The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Ma - OK, thanks
$700 is too low. I would suggest for operating costs use the statement from CB in the annual report on page 25
"Production has stepped up further since the balance sheet date with the plant processing approximately 40,000 tonnes
of ore per month. The new plant has proven reliable and is producing recoveries of around 88% from the oxide and
weathered transitional ore. The plant has C1 operating costs of approximately $800 per ounce"
Land tax is not related to with where the gold is sold. Selling gold in Dubai ensures a higher sale price per oz than when they were selling in Moz due to VAT. Last production report quoting average realised sale price per oz would indicate that gold is being sold in Dubai.
The cost of team on ground from Explorator is likely, my opinion, an additional cost to the $800 / oz. The last production report doesn't make this clear. I suggest this shold be explicitly asked at the AGM. I won't be at AGM but questions I would like to have asked around Mozambique and FB following the last quarterly production report are:
1. Now FB are achieving commercial production and even nameplate capacity has been reached. Are XTR receiving the $20k per month as per RNS when MMP were appointed ? Is this a separate income line which could be reported or is it netted off the production costs ? If separate income then disclosing this would be helpful in the next quarterly report.
2. The production cost quoted of $1185 / oz in last production report - is this inclusive of production tax or is this a separate cost which XTR as licence holder need to settle ? If it is a further cost above the $1185 then a footnote to explain this would be helpful in the next quarterly report.
3. In the annual report you indicated more recent C1 cost of $800 / oz now plant is processing 40k tonnes per month is this equivaleint to operating cost on which the profit share agreement is based ? Going forward is $800 / oz a reasonable assumption for shareholders to assume when considering investment potential of XTR ?
4. Do you still have an on the ground team in Moz ? If so are the costs of this team included in the $1185/oz or is this a separate cost as it is shared with alluvials and hard rock. If separate it would be helpful to continue to disclose the quarterly cost of this team as done pre Fairbride. Can they give an indiation of the cost per quarter of the team ?
The bully bashers will not be too pleased with the wonderful results starting to come through.
Well done MaBaker for putting the time and effort in to show how the real value is being accumulated.
Ma, just had a quick look. It's $1250 and not $1350 and varies once the gold price goes below that. The Agreement in May 2019 explains it better than l can.
Ma - bit late at night but are you sure ?. I thought it was 23% of profit after $1350 an ounce.
Thanks for the warning
Wink
See you at the AGM, we will see the substance then and it'll be bovine and smelly.
The video of interview with Empress's Global VP was actually released by Proactive Investors but Empress twitted about this update.
People who are selling at these prices must be insane IMHO. Empress just released update on Manica [pronounced correctly ManEEka]: "we continue to see gold increase month by month and plant is largely de-risked [...] and we are looking for additional growth throughout the end of the year" https://www.youtube.com/watch?v=OPYOHEVNh5w
Yes i know , low class :) , good opportunity for jezz to put a post up with some substance , lol
MB, can't really help you sorry , was hoping for something more geological ;) maybe zap ?
Within the Financial report of another of CB’s companies, he lists 15 “other” directorships. Just how much time does OSV think CB actually spends on not just the other companies but the many projects within each of those companies. At best, CB and his board, are “part timers” but paid handsomely into the bargain.
"Quite why they think that they possess the necessary understanding to avoid losing money is beyond me as they quite clearly have lost out. They remind everyone of that fact on a daily whine crusade."
Many here didn't have detailed knowledge of the company/industry. They made the mistake of listening to and trusting cb. Expensive mistakes and now you come along and tell us cb is working hard and should be trusted.
Cb has a credibility problem. Yours is even bigger.
Backtothesoil. It demonstrates the importance of timing particularly when dealing with an opportunity such as Bushranger. Clearly there are some gaps in the understanding of that fact amongst a few on here. Quite why they think that they possess the necessary understanding to avoid losing money is beyond me as they quite clearly have lost out. They remind everyone of that fact on a daily whine crusade.
