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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.
You never know - if this turns out to be a cracking high-grade copper resource then I might even get my money back. Unfortunately we won't know, and the share price is unlikely to multi-bag until all the pre-drill work is done, an initial drill campaign is funded and drilled and the assay results (if applicable) are published.
But at least there is some hope here!!!
Slightly harsh. They have to apply for the exploration license in the first place so there is some cost and effort involved. But some very sensible people have bought multiple licenses on speculation hence why I think the authorities have applied a maximum of 5 per entity ( I wonder if this is why Colin uses multiple companies ?).
Xtr covers all costs. Zero risk to partner but if the prospect is successful they do very well.
I'd love shares in the companies cb does deals with.
Good location but early stage. Having the First Quantum data via AFP must be useful.
Thanks for the early heads up wilthew.
>>Xtract anticipates funding this exploration expenditure from existing resources and current ongoing operational activities.
It’s got to be worth a punt, although it does fall outside some of the parameters set in the growth strategy for the company but could well be
worth it.
The longer it’s left before partnering up or taking over these projects the harder it will become to negotiate a stronger position as copper prices start to surge by ‘24 into ‘25.
If not in it now you can’t win it later!
Sounds ok to me
As always LSE is slow to release RNS
Released this morning
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230824:nRSX3498Ka&default-theme=true
All I can say with any certainty is that Xtract just need to show a level of ‘geological’ confidence with a financial model that works, for an aquirer to be interested in taking it further. CB has stated this numerous times and makes sense at conceptual study level.
The best geos in the world still can’t predict accurately a drills outcome in a deposit where the mineralised trends are constantly changing to accurately predict due to them thickening and thinning in grade such as is at BR. The skill is in the targeting and resource building. Drilling can be hit and miss.
Cannot see Xtract affording millions more to increase the level of geological confidence toward a PFS which I think is where they would primarily spend it, if was the case.
Many moons ago CB stated that a PFS is not a prerequisite for a sale. It has been a constant battle trying to second guess what the company are trying to achieve from the limited information put out. Maybe those clues were already there and a PFS was never going to afforded, which is now apparent.
Just need to optimise to the best possible outcome after, they navigate past the AA option I think is the plan.
KUKAYA ? Never heard of it !
Gord
Make yourself useful to cruELLA.
Give me formula for business model at kukaya.
If you can give tonnes rock processed per month
Plus average grade then I can work out the rest
Guy
Read your reply many times over.
ok
XTR spent £10m to achieve (am guessing) 49,000m of mineralization. They achieved this thanks to expertise of dream drilling team
How much would have been spent by an average drilling team to achieve 49k mineralization.
If XTR were to invest a further £10m in drilling this would not touch the sides of what a major would require.
My conclusion if XTR can achieve £150m to £250m plus a cheeky royalty ie passive income attached then that wouldbe perfect sales deal.
Am I on right track?
cruELLA ♦️
That is rather hypothetical but generally yes, as you wouldn’t have to mine as much so ongoing op costs would be less in working out the NPV model for starters.
Without closing down the programme there is no point in updating the JORC as they would want to include all ore to date in the revised statement. It is the JORC send off for the financial modelling to be based on, so they will not know if the drilling to date was successful or not at that point anyway. Obviously from the interim report optimal suggested the ore sorting due to the potential amenability of the ore. The company will follow the recommendations that the expert consultants suggest. Not every ore type will be amenable to bulk sorting that will have the most profound effect on the financial performance of the model due to the potential to reduce start up Cap and ongoing Op costs. What will happen now anyway is that further optimisation of the modelling should happen later to improve on what they have. Wether through more drilling or optimising the pre concentration steps which seemed a little unclear from feedback from AGM.
Good evening guy
Princess of DARKNESS here.
A couple of questions
📍if BR was a quarter of the size and the same amount of mineralization was discovered but in a more concentrated area. Would XTR command a higher sale price to a major ?
📍if BR after all drilling was not deemed financially viable would Mgment team have spent time and cash on precontration tests etc?
Hope you like my new look❗
James yes you probably right about MC not having any input on keeping JR on, his experience is mainly in Africa. But I’m assuming JR appointment was ‘probably’ not conditional in the acquisition of BR so they no doubt felt his skill set and experience were good enough. Alongside Qui ntain there is or was a strong team, I’m sure QH was freelance.
I suppose another point I was trying to make is that CB’s input may not be as much as we may think in the decision making process??
Guy
Hi Howezap
Thanks for the response, I’d expect Jeremy was left on as part of the prospectore acquisition so not sure MC would have had anything to do with the appointment. Im not saying he’s good or bad by the way just curious as to how you can be so confident in his ability e.g. “BR mgmt couldn’t be in better hands” but take it your view is based on his past work experience.
I hope you are right on Kakuyu, my hope is that we are just kept up to date on progress (both good and bad) and it’s not just another project which we find out has been written off in the financial reports.
Cheers
James
not being cruel james but didn't jeremy reid and *****on hills discover the largest porphrey in the lachlands fold?
many geologists don't make a single discover in their whole career