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I'm fairly confident this one wouldn't turn out to a Dead Donkey over licence issues, Mr Ben 'owell....
(would get reinstated, if even needs be, one way or other.. ps there might be sundry licences therein and happy to let less focus ones expire..or new licence issued in new JV name , hence cancel old one .. or some such non issue ..etc..)
This turning out to be a Dismal Duster in the end is a clear possibility I do get though...But such is the nature of the game, not least from 'time to time' with Mr Bird's 'oles..
And no better man for under rug sweeping of Dead Ducks than Mr Colin Bird !
To quote the one and only Dennis Skinner, DD = Dodgy Dave.
He was quite right, too.
DC (Dodgy Dave) and CB ((in)competent Colin ) would make an interesting pair.
Dare Devil ?
(The one and only... Mr Colin Bird)
Due Diligence
DD?
Sounds like the usual DD by the board again. Lol
I hope Jack hasn't been sold some magic beans.
Flip
Not sure if relevant but cancellation listing is dated 2 April
SK announcement dates 3 April
Yours cruelly
I see AFP have also had a license cancelled. Also Oval but not sure if it is one of our joint ventures without checking. Not a great read. I know before AFP had a few licenses on the list for non pegging but not sure the reason why this was cancelled. Given how many that have been cancelled at least finding replacements won't be difficult.
Recently I noticed the following website after which I email XTRACT the below but have not heard back from them: https://www.mmmd.gov.zm/?p=2787
"In regards to the new JV for exploration licence 26673-HQ-LEL ("Silverking") I came across the decision from the Zambian Mining licensing committee about the cancellation of the mining rights due to non-compliance.
Would the company (Xtract) mind to comment on this please? "
Any thought from the group in here?
Zap
You asked
What are others opinions on why the deals are structured differently
Is it because SK already have a resource of 237k T CU so far?
To make it official they would need a Jorc?
Whereas the other two licenses requires drilling campaign to determine if there is a resource or not
Bushranger gave an outline script for Colin Bird story telling at its best Mr Zap.. It's far from sure that what we have in Zambia will throw up such a wonderful story line...hopefully it does and, one way or other, it might, I grant you ...and hopefully existing shareholders move on from the past if/when Mr Bird tells another great story, and average down at least somewhat.. that's important for a recovery here imho.. (they haven't for such a long time now, many many months of abject -squared - daily trading volumes show)
PS: While VERY different sorts; in the round, I rank Mr CB and Mr NvS at ARCM at similar capability levels.. and I see a decent amount of medium term /longterm holders have continued averaging down there thru broadly equally s/p torrid times to here... etc..
Yeah I agree on that front NtM, it will need a steady flow of news to drive it on, the resource sector is generally seen as being anywhere up to a year ahead of global economics trend being seen as a precursor toward economic recovery. It will need all the ducks to line up so Colin can get the big guns out! It will move quick but timing needs to be right.
Don’t know what folk are worried about, he rallied the market in ‘21 that see a value of £50m + market cap reached. With far less evolution of the main assets at that time and without any kind of significant income that with what came in from alluvials, didn’t even cover co running costs.
There will be no shortage of news.
There will also be latest audited report to show up to date fundamentals and cash position to the market.
News flow may follow after that report is out so investors can make a good case for buying in. ??
I braodly hear you Mr Zap.
I think the micro cap metals explorer sector turnaround started a little while back now too.. I just want xtr.l to at least stay in line with this general recovery as it plays out, on paper it absolutely should at least do that imho.,.on grass it hopefully will...but it might not is a nagging doubt.... and the best way to quash any such doubt is an unequivocally progressively tangible RNS asap.. and there should be food for such nowish, I'd hope..
Is expected to see a 4X correction from current level across the resource sector when it turns.
We have certainly had the fall back, over the past couple of years it seems +/- some would say ‘crash’.
With clear shoots of recovery being seen across the main economies, the next phase is going to be ‘up’. The trends are usually very predictable
The crash is done!
So far, alas... and, of itself, may easily not do even if/as it gently further progresses...
and recent SilverKing mine in Central Province Zambia JV RNS announcement did nothing to see buying interest in xtr.l shares either, so far, alas ...
and I think Mr Bird doing a Roast podcast on xtr.l would do little to help the s/p alas, UNLESS it was a follow up on an unequivocally tangibly progressive news VIA RNS !
Summer is at last in the air ; the Zambia drilling season is also now upon us and the xtr.l Bank balance is hopefully in a good place from Manica payments so far: So please up your meaningful RNS game very soon Mr Bird.
(This share can rally decently/quickly from such an extremely lowly level, I believe.. and Mr Bird's dirt on the for reputation in the eyes of many can be overcome by attracting a new generation of punter in here which in turn could restore a little faith amongst suffering existing share holders here .. and upward - sustainable - momentum therefore be at last re-established here)
IMHO & DYOR
There is a difference in comparison between the buy in JV terms of the two western foreland exploration licenses and Silverking with Cooperlemon
For the two WF licenses, is for an initial, but not less than US$2m spend for a 65% interest. Furthermore if first phase warrants the second phase then will see a further US$3m spend.
