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The roast boys report back from their jolly in Africa. Xtract’s new JV acquisition Kakuyu gets a couple of plugs in first 15 mins from their guide Martyn churchouse, who is or was a company consultant with oversight of exploration and mine development programmes covering multiple targets and resources in Africa. He has just been appointed MD for one of CB’s other companies, Kendrick resources.
https://podcasts.google.com?feed=aHR0cHM6Ly9hdWRpb2Jvb20uY29tL2NoYW5uZWxzLzUwNjQ0MzcucnNz&episode=dGFnOmF1ZGlvYm9vbS5jb20sMjAyMy0wMi0wNTovcG9zdHMvODI0MjEwOQ%3D%3D
The most significant comment on about 10 mins was if you look at the open pit at Kakuyu , there are grades of 25%, 10% an average of 3.5% but as these are smaller resources with shorter mine life the grades compensate for that. So particularly where the potential discovery of a new ore body to the NE of the existing pit that displays the same composition from sampling that showed a significant copper in soil anomaly. Is great for the potential longevity of mining operations to continue there over many many more years.
Getting these foot holds now in these fertile regions is testament to CB’s business acumen, with the ability and clout to make these deals in line with Xtract’s growth strategy.
I hope it turns out better than kalengwa which certainly didn't show CB's business acumen in a particularly good light.
Eureka has great grades. Opportunity for exploration. Potential IOCG. Heard it all before. What sets this apart from the others? Why would anyone invest based on kakuye when the past two copper ventures have basically failed (they have brough 0 profit or shareholder value to Xtract since their acquisitions)?
There’s probably more to do with the JV with kpz than Kalengwa itself. It was mined originally for over ten years without power or haulage issues and is reported to have some of the highest grades in Zambia. KPZ having massive debts could be a clue.
Sometimes 5hit ’appens, a project success-failure ratio of 4 or 5-1 was mentioned. Hope is, it does not have a knock on effect with Eureka being under the same JV partner. So to drop Kalengwa with the hope eureka can be kept or bought out as is far more progressed being production ready, proven scope to extend existing pit along strike and at depth and has had more cash spent on exploration and development than on kalengwa.
Hopefully some good will come out of this. I don’t think you can blame CB until the real facts, are known regarding the relationship with kpz
Ben
If the two you are referring to our Kalengwa and Eureka as the two failures then its actually three failures as there was also "Kajevu" known as the "Matrix Project".
All three in Zambia
Money spent with 0 income which could have been used to do more drilling at Manica where we know there is recoverable gold - or used for more drilling at Bushranger.
CB does seem to have an affection for Zambia, which doesnt seem to be justified at the moment :)
Just looking a bit further into the kalengwa saga if is of interest to any unfamiliar with what’s gone on.
Initial reports in Zambian media of the mining/exploration ownership dispute, where there was a response to the market by xtract in oct ‘20
https://www.lse.co.uk/rns/XTR/comment-regarding-zambia-media-reports-ydfyagthppx9udd.html
Below is what followed in ‘21 shortly after Xtract had drilled 6 recon holes.
https://m.facebook.com/themastzambia/posts/euro-africa-kalengwa-mine-director-warns-kpz-directors-of-contemptby-staff-repor/2988142031443834/
The one stand out bit is that the lawyers of KPZ were aware of the 2019 caveat that stopped any activities at the mining site.
Once trust has been compromised in business ……
I cannot believe the Xtract BOD are ‘anything’ but blameless
>> I cannot believe the Xtract BOD are ‘anything’ but blameless.
Ask yourself if it is likely that uk listed business would sink over 300k into a project that they ‘knew’ had a court directive in place that stopped all mining and exploration activities?
Doesn’t make sense, gotta be legal proceedings if is the case. Could be a way to leverage greater control or toward a overall buy out of eureka??
Just an observation….
Shortly after the conjunction was restored with the handover on site of court papers, Xtract published the xrf results from the 6 previous recon holes drilled.
https://www.lse.co.uk/rns/XTR/reconnaissance-drilling-results-kalengwa-kafeqtwin222tiy.html
Colin Bird, Executive Chairman said: "Our JV agreement for the Kalengwa pit area allows us to mine and process material 500m either side of the old open pit……….
Just seems an odd comment to state, like he is distancing the company from any wrong doing on Xtracts part at least.
Edit. Sorry, shortly after the high court judge dismissed the application to dismiss the 2019 injunction the results of XRF were released. The Court papers were handed over some time after on site. Does not change the observation though as I’m sure the company would have been aware of the application.
I got impression at AGM in 2021, that around 3m worth of equipment was required to progress the Kalengwa project, and that XTR were not therefore going to progress the project due to "uncertainties", and fact they had never intended to put that sort of cash up front.
I suspect within the next 12 to 18 month months CB will be saying
" that around 3m worth of equipment was required to progress the Eureka project, and that XTR were not therefore going to progress the project due to "uncertainties", and fact they we never intended to put that sort of cash up front."
The net result of these deals see nothing for shareholders but somebody is benefitting somewhere as cash gets shifted. Am I correct in thinking the deal with Kalengwa was at the same time as another of Colin's interests BZT ? Was the XTR deal done in some way to ease BZT in ? Is Eureka connected with that somehow ? Does Joel act for both XTR and BZT ?
