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.
Fairbride development ‘is’ their primary focus and priority. He told us that. But agree on it is prob not enough for him which is why I prefer to look at the bigger picture of the potential of the company now.
I only press you as can guarantee a good debate Andrew.
I wasn’t suggesting you wanted to sell out ‘now’ just in general as you don’t appear to be onside with the ‘growth strategy’ of the exploration/ production mining company we are all invested in.
And then comes the personal attack before you throw your rattle out your pram again, rather than challenge any of my own views in a constructive debate.
With respect though
Re post 1558hrs nicely put!
"What is wrong with bowing out eventually leaving a company that could theoretically expand exponentially under its growth strategy"
Nothing wrong with that. A very sensible approach. But I dont think that's what CB wants because if it was he would IMHO just focus on FB expansion. That could be his legacy, and a good one, but that doesnt seem to be enough for him. That's my point !
"Just wondering if you are not serious about the longevity and growth of the company anymore and are just wanting out now?"
With respect HZ that's just typical of your response to any view which doesnt conform to the "sunlit uplands" view. Why would I want to leave just before the Q2 results are coming out which I have already said I think will be very good and should see the sp nearer 3p than 2p.
I didnt say this was a bad deal but my view was that I think the FB income could have been used in a better way. Not an overly damming comment and I also acknowledged that this deal may work out. Added to my previous view a month ago, of good Q2 results soon and an sp above 2p then, it is rather a strange conclusion to come to that I "want out".
You seem to treat this investment like a football fan supports his favourite team. Always supporting the team irrespective of the results and showing unwavering loyalty and fiercely protective against any slight criticism.
I'd rather take a more analytical and less emotional approach to my investments !
Dani>>I wonder if dear C🎯l will use empress to part fund XTR capex share in exchange for a royalty?
Alexandra sherron has previously confirmed Empress have a debt facility in place to further advance projects in their stable if needed.
Andrew>> Then again, if I was nearly 80 and knew I only had another few years left in this game to hit the big one, then I'd probably do what CB has just done.
You seem to be focused on CB wanting to hit the next jackpot out of desperation to leave a last big sale on his legacy Andrew.
That’s a very narrow minded view imho. What is wrong with bowing out eventually leaving a company that could theoretically expand exponentially under its growth strategy and management structure to a company with a worth of far in excess of where it currently sits and in a financially strong position. As he did with Jubilee!
Could well see xtract as a mid cap in 5-10 years with some successes,but only if these projects can be snapped up now while these license holders and project owners are not in a strong financial position to advance them without huge dilution at present and cannot afford to wait it out for 18 months or so. That is where xtract come in if can acquire now before there is more limited choice and value.
You know the ratios of success and failure are the same across all exploration projects and not just Colin bird companies right?
Just wondering if you are not serious about the longevity and growth of the company anymore and are just wanting out now?
're funding of sulphide plant at Manica.
I wonder if dear C🎯l will use empress to part fund XTR capex share in exchange for a royalty?
Ok DREW.
KAKUYU is in the same area as these two licenses and if I am right it's already producing income which if before end H1 will be reported in H1 RESULTS or from 1st July then in a trading statement.
This is an area of HIGH grade copper. If they are using same team to drill as KAKUYU then this derisks project massively.
I think the difference between other deals is
XTR ACQUIRED LAND FROM OWNERS.
NOW they cut landowners into profit share of project.
This is how dear C🎯l creates value for shareholders ✅
Its high risk as we may spend $2m and get nothing for it. Just like the previous other similar ventures. CB's track record on these "lets have punt" projects is poor.
I'm not saying we can't do both projects (FB and exploration) , but focusing on the less risky project first would be my preferred option. Well, until income was higher.
Then again, if I was nearly 80 and knew I only had another few years left in this game to hit the big one, then I'd probably do what CB has just done.
After all, its not his own money he's gambling with :)
DREW
CruELLA here.
Please explain to the audience why today's deal is HIGH risk.
With the income being generated there is no reason why dear C🎯l can't invest in sulphide plant to get 50% profit share and drill prospects in ZAMBIA to perhaps sell onto First Quantum??
"I left the AGM with the understanding that XTR could elect not to contribute to the sulphide plant and then we would continue to get 23% "
Correct James
IMHO I would prefer we put all our money in that less risky option first. I'm not saying this new venture is a terrible idea but I think there are better risk / reward options ie FB upgrade
As I say, maybe this time CB gets lucky but many past ventures like this have not ended well. I just get the impression CB knows he's running out of time before he makes the next big discovery so will be buying more lottery tickets in his last few years to end on a big win.
All this is golng to interest a few more new investers with a lots of optimism and something different to mull over while we await new son BR. Etc. Cheered me up loads anyway! THANKS EVERYONE FOR ALL INPUT.
Hi Andrew
I left the AGM with the understanding that XTR could elect not to contribute to the sulphide plant and then we would continue to get 23% (eg current deal), if we elect to contribute towards capital this will increase to an as yet unknown %. Like you I want XTR to contribute to this plant to grow our future cashflows as much as possible via a proven asset. Despite this as others have said this seems like a reasonable buy in at what appears an affordable amount (I’m sure we XTR will fast-track the investment for the hype). In short I’m against this investment if it means we don’t contribute towards the sulphide plant or a raise is required, however pro it otherwise. Hopefully we get news on the sulphide plant before year end (I left AGM with this impression as well)
Cheers
James
Hello ELLA
So AFP acquired licenses next door to KIW which was sold to 1st Quantum for $260m?
