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Https://www.usdebtclock.org/current-rates.html
I love this site for the US debt. Here it is forecasting for 2027. To believe that we can keep this spend , spend , spend going indefintely is folly. Net zero is just another socialist excuse/wish list to spend money. There won't be the money to pay for it. Equally , as Panama has shown, there is no appertite to have a large, dirty mine in your backgarden. I have no idea how it will play out but gold still looks a good bet to me.
In answer to your question, I refer you to the last line in Andrew's post below Jezzoo :-)
I've long said we need a CEO, and what would happen to the company if CB carked it unexpectedly ?
I think it will all end up OK with BR but it will not be anywhere near as good as CB stated and will take a lot longer than implied for the sale to be finalised. POC will no doubt need to be a lot higher , which I'm sure it will be in the next 1 or 2 years
Question is will CB still be around by then ? He's 80 on Saturday !
Some may well say if he's not the CEO then the sp will get a boost :)
''A good hold or buy at a £10 market cap.''
That typo made me laugh out loud.
More seriously, CB needs to start specifically and focusedly publicising Manica now.
(If he doesn't do that into early 2024. I'll start posting hard for him to bring in a CEO here asap and will also look to meaningfully downsize the max bet in play I allow myself here too)
Totally agree with the fundementals cyberiachas, pity it's not translated into a relevant SP.
If only CB was as ebullient with the facts as he is with daydreams.
Yes worth remembering that we have a cash generating business that could be making £4-£5million netto per annum with the POSSIBILITY of a sale of Bushranger and a couple of very interesting exploration options.
Events in Panama with First Quantum show the importance of jurisdiction- BR being in Australia raises its value as much as any ore sorting and this will come to the fore more and more with increasing geopolitical instability .
A good hold or buy at a £10 market cap.
Yes, seems like an interminable wait for reports into BR financial viability and any new direction the company will be taking now that it seems to be cash positive.
Just had a Tumbelweed bump into me and it woke me up.
Even if you ‘were’ to take a somewhat sceptical view that the rise in demand for copper will not come from the electrification of vehicles ‘in particular’ as CB has pointed to. That increased demand imbalance over supply will still come from those emerging economies around the world to provide electricity to the billion or so people that don’t have it, and the opportunities that further demands on copper will bring. Also with advancements in technologies to distribute it, in renewable energy and battery storage, these technical advancements will accelerate that coverage with more and more copper being needed at every aspect.
CB has tweeted about an interview with Blackrock fund managers about the lack of focus on metal's contribution towards net zero targets and the subsequent disconnect between future supply and demand. CB has been banging on about this for several years now, but it does seem there are others of the same opinion. The price according to LME is currently 8140 per tonne, whereas two years ago this month it was 10500 per tonne. So there has evidently been no impetus with the price in the last two years. Very frustrating bearing in mind the supposed headwinds and context.
From the article:
Mr Hambro said: “Investors have to date been focused on the companies more closely associated with the [net zero] transition, like electric vehicle manufacturers or renewables companies, rather than the companies that supply them.”
In a report published on Monday, the Blackrock fund managers warned that an expected “surge in demand” for base metals like copper could lead to widespread shortages and higher prices, adding to the cost of achieving net zero.
They said: “The demand for metals and materials in the coming years is poised to surpass all prior estimates.
Consider copper, the lynchpin of power grids, or the rare earth elements critical for wind turbines. As the global transition to low-carbon technologies accelerates – possibly faster than market projections – this surge in demand could be highly underestimated."
Non paywall link:
https://www.msn.com/en-us/money/markets/investor-disdain-for-mining-is-threatening-net-zero-says-blackrock/ar-AA1j6obo
Andmillsy said : "I really would like to have some clarity / proof of the actual cash flowing into XTR coffers."
I would also like to know what due dilligence XTR to make sure we actually get what's due to us.
Do we just accept the production figures or do we have an operative or two on site making sure we don't get stiffed ?
Very helpful James. I know you get this from your reference to production tax but repeating as it may help others - the reference to royalty is nothing to do with Empress royalty 3.375% which is solely for MMP account and this was clarified in RNS by XTR some time ago.
Kind of you to say that NtM - getting this below $1000/oz cost and if gold extends its gains to above $2000/oz the two factors really would shift the needle.
I really would like to have some clarity / proof of the actual cash flowing into XTR coffers.
Hat tip to jamesiecakes too.. I hadn't read that post ahead of posting mine..
Much appreciated andmillsy and Naughtiegordie... (and you are such a quality poster andmillsy that I again here/now gratefully tip my hat to you)
This is v important; and CB has to be very awake to doing everything he can to get the operator to bring these costs down asap. In that recent q2 Manica RNS he did at least say.. ''We continue to work with and encourage the Operator to achieve sustainability and excellence with a view to reducing mine costs to below US$1,000 per ounce which we feel is achievable against all of the critical parameters of the operation.''.. and that shows me he is awake to this.
Getting down to under $1000 per ounce would be a meaningful thing in itself from where have been at recently ! (even around $1000 would be good progress, please.. and generally there's clear scope for bottom line improvement in revenue to xtr from this production cost management aspect.... as well as production growth etc too
(but I also note that $700 or $800 per ounce costs seems now parked away in the very full car park of Colin Bird bullish+t vehicles.. or more succinctly, yet more Birdsh+t)
Hi Andy
https://www.lse.co.uk/rns/XTR/definitive-feasibility-study-eqcnevjxyc9ebax.html
This is the DFS for Manica, which shows the break down of costs (C1, C2, C3). This report should include things like security etc so you would assume they are in the C1 category (perhaps other?) Clearly we are now in a different cost environment but it’s still a useful starting point.
My understanding is that the Operating costs quoted in recent production reports is C1 + royalty (6% production tax). So if you strip out the royalty from 1215 you are left with approx 1100/Oz in C1 cost for Q2 2023 which is quite an increase from the 800 CB quoted in the 2022 full years released in June 2023 hence should have been based on pretty up to date figures. It’s very unclear if the infill drilling is the sole driver of this increase or costs have just gone up elsewhere but for me XTR need to expand on Operating costs so investors have a reasonable idea of what Q3 and beyond costs will be.
Cheers
James
Lucky - sorry, I meant Pricey. As he has just pointed out on the BZT bb, plenty more work required.
Gordie/Howezap
Here is what he wrote in the annual report which was issued at end of June 2023.
"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."
Unclear why he decided to quote C1 costs - I would have assumed they would be broadly similar to operating costs which are actually relevant to the agreement with MMP for FB. Infill drilling must be incremental to C1 costs but part of operating costs and there are likely other costs which are additional to C1 for example site security and general faciliities etc.
That's one way of getting the 2mt of copper!
I lot cheaper than drilling BR.
That would save one Executive Chairman's salary over the two companies.
Prickly is the expert on all things BZT imho.
Nice RNS for BZT. Looks good but I don't know much about the project. Anyone here invested there?
That's Funny! Defending Colin without actually knowing the facts!
2.50 onwards ,https://audioboom.com/posts/8276536-midweek-takeaway-with-colin-bird-executive-chairman-of-xtract-resources-aim-xtr .