Then there was the MozGold fiasco. I thought at the time that we didn't get a good explanation for giving cash to them after being told the benefit of having a stake was because Colin thought the alluvials were worth having a more direct interest in. We have had no where near what we were led to believe from the alluvials and yet that deal was done losing us money.
Manica wont give us a penny until MMP themselves declare a"profit". It almost seems like the aim is to use XTR to facilitate deals to benefit others.
We really do need to see some sort of shareholder value delivered Colin. The SP is marking the deals done to date as a fail.
So a seasoned explorer didn't know beforehand that it needed 3m worth of gear ?
Smelly.
CB having a PR drive of his various companies, with podcasts in fairly quick succession-
Kendrick 1st feb
Galileo 3rd feb
African pioneer 6th feb
By the weekend could he have rounded up the rest with Bezant and Xtract following release of the updated study one wonders!
>>>CB having a PR drive of his various companies, with podcasts in fairly quick succession- ?Kendrick 1st feb ?Galileo 3rd feb ?African pioneer 6th feb
Another Galileo podcast this morning, who’s next??
Tick Tock
I can't fault the logic of assuming we may be in the queue of this PR campaign, but tbh I'm not that bothered even if we are.
After listening to so many of the roast "interviews" on many of CBs companies, its clear to me that the roast boys are nothing more than CBs "head of public relations".
They are doing what Alistair Ford should have done. And doing it better than he ever did.
All great PR, but it will offer nothing to anyone already invested and for many on here we know to take, not just what Cb says with a sack of salt, but also the comments of the roast boys. They seem to get just as excited as CB when talking about the projects and never challenge him on any of his failures ( timescales or output deliver)
It should be seen for what it is -- a paid for promotion.
After listening to so many of the roast "interviews" on many of CBs companies, its clear to me that the roast boys are nothing more than CBs "head of public relations". Couldn't agree more A4444.
I was recently been removed from the Roasts Telegram forum for responding to a question 'Would you invest in another CB company' - I, surprise surprise, responded no and gave reasons based on my experience here which were around Bird's failure to meet deadlines and over exuberance (misunderstandings) RE:2MT in the bag.
I asked them why on the GLR forum and they claimed ignorance....Perhaps it was Bird himself! Either way seems they are only interested in rampy comments there which I guess is fair enough considering they are probably pulling in $$ from CB (us)...
>>>Either way seems they are only interested in rampy comments
Exactly, I really don’t see the benefit, which is why I have never bothered. I understand it is actually a good platform as you can post pictures and charts etc to share research. But without, I would guess any challenging opposing views that create healthy debate which is normal on a public forum. It is not for me.
Much prefer the amateurish forum fodder we get here from rinsing as much as possible out of another of CB’s puzzling comments from the latest paid for promotional podcast.
In jest of course, p issed again
I remain invested in various of Colin's companies but admit l don't have a clue which projects will provide the best investment and which will fail. These days l just remind myself they are all just holes in the ground. But hopefully one will be the 10 bagger .......
Howezap, how does that saying go ? 'In vino veritas.' You are correct, we waste time listening to CB's comments on Roast or another media platform. He has no credibility, his wishful thinking and optimistic statements simply do not bear out. All we can trust are the numbers in the RNS and even then, that is a qualified comment as they can be vague and conflicting, especially when you look at the quarterly mining updates.
Hi Eastern, I do think the main arguable point being is that CB has done a ‘necessary’ job in keeping shareholders interested with heightened expectations to get the market cap as high as possible to minimise share dilution from the fund raises that were had in ‘21 and any subsequent needed to follow on with a third phase. Potentially why he continued to suggest that the 2mt was achievable well into Q3 ‘22 as there were no guarantees up to a certain point that Fairbride was going to go into production.
There is no doubt the global economic downturn has been the single most contributing factor to the share price drop through ‘22 and in part, toward the market reaction when resource statements were released, along with the resulting disappointment from CB’s previous rhetoric of not seeing the 2mt.
With more income now from Africa, we do seem to already be seeing, and hope to continually see, a more pragmatic approach with reporting from CB as there should not be any further need to exaggerate optimism, particularly ‘If,’ the treasury can support the next drilling and other technical work required to get to the next decision point.
>>>CB having a PR drive of his various companies, with podcasts in fairly quick succession-
Kendrick 1st feb
Galileo 3rd feb
African pioneer 6th feb?Then another Galileo podcast. who’s next?? <
That completes the round up of his other companies. Although it doesn’t mean Xtract will necessarily follow but it would be welcome.
https://podcasts.google.com?feed=aHR0cHM6Ly9hdWRpb2Jvb20uY29tL2NoYW5uZWxzLzUwNTExMzMucnNz&episode=dGFnOmF1ZGlvYm9vbS5jb20sMjAyMy0wMi0xNjovcG9zdHMvODI0ODM5OA%3D%3D
Not invested in Bezant either!
Thanks Howezap for keeping the board alive. I think we will need you even more in the next few weeks before the release of the next reports.
At least Colin remains confident. Hopefully eventually it will come good across his companies. A year ago it all seemed so promising !.