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Not seen this before - anyone else realised it was there ?
https://xtractresources.com/wp-content/uploads/XTR-Presentation-Feb2023_v2.2.pdf
Definitely not seen it before. Good factual information and might even bring in some new investors now that sp is in the doldrums!
Is very likely the deal between xtr and KPZ has soured opposed to potential returns from Eureka after the fallout from Kalengwa They were production ready to resume transferring ore for processing at Eureka after all.
Kajevo yes, was dud after only sporadic mineralisation came back so it switched focus onto Eureka.
Can’t blame their DD process for a partner being dodgy and in debt. (A big if so - granted)
Otherwise is a good up to date presentation.
-LoM Extension drilling at Manica finally scheduled in for first quarter.
-Confirmed we are now receiving 23% of op cash flow.
-Kakuyu is close to receiving immediate cash flow.
-in ‘process’ of acquiring further small scale ops and persuing others.
From growth potential of small scale mining ops.
>Opportunity to convert small-scale mining operation into longer- term larger scale operation that can justify a stand-alone processing plant.
Howezap
Partner DD is one of the starting points before you do any deal with someone…. Maybe things came to light/changed after the deal was signed which can happen obviously. My frustration isn’t so much failed project (Moz Gold apart which was a shocker) I expect that in this game but the way shareholders are told about failed projects, surely a presentation not mentioning a project isn’t how we should find out it’s no longer a focus (or hidden in the annual report). CB promised walks and all which is the least he can do, but sadly I dont believe he is doing this.
On a more optimistic note I thought the deck looked good and there was some information I didn’t know
Cheers
James
"Can’t blame their DD process for a partner being dodgy and in debt."
Yes you can.
Proper DD is done to ensure that you know that the partner is not dodgy or in debt !
>Proper DD is done to ensure that you know that the partner is not dodgy or in debt !
You would really have to be cynical to believe their DD was not done correctly. At the time up to signing you would certainly hope all was well.
It is ‘only’ a presentation and >>>does not constitute, or form part of, an admission document, listing particulars, a prospectus, a circular or any other documents relating to the Company.
It certainly doesn’t supersede the latest in RNS statement that no further was done there pending consideration of options for possible future development.
That’s not particularly enticing for new investors, to showcase a project that is parked up for whatever reason. So prob best not jump the gun and assume it is dead and buried just as Kalengwa is not either.
You would really have to be cynical to believe their DD was not done correctly. At the time up to signing you would certainly hope all was well. - You're right HZ, so why wasn't this picked up on?? (We found out post purchase it was all over the news)
- The thing is HZ, a pattern has formed and there's a common denominator here...CB. 1 or 2 feck-ups, fine, this is mining after all! - But you've got to admit he seems world class at picking up a new project that can't deliver anything, we just lose money. In fact the only project we've made money on was one that Jan Nelson bought!
Look at the pattern here. show DD to you?
- Buying a mine in the middle of nowhere and then realising, years later, that it's not going to be viable as it's too costly to transport. Poor DD in my book.
- Finding out your partner is some sort of mafia boss and it's been all over the news in Africa. Poor DD in my book.
- Giving 450k to a diamond miner to get him started on out alluvials only to find out his...wait for it...diamond mining plant is useless for gold alluvial mining. Poor DD in my book.
A big find, Odyn knows how many years ago, was all well and good but Bird using us and our money, as risk, just to show the market and his ego that he's not a one hit wonder...
I say again, it's long overdue you took a step back Bird. We need someone at the helm that cares about the company and it's shareholders.
I feel the reason CB doent do robust DD is because he's obsessed in finding another Kiwara quickly and knows time is not on his side . I wonder if his approach would be different if he was 30 years younger??
He seems to treat these acquisitions like someone buying lottery tickets. He thinks the next one could be the big one !!
Reading the presentation today, it seems hes not going to stop buying more lottery tickets. Understandable really ,as the shareholder's are the one's paying the cost of these tickets :)
Remember when he spent $150k on somebodys copper tailings dump only to test them and find hardly any copper left (surprise !) Just walked away with a shrug of an RNS, you would have thought he would have asked to test a bit first but as somebody said, it's not his money is it ?
A lot of long time XTR/CB believers starting to get more than a little frustrated… myself included.
We are two months into the year now and still awaiting the updated modelling expected ‘early’ 2023. CB needs to bring this in on time and make it spectacular or there really will be mutiny in the ranks.
I’m trying to only check-in weekly now (unless and RNS lands)… mental health preservation tactic!!
Hi Steve you’re not missing anything, just the usual, good disciple bad disciple stuff, same stuff different days.
Granted gixxer my only response on Kalengwa is that it was mined alright for 12 odd years beforehand. Economics of it would be swings and roundabouts comparatively then and now of course, but the reason given it was subordinated, was its remoteness and lack of power, so for all we know they could be waiting for copper price to rise, and or the company being in a stronger financial position and when more company resources become available. As we know they have been concentrating all in house efforts on BR which may explain why Kalengwa was deemed to be not as important.
