'm sure they made a lot more than the 200k or so that we gave them.
Any conspiracy theorists? Wasn't the owner of kelengwa some murdering gangster? Did Colin owe a debt? Is the owner of kelengwa into horse racing?
Lol I'll leave that one there, maybe I've watched too many films.
I keep hearing in my head Colin say 'we don't want to give away a cadia' that's all that's keeping me hanging on.....aswell as not being able to sell any shares haha.
GLA I think we are in for a longer ride than expected.
For those attending the AGM could you please request that the quarterly statement to include opening stock of Dore bars in ounces or kgs plus produced in the quarter less sold in the quarter to equal the closing stock. What determines when the gold is sold? Thanks
Just on that..... comms..... surprised there hasn't been an interview to 1. Go through the highlights of the Report and 2. Address the negative shareprice reaction.
Not saying he needs to but historically he has....
IWTO
I'm no expert on land banking, but surely any sale price will be based on the POC when the mine is thought to be going into production? As it will take circa 10 years (very quick) to build the plant and get into production, and remembering the LOM will be 25 years min, I would think that any buyer would be trying to determine the POC in circa 2030 to 2060.
So the downturn recently, or even over the next year, may not be as significant as intuitively it seems.
With the Green revolution and EV revolution, I dont think any analyst would think that POC will not be higher (possibly significantly higher) than its current all time high by the time that the mine is starting production.
Andy - I wish you'd volunteer to help Xtract with it's comm's.
Just a thought - I presume it’s quite common for large mining companies to buy deposits for mining not now but at some time in the distant future - just like in house construction. We know BR is a sizeable deposit. Even IF of low economic value at today’s spot price (and I’m not saying it is) BR must have a reasonable value with the intent of putting it to one side until the copper price reaches its likely higher permanent price. So even a 1-1.5Mt deposit (say) at $4 per lb has a value that a major mining company would be prepared to pay for. That may be fairly nominal - $50m? (no idea) - but that purchase price is small change for these guys. Those experts out there - am I right?
Trying to put a balanced, okay maybe positive, perspective on the financial statement https://twitter.com/andmillsy/status/1542862115941355522?s=20&t=aGHANYhgLSO5FBmdp6tZWQ
Sundry macro stuff is a majorly negative key driver here curently, alas.. but ditto AIM over - AIM all share Index has gone from 1300 ish to 875 ish over last 10 months for eg so, broadly speaking, everyone long AIM is suffering badly across their p/f's.. same for non AIM to a reasonable extent too, but, as ever, not nearly to the AIM extent -
....and Mr Colin Bird - once again - did indeed raise expectations up to too high too quickly.. as per his natural disposition and previous history.... but I guessed this to be the case this time round too and so was ok with selling tranches of these to take profits in the 6's , 5's and 4's.. but I'd not be selling any in the 3's .. and will just look to be patient and hopeful here around now..
( but still not quite feeling the urge for adding shares back here.. at least until I see hard core good news.. as markets poor to awful around now and everything can get dragged further and further down, as is the bear way of things....especially on the brutal - illiquid- AIM )
The AGM was in October last year. Why are posters talking about his year's AGM if it is not until October - or is it due to be held at an earlier date this year???
Hi James
Hope to join you at the AGM and to receive clarity.
As you've rightly highlighted before the quarterly statement on production and sales really aren't fit for purpose and they don't (easily) allow the necessary reconciliation.
I missed your post on AF when I posted mine but similar perception
"But probably best not to listen to podcasts anymore other than for fun and rely on Empress for the factual information"
The problem with that statement..... is that it's true:)
So dont believe what our ex chairman says in interviews but rely on info / updates (re FB) from another company !
Flipper56 I think there needs to be a thought around succession planning and I don't frankly see anyone in the current directors as being Colin's successor but this comment would apply to his other companies equally.
The expenditure on directors remuneration is in note 10 of the annual statement. Please remember when looking at this that the bulk of spending is on share options and these will only be realised above a strike price of 10p.
The RNS related to the share options is below
https://www.lse.co.uk/rns/XTR/award-of-share-options-m86nqgci5sa5gs0.html
Eduard Victor name was a surprise.
Not sure as a non exec what Alastair Ford is doing other than audit and remuneration committee. The statement also states "Retirement by Rotation In compliance with the Company’s Articles of Association, Alastair Ford will retire by rotation at the Company’s forthcoming Annual General Meeting and will offer himself for re-election."
I will hang on and hope to be able to buy at 3.5p following Ricks advice. I think copper is near a low or getting close.
I also noted the point about Manica production being 5 years, then 3 years, looking to extend it .................. . I felt the annual report for AFP was far superior and professional despite mixing up his Companies (I assume). He probably wrote the XTR report after. I agree paying lots of money for a new CEO wouldn't help. Do we need more projects above what we currently have ?. There seem to be good people on the ground, I have faith in their abilities. But probably best not to listen to podcasts anymore other than for fun and rely on Empress for the factual information.