>>The biggest positive regarding XTR is the hard work being done by Colin Bird and the board on shareholders behalf.
Alastair (sorry OSV) - It's interesting you keep praising the 'hard work' of the BoD especially when, in the most recent interview, Bird himself stated that he had nothing to do with the good progress at Manica. (A reminder; the project is 6 years behind Birds forward guidance)
Furthermore you note how you 'trust the board to deliver on our behalf' - It seems the BoD don't share that same trust in the company as it's only Bird that has actually ever bought shares in the company.
That must have some sort of school that has produced somebody who regards a price drop of over 70% as encouraging.
I know why I'm here and what I expect and expected.
I still think I will at least get my investment back hence the reason for still being here.
Unfortunately your "good education" hasn't made you a better person it seems.
No doubt when we have an improvement in the SP you will be taking all the credit for it as you come across as a "I told you so" type.
Mr Jezzoo. Unfortunately for you it appears that it is your school that has produced the bizarre situation that keeps you invested in a company whose board you do not trust, in a chairman you do not trust, and building up value that you refuse to acknowledge. At least my education has given me the tools to recognise a good thing when I see it.
Backtothesoil. The chart looks like a wonderful opportunity to me ? A good education no doubt helps me see that.
Does Kwack have bi polar. We seem to have gone from one extreme to the other. Regardless of Racecourse, a gold producer being valued at approx 2 x earnings deserves to have questions asks. Why have bulletin boards if you can't discuss?.
OSV. Before you begin to pen another eulogy to CB and his hard working board, just have a look at the share price chart over the last 2 years and then write your eulogy. You will see the results of all that hard work.
Mr Stooge. You said
" The biggest positive regarding XTR is the hard work being done by Colin Bird and the board on shareholders behalf. It never ceases to amaze me how much those with least knowledge regarding their shareholding constantly stamp their feet the most."
Let me point out something to you. You are the kind of person who thinks they know better that others. This is despite the fact you are only able to generalise and fail to demonstrate any knowledge on the subject of XTR.
You come across as a boorish lazy person who actually believes that ramping the company without any facts is enough to convince others of your superior business accumen.
If I am the spoilt kid, you must be the only child product of a public school education, your entitled pompous attitude leaps off the screen.
You are fooling nobody.
Mr Jezzoo. Let me explain something to you. I am one of the many shareholders who trust the board to deliver on our behalf. You on the other hand are like the spoilt kid at xmas throwing a tantrum because you didn't get exactly the right toys in exactly the right colour. You just want all the toys delivered yesterday straight to your pram. The biggest positive regarding XTR is the hard work being done by Colin Bird and the board on shareholders behalf. It never ceases to amaze me how much those with least knowledge regarding their shareholding constantly stamp their feet the most.
Two good posts Howezap, maybe OSV can take a leaf out of your book and be able to post an XTR positive post with substance and not mere sycophantic drivel.
Actually l understand we as investors need to do our homework but it is his responsibility to make things clearer. He is leading the company and l understood by his own doing that hitting 2mtis very real. I.e. if l was learning to drive its upto me how but am guided by the instructor. If he does read the board he should know he needs to do better. I will praise him when my investment increases as that alone shows me he's done us ok. Yes it takes time but be more responsible
>>Colin Bird is no longer providing his podcasts to help them to understand better.
Don’t mean to be cynical, but it’s not his job to help investors understand. Although he has repeatedly stated it’s far better to, and is of greater value to show a viable mine than chase 2mt.
The drilling objective of 20k metres to delineate 2mt was simply based on crude assumptions that the increased ore body was of the same grades as the higher grade original resource. They had every right to use this as a PR hook as I’m 100% sure the geological team were well aware of the expected peripheral grades in RC. In fact the conceptual study is pretty damning in stating that,
“Optimal believe that the economic recovery and processing of ore with low grades between 0.1 - 0.2% Cu is pivotal for the economic viability of the Racecourse project”
While the number crunching is ongoing there is nothing more that CB can report or point toward while they still have optionality to progress the project toward that AA option.