A sale before phase 1 is complete will see Xtr receive 55% then would increase to a 65% return into and during phase 2.
Cooperlemon are without option to increase or retain their present or adjusted interest with this buy in deal.
However, the structure of the Silverking buy in terms has the allowance for Cooperlemon to maintain its interest after the phase 1 buy in period by Xtr in the Licence through an option to earn back up to 70% by participating in the ongoing expenditure of phase 2
If they do not decide to contribute toward the US$1m spend toward phase 2 then xtr interest increases to 70%.
On face value, both WF licenses are clearly looking to be sold on, or at least there is an expectancy that it will be of high interest for M&A activity with any exploration success.
With the Silverking mine and surrounding areas of interest, Cooperlemon clearly has high hopes too for SK. Which on face value is looking to be a longer term mine development proposition to receive cash flow from.
What are others opinions on why the deals are structured differently?
Would value your opinion too BizzyLizzy
No Andrew, although strategy and what’s stated in company mission are no doubt echoed.
My point being, an investor has to have the confidence to not only just understand the supply and demand side of copper, but also be able to agree with their mission to exploit that need for demand. We are seeing the company ‘actively’ follow that plan with new acquisitions.
There is a good and very experienced management team , a plus for any backer with the biggest positive toward backing Xtr or any of the other in the stable of CB companies in fairness. An investor will, or should want to back someone that has previously defined a large resource and sold it.
It doesn’t matter if the sale of kalumbila was years ago, it is a rare occurrence. And one that the market should be reminded of or made aware of. Anyone that thinks he should be stepping down I think should reconsider on that basis.
Every analyst I’ve listened too recently are repeating all of those same things, that investors should be looking for when picking companies for their portfolios.
Excellent and accurate summary. You do not need the role of PR rep -or the title for that matter. Just continue as you are in your present niche !! That said, the PR from Xtract is abysmal. Always has been .Typical of all CB companies. He relies on the Roasties for PR and they are a laughing stock.
HZ
Did you get all that from the company website :)
If not, I would recommend you apply for the post of PR rep !
What we got?
The company have a good plan and a real opportunity to fulfil its objectives from free cash flow. If you have the belief that copper will see huge demands placed on it against increasing supply headwinds, then you can get behind that plan and now knowing it has breached US$10k.
You can clearly see the strategy in play and the path the management are taking with recent acquisitions through JV buy ins. For a junior, having significant cash flow guaranteed until ‘27 to cover operating expenses to further develop projects including drilling, sets Xtract apart from most of its peers without exception. This is being achieved and looking likely they will continue to do so without diluting shareholders unnecessarily.
With the wide spectrum of risk and the different types of company from across the whole resource sector, from pure exploration plays through to major producers. What that income means for Xtract attracting new investors, is that the company have moved out of the bottom tier of junior explorers that must make up 80-90%+ of all companies in the resource sector that ‘rely’ on raising capital from shareholders via allocation of new shares.
With positions prioritised in the highly prospective Western foreland, having that full operational control toward increasing license values, free from any controlling senior partner. Positions will be more vulnerable as prime targets for M&A activity when it intensifies.
Then there is BR and other exploration plays in Zambia that have huge upside potential and the chance for Xtr to have further cash flow from mining operations under their small mines strategy.
I’ll take the Pepsi challenge.
Top form NtM, that was a quick witted response.
Colin Bird is to be found hanging out around my nearest Little Waitrose and Tesco Metro - both on Old Brompton Road, South Kensington within 100 meters of Xtract HQ - so I'm doing some of that by betting here thanks Olderandwiser.
N2M, with that philosophy of life, you should instead be donating your capital bit by bit to your local homeless person outside your nearest Waitrose/Sainsbury/Morrisons, and see the tangible evidence of your generosity of spirit.
''Is he creating value for us or for someone else? You never really know with Colin..''
Interesting question Ben 'Owell...but I'll leave it to others to answer that...
As it's a slow day, and for my own entertainment, I'll look to derive my own question to answer from the above but taking out the ''for us or for someone else'' bit leaving : 'Is he creating value''?
To the extent of him directly and indirectly paying salaries for a bunch of people - who pay taxes, buy stuff etc - he is certainly contributing his bit to keeping Capitalism ticking along, in fairness to the man. And there's always the chance he'll find what he's looking for too .. and that becomes a production mine.. and the sundry further value add that can come off the back of that... as in Manica for a small eg and Kiwara for a big eg
And to the extent of us Shareholders getting lucky then we can/could derive financial benefit here too.. Granted the History of AIM especially generally shows that shareholders are often effectively 'donating' our money... in such circumstance I absolutely believe we're adding value to the World..as in us allowing all the above to ever have a chance of happening in the first place, so fair play to us all too. And whenever I get annoyed/incredulous/despairing of this game, I always fall back on the thought that by even playing this game, at least I am doing a bit to contributing to the World ticking along:
Happy bank holiday to all