Please explain interest 1st Quantum has with licenses at AFP.
I wrote my write up on H1 results thread in error
cruella
Next door to Kiwara's partner and AFP/FQM.
Xtr's share of that 8m ish gbp - total plant cost - may only be v approx three million ish Andrew.. Also some/plenty of debt funding may be optimal way to go for this plant build - across all Manica Program stakeholders minds, whether CB is 100% on board with that thinking or not - and that debt repaid out of future income .. and so xtr's upfront / short term payments for this plant build may actually be pretty small, even if they could easily have afforded - or wanted it even - it to be plenty bigger... and participation in and structuring of the expenditure on this new exploration play works well alongside that.
The FB income is not gong to be so much that by using some of it on other projections it wont have an impact on FB development.
CB has mentioned £8M (I think) for the sulphide plant . Id rather all FB income went on that project tbh
I think it a better use of the FB money to go for a less high risk strategy (FB development) which will ensure more income and for longer for FB.
Then go for the treasure hunt approach when FB income is more robust, has doubled after sulphide plant built.
I see there's a 23% spread between the buy and sell prices !
It looks ok to me, nothing major to pay up front, the licences are held by others, who cannot afford exploration costs, we can so are able to, "buy in", relatively cheaply via exploration, these are far bigger licences than others the previously came, or came and went. It may well be we fast track phase 1, as only need to spend $2 million over an initial 2 year period, lets now see what Q2 brings in.
Deffo worth a punt with expected levels of income.
Interesting to see if Colin will be doing a Podcast on this?
Hi Andrew, are you suggesting because they are likely not to be spending their own money on developing plant extensions at FB?
I know CB suggested that after 18 months or so of steady income they will be in a strong position for credit to pay for mods or new plant at FB but that would be any company in any industry preferred model to advance a project surely? I’m certainly not no financial expert but even I know you wouldn’t through choice use your own money when it would be better used elsewhere if credit was available?
Maybe/hopefully he's expecting strong cash ongoingly flowing from manica to xtr to the extent of allowing funding - xtr share - of Manica sulphide plant development alongside this Investment, Andrew
Phase 3 = phase 2
For Phase 1
" Xtract anticipates funding this exploration expenditure from existing resources and current ongoing operational activities."
$2M over 24 months is about £65K a month on average so well within anticipated income stream from FB
I suspect phase 3 will require a raise but this will only be done if phase 2 was a success so sp will be much higher then than now.
I'm not saying this is a bad move (or good) but I wish CB would spend the FB income on developing FB tbh and building the sulphide plant. He probably finds that too boring and he will not make a name for himself doing that !
More high risk treasure hunts. May be he will get lucky this time !
I hope its not Shergar ................
They are already in collaboration with Oval mining who are the mining contractors at Kakuyu. So will have a good rapport already with Oval who are the license holders of the larger tenement of the two.
Assumption would be that Oval would be the mining contractor at these two new ones in NW Zambia.
Early signs already, how the now primary asset in Manica is paving the way for acquiring other assets, as well as developing the current portfolio to start bringing in or toward increasing that cash flow.
It’s easy to be cynical, but as NtM has pointed out. Xtract are an exploration mining company first and foremost so exactly what should be expected.
I propose us shareholders should be given the job of choosing a deposit name! If of course they find a mineralised body there.
What is it with EFFING letters gord
Ok so it's KAKUYU!
Today's End
📍two further licenses acquired from landowners .Cooperlemon Cost of land to XTR ZERO
📍65% JV to XTR will cost
$2m of drilling beg SEP23 phase 1
$3m of drilling phase 2
📍if during /after phase 1 drilling project gets sold on then split of proceeds to XTR 55%
📍if during or after phase 2 drilling project gets sold on then split to XTR 65%
📍if JV then keeps and develop mine split and capex costs 75/25%
📍500k tonnes contained copper equals $5b at $10k a tonne
📍newly acquired licenses adjacent to AFP (another dear C🎯l co) licenses where 1st Quantum have an interest?
📍1st Quantum bought KIW now 14th largest copper mine in world
📍KIW was of dear C🎯l major success deals
Questions
♦️During phase 1 will tailings of surface copper be processed to help fund drilling campaign
♦️is this a BOLT on for KAKUYU license ( or should I say strap on as mister vulgarity would say)
cruella
''the two licences cover a combined 107,000 hectares area covering ground in a highly prospective part of Northwest Zambia where competition for exploration licences is acute.''
I therefore see such opportunities as hard to come by and so understand xtr has of course to pay to get involved... and xtr is getting a nice share of any potential upside too.
I'm fine with this .. It's CB's 'back garden' in terms of experience and understanding.. and it's nicely staggered Investment funded readily from that plenty of surplus cash that will ongoingly be flowing in from Manica.
And xtr is, at its core, is an exploration company. ( and fairly uniquely, now with punchy ongoing cash flowing in to pay for such exploration projects too )
So lets hope this is turns out to be a good bet with, in due course, big sell on value.