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2.50 onwards ,https://audioboom.com/posts/8276536-midweek-takeaway-with-colin-bird-executive-chairman-of-xtract-resources-aim-xtr .
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.
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
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)
Hat tip to jamesiecakes too.. I hadn't read that post ahead of posting mine..
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.
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 ?
GORD
you are SO NAUGHTY
you must think I wos born yesterday LOL
CR💙