Firering Strategic Minerals: From explorer to producer. Watch the video here.
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At the bottom of the article John Cornford gives an update on his current veiw of extract.
Just waiting like the rest of us.
https://masterinvestor.co.uk/commodities/does-lithium-offer-hope-in-a-tough-mining-climate/
Cornford article
"I haven’t mentioned Xtract Resources for a few months – after the last time saying that, following the initial excitement on the long intervals of copper shown by the initial drilling of Racecourse, the rather low grades disclosed by later drilling meant that initial expectations of a 2 million tonne copper resource that would attract Anglo American might be misplaced. I didn’t suggest selling (as I was tempted to do for my holding) because, as always in these situations, it is difficult to know what other investors will do when the resource still looks more valuable than the then share price.
As it is, the shares have drifted back to the low 3’s (and a low £30m market cap) reached when early holders had cashed their profits from the initial spurt from the 1’s to the 7p’s. The latest drift hasn’t been helped either by fewer excited blogs from CEO Colin Bird. But with all drilling results now in, and a new, apparently separate, resource discovered less than a mile away and named Ascot, news is due soon on an up to date economic model. This will be for a larger open pit than was assumed for the earlier estimate of 400m tonnes contained copper at Racecourse, and might also add a preliminary estimate for Ascot.
So, while investors are assuming Racecourse won’t meet the 2m tonnes copper target, what may still be worthwhile in their own right are the still unexplored Ascot and Footrot prospects, which might revive interest. That is especially so because a recent Queensland deal established a US$170m price for a smaller deposit (670,00 tonnes) than Bushranger. It is, however, more developed, with a Preliminary Economic Analysis under its belt and possibly better economics. So it’s all eyes on Xtract’s own forthcoming reports."
Can’t believe John Cornford wrote that piece that Andrew shared. Made he sound rather ill informed.
In his capacity, I would think he would have a better grasp of the buy back agreement. Placing emphasis on the 2mt with no consideration there is actually another option that xtract are now pursuing! He was tempted to sell but didn’t, because it’s difficult to understand what other investors will do???? Appears to be putting the drift back down into the 3’s due to the drilling results and Colin not helping with fewer excited blogs!! What about Covid, war, global economic instability. Are they not contributing factors?
Assuming investors are thinking that in their own right it will still be worthwhile even though they are assuming 2mt won’t be met, as there is still unexplored ascot and footrot! He obviously doesn’t listen to the ‘excited blogs’ anyway!
And 400mt of contained copper!
Come on!
In his position he should just stick to journalism and not commenting on his own investments.
And the main ill-informed comment by JC (imho) re Racecourse grades
"... the rather low grades disclosed by later drilling......"
The grades are standard porphyry grades. Not low.
Makes me wonder if JC actually understands anything about porphyry's ??
Or, worse, does he even know that Bushranger is a porphyry deposit because, as far as I can tell, that word was not mentioned in his article.
I suggest that very -very- few understand anything - /much - about porphyry's Andew .. which is a big problem in itself... witness the current xtr.l s/p for e.g
Generally, this guy is no mug in the space.. and if he doesn't understand much about porph.....etc...
The later holes were also testing the outer limits of the Racecourse porphyry and the grades are obviously going to reduce... it is the same for any porphyry anywhere in the world!
There may also be some doubt as to whether Racecourse can make the magic 2mt of contain Cu Eq by itself, but XTR have said they are also going to also provide a resource estimate for Ascot and this should ease concerns. Despite the limited drilling at Ascot - which is open in all directions - it is likely that when its' resource estimate is combined with Racecourse, it will total round the 2mt mark - the 2mt does not have to come from Racecourse but from targets within the EL7754 licence.
I would add that anyone who has been following the exploration of the EL7754 licence closely will know this multi porphyry system is likely to ultimately contain many times more than the target 2mt of contained Cu Eq... and make no mistake, AA and other majors will have been paying close attention.
I would be delighted if RC + Ascot MRE reached 2mt. I hope Steve' s right but I would be very surprised if it was more than 1.7Mt combined (imho).
I hope i'm proved wrong but I doubt it.
Yes, great idea, let's use the few hundred million to pay for our share of the capex and opex and wait 12 years for the mine to be built and then wait a couple of years for full production and another 5 years for xtract to start paying a dividend and then over the course of ten years we might get our investment rewarded.
It’s not that bad an idea lucky, think about it. Br sells now and the bloodsucking wife will only want to redecorate the whole bleeding house, again, and guarantee make you feel guilty for treating yourself to that Harley you always promised yourself. Besides, the brats will get it all in the end, so I say have the last laugh and make ‘them’ see what it feels like to have the suffering of actually having to wait for something.
Where’s all the money? It will be paid out imminently!
But I really do want a Harley