Appreciate the sentiment Steve, my view however, is that Colin - with a track record of selling mines - will be the one at the negotiating table. We have teams in place doing the 'heavy lifting' within the various subsidiaries so I'm not sure I agree with the view that CB doesn't have enough support. I'm also reasonably confident CB has solid strategies in place re our various assets (including an exit strategy for Bushranger), it can't be helped if we found a new resource (Ascot) that has extended the timescales due to the desire to further explore... any other head honcho worth their salt would have made the same play as CB if they were in the driving seat, so why should we pay another wage for someone else to make the same decisions?
I'm genuinely interested, what is it - specifically- that those posters calling for a dedicated CEO think said person would be doing to earn their keep?
Agree that its Copper price led. However, that price is not being driven by fundamentals, rather by wider market sentiment. LME inventories are only slightly above 5 yr lows, and are the lowest they've been for this time of year in the last 5 yrs. Fundamentals will catch up eventually.
Had a slight feeling a while ago we would see these prices. A little lower is possible. These prices are unwarranted and certainly not in line with company value. But a share price is only worth what someone is willing to pay for it.
This is when people need to keep calm and look for the best price for them to buy more or get out if that is their preferred option. The sp is now down nearly 50% on the highs of only a couple of months ago. Has anything changed that warrants a near 50% drop, certainly not in what we have going forward imo.
The drop in copper price is a big one, we need to keep an eye on that as recessions follow big drops in copper prices. That will be scaring some into selling. Plus CB has become quieter and quieter over the period which is not helping. You can't stop him talking about great news, but when comma drop off this leads to people getting jittery quickly. Good posters were bickering yesterday which is so unusual for this board. If you believe in xtr you are in the right places, if you have doubts you get an exit strategy like gixxer has. Good luck all posters
JDAU - Without good comm's keeping the SP strong, and a well thought out exit strategy for Bushranger, Xtract is vulnerable to being held over a barrel and shafted sideways. I'd be more than happy if they paid someone £100+k to avoid that.
CB has done a great job getting us this far but he is simply spread too thin and needs support.
I agree with Taverham . It is the falling copper price causing the sharp drops. Until this stabilises the SP will remain in the doldrums . From $4. 80 down to $3.50 per lb is a big jolt over a month or so
I agree I think Colin has too many companies on the go to devote enough time for each
In fact the last company he bought shares in the market was at the end of May was Tiger Resources TI R his vehicle which he obviously has plans for.
But good time him to spend his bonus on buying XTR
Jezzoo, I feel like I say this almost every time the "we need a ceo" gets brought out the bag.
I appreciate your view, you're entitled to it, but it has to be said: all of what we have currently is down to CB
- he's got us this far...
We have various income streams either currently operating or coming online in the immediate future (managed by teams on site/contractors), we have development on our Lachlan fold project down under being managed by the team down there.
It seems to me like our projects are being managed just fine, even if the timescales means we have to wait patiently.
What would paying someone 100k+ per annum bring to the table? - We'd still be at the behest of the sometimes glacial pace of mining.. A dedicated CEO isn't going to make a blind bit of difference to the amount of gold processed in SA or the speed of drilling/lab work in Australia.
CB still has my unwavering support as a long term shareholder - my view, for what it's worth, is that a CEO taking the reigns is a fairly pointless expenditure considering the model under which extract operate (royalty streams and/or exploration which is managed by teams on the ground) - 100k+ a year for someone else to ring those teams for an update and update the market? No thanks.
I said yesterday that the poor comm's has knocked at least 25% off the SP... make that 40% now. "Jeez" sums it up.
Hi Andy
If we assume that all unsold gold relates to Q4 2021, we know that the cost of gold produced was $338/oz (per the unaudited production report). Converting this to GBP at the Dec closing rate of 0.74 gives around GBP 250/oz of cost. if we divide the 177k by this 250 we get around 710/oz. Per my tracking which is based on the quarterly production updates from this should be more like 880/oz so not a million miles away but still significant. I assume my tracking sheet is wrong or that some of the unsold gold wasn’t due to XTR (I plan to attend the AGM so will try to get clarity on this).
Looking at the chairman’s report he notes that FB will continue for 5 years, but this is reduced to 3 years on page 66 or 67. Quite a difference in value when you are talking about GBP 4-5 million per year on a 35million market cap company. Again it would be good to get clarity here.
The directors renumeration was also interesting, the guy Alister Ford isn’t cheap….. And CB bonus was quite attractive (100%), I am fine with someone getting a cash bonus when in a cash generative business but not so convinced its appropriate here, I would have thought his option would have been sufficient to motivate (along with the disposal incentive the company has put in place).
Cheers
James