Just a theory that does hold some credibility.
Yes its frustrating, but I still believe there is a good chance of a substantial re rate from FB income (at full capacity) and Bushranger. But we may have to wait until second half of the year before that happens (yes I know thats not what CB said :)
Apart from the usual missed timescales etc, one of my main frustrations is CBs obsession with Zambia and trying to find the next big thing.
"The definition of insanity is doing the same thing over and over again and expecting a different result."
Just focus all time and money on FB and Bushranger FFS !!
Should that be PFS Andrew ?
Just checking
From the Kakuyu JV agreement?>>reimburse US$90,000 to Oval in respect of stripping and mining to date on the Kakuyu Project, to be settled from cash flow by the reduction of Xtract's percentage share of net profit from 60% to 20% for the period required to reimburse Oval.
Appears Xtr have paid back Oval the cash for pre strip and previous mine work directly up front. Rather than taken from cash flow.
From ‘23 presentation
Xtract refunded US$90k to JV partner for historic pre- stripping work and a further US$60k for the first month of pre-production mining. Recouped from cash flow
Could be construed as showing there is a good business rapport already between xtr and oval. As of first cash flow now, it would suggest xtr would now receive full 60% net profit from start up as opposed to reduction to 20% during payback to Oval. Has made for a simpler process but shows good will too from xtract.
The extra $60k comes from a ‘separate’ mining contract agreement with Oval paid up front for the initial start up which is recouped from cash flow too.
Sceptics need not be sceptical
I tracked down Oval’s head office to a portacabin in a storage facility so just called their number. A nice lady said the boss was unavailable for comment but there was ‘nothing to be concerned about.’ She said the boss is currently p155ing it up in the Bahamas and will get him to give me a call back on his return.
So that’s really encouraging!
You’re welcome
Guy
Great first post MaBaker
Very similar to the first post by Dani and Russiangirl and Bauhaus :)
New Corporate presentations have appeared across a number of Colin’s companies over the last few days. None of them announced / RNS’d , but the websites updated at the same time
The Galileo one appears to have been prepared by Martyn Churchouse. They are all in a very similar style
Perhaps this points to a new approach to marketing / commas.
Ours was also prepared by Martyn Churchouse.
MC has some involvement in a number of CBs companies and is MD of Kendrick Resources. He was on the Sunday roast talking about our latest Zambia asset
Succession planning by CB??
Not sure how up to date this is but here’s some background on Martin Churchouse:
Martyn is a geologist with over 35 years’ experience in Europe and Africa in exploration, mine development, feasibility and as a mine manager. He worked for Anglo American and Gold Fields before joining the Junior Mining Sector and has been involved in bringing several exploration companies to the AIM Market. Martyn was an adviser to Georgian Mining Corporation prior to which he was Senior Adviser New Business Development to Lundin Mining Corporation. He has been responsible for a number of discoveries and successful definitive feasibility studies.
https://www.google.co.uk/search?q=Martyn+Churchouse&rls=com.microsoft:en-GB:{referrer:source?}&ie=UTF-8&oe=UTF-8&sourceid=ie7&rlz=1I7ADFA_en#fpstate=ive&vld=cid:c5fe43b8,vid:1oetnrw5u0w
Comes across OK - Certainly seems more pragmatic than Bird
Don’t forget Caerus Minerals in Cyprus. JV with Bzt and either JLP or GLR, not sure which, but that went stunningly well!
Succession planning, I hope not! Just be another CB, spread so thin he would be hardly visible, as CB is!
MD of a company in the Nordic area and talking about Zambia, how does that work?
What CB’s companies need is individual attention, not “today is Wednesday so it must be TIR” or such like. Less of the thin spread and more attention to getting some shareholder returns, sadly lacking across the board of CB companies currently.
CB has the right individuals in place across all his companies with the specific capabilities, values, and experience to manage and move projects forward. If he couldn’t keep on top of his own workload across his various companies, he is astute enough to do something about it. If it were at the detriment of any those particular businesses. ??As an example, he stepped down from jubilee metals as at that time he felt a more suitable candidate with different set of skills would be better for them in the next phase of their evolution as a company. CB admitted his skills were more appropriate to companies which are at an earlier stage of their development.
He has vast experience needed to grow xtract into a ‘sustainable’ mining and exploration company, now that the company is at a pivotal point in its own development. There will be increasing, positive cash flow to sustain that growth now.
Well well, Dani Baker, used to love him on the radio in the nineties
"Right individuals in place across all his companies......"
Problem is that a lot of those capable people are sread over many of CB's companies. Do a spreasheet, companies, obviously not all 20 +, across the top, list of directors against each company below and look for commonality!