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I wonder what our new esteemed (sic) shareholder TW, will think of this.
CB needs to be careful as TW does have a platform to express his views to a wide audience. And he's not shy at giving his opinion. (whether he's right or wrong).
So 100,000,000 shares ffs
Men's testicles to the that..the sells starting to come in, PO forward selling maybe...Jesus just when share holders are about to prosper from manica, bird flashing the cash we haven't yet got a sniff at..with another purchase rumoured pyo88 will probably be correct 1p ..to tell you the truth this is stupid..if it does ever get to 2p adiós, I'll shut up for another 2years for now
@Blueballsnall.. it does...
Under "Key terms of the Agreement" - issue price of 1.25p per Ordinary Share
(Ref: https://www.lse.co.uk/rns/XTR/bushranger-copper-gold-project-australia-ruch7998ffjy5a3.html )
The acquisition shares were pegged at 1.25p - so a relatively small discount to yesterday's close ( about 12%). Not bad for a world class acquisition, providing that is what we have got...
CB is overstretched a lot with all his interests already.. and what does he do .. he overstretches himself further again?
I guess/hope this will hurry up his efforts to get a new MD into Xtr.. a good thing I feel but will add meaningfully to expenses too .... at a time when the co. has very little revenue STILL
A good asset seemingly and a good value purchase.. but that's only a small part of the overall point.
CB is a dreamer imho.. and he's got LOTS of money already and he's old ...so if bets go badly for him it's academic.. plenty here do not have lots of money.. etc..
PS: Another 'raise' or two to come here still this year, I altogether guess now even more than my post this morning..
CE - have you listened to the TW podcast I recommend to you yet?
Some good info on the potential costs of the projects you're questioning - can't remember the exact figures off the top of my head so don't want to misquote them...
For what it's worth, I took away from that interview that the bottom line was that the costs for what we have planned are definitely manageable, I think CB had a couple of different avenues for potential ways to fund the copper project(s) to production, one relatively cheap, one more costly but the potential returns obviously relative to the expenditure.
N.b. subject of selling projects once proven was also discussed as an alternative to funding further progression/production etc.
FYI - we're talking circa £1-£6m (I think), not stupid money considering our likely income, I don't want to be more specific in this post because whilst I have numbers in my head, I'm not 100% confident without a re-listen so don't want to misquote.
If you don't want to pay TW 99p, which I wouldn't blame you, I can re-listen and transcribe the relevant bits at some point soon... I'd rather not transcribe the whole interview though as it's over an hour long!
SP done at
Yes, so if deal done when SP was .7p,, now over £2.5 .plus we gave away a bigger % of mcap. RNS should have stated so deal was done at..
Also @Blueballsnall - worth noting that the people who buy/sell when it comes to acquisitions aren't stupid, they're dealmakers.. the likelihood of shares increasing in value would no doubt be factored into the deal.
As a hypothetical example:
I want to sell you an asset I value currently at £5m as i don't have the funds to progress it.
You want to buy the asset and have the funds to progress it from your other ventures but don't have £5m sat around.
I might agree to sell you the asset for £1.25m in shares in your company if I thought that you could progress the asset (which I'd benefit from because of the deal structure) and if I thought that your company was currently undervalued due to your other projects etc. subsequently meaning I would likely get that £5m target in value in due course (and perhaps more based on the success of not only my asset but the assets of your company)
In that instance it would be unrealistic for me to ask you for £5m in shares today because that's what I valued my asset at, and you obviously wouldn't give me those shares if you thought they would be worth substantially more in the future, you would make your business case and I would either agree and follow through with the transaction, or think you were full of...
The point I'm trying to make is that it's worth remembering that it's not as simple as a 'the price we pay is the value of the asset', especially as far as buying assets with shares goes.
I certainly see where you are coming from JDAU.
I'm not sure how much it will cost to prove-up Eureka or how much the production plant will cost at Kalengwa, not to mention the further exploration of Manica ? But providing CB does know these costs and has them covered then I am happy.
One thing I think we can all agree on is that we would all be happy to attend a 10p party...
Hmm..is the deal at the SP in March, today's SP..or at some future SP..
Blueballsnall… yes but if there holding grows by that amount then so does ours ? win win.
CE - "...committing to considerable medium term expenditure on multiple fronts before having any sustainable income.."
I'm not sure I agree with that part of your statement:
- The sustainable income from our various projects looks nailed on- at least CB is confident enough to act on that basis.
- The cost of development of the projects we're acquiring is significantly lower than our projected income - i.e. I would suggest that spending circa £200k on development of this new project in the first year whilst making several hundred thousand pounds a month from our other projects barely constitutes "considerable expenditure"
I do appreciate your concerns re other costs, plant construction etc. but CB has openly stated in interviews that the aim for these "blue sky" projects would be to prove them up and sell them to a bigger player / JV them in a similar style to our current FB HR operation with limited Capex.
I understand the cynicism but this is an aggressive shareholder value creation plan backed by income that is running along expected timelines.. for what it's worth, I'm behind it.
So we're issuing 1.25m of shares to buy out Prospect Ore, what is the price per share, if the gold mine kicks off they and people are talking of share bagging several times those shares could be worth 4/5m , I'm not as endeared to this as some.
Going down the acquisition trail and committing to considerable medium term expenditure on multiple fronts before having any sustainable income just seems to be a bit previous to me.
We should get about £10M per year out of Fairbride, if we are lucky That kind of money sounds like a lot, but if you need to carry out extensive test drilling, sample analysis and heavy plant construction in multiple locations all at the same time then it doesn't go very far.
The only way i can see the the circle being squared is if CB has been in discussions with the MMP JV over the future of Fairbride and MMP have mentioned a willingness to purchase outright following proof of concept once commercial production has started.
If this were so and CB could be confident of a large short-term ( less than a year) cash injection into the company, then that might well explain a lot? Suddenly everything else would become affordable and the company could grow at an accelerated rate.
I would be happy to hear any other theories that might be out there as to why CB seems to be making the company a hostage to fortune...
As far as I see it Andrew, the "additional risk" (aside from initial investment) is this:
"Exploration Programme
Xtract has agreed to spend at least A$350,000 (£189,000) on exploration drilling and resource definition drilling on the Tenements within twelve months of the date of Completion. The exploration costs will be funded from existing cash resources and future cash flows."
Reference: https://www.lse.co.uk/rns/XTR/bushranger-copper-gold-project-australia-ruch7998ffjy5a3.html
Appreciate your want for the SP to vastly increase though, we're on the same page on that one.. I'm just not sure how much more "focus" Manica needs when the cogs are already turning, like I said in my post below, we have the agreement in place, we have the plant being built and we have the timelines being followed.. what else would "focus" bring to the table?
ps. for what it's worth, I'm expecting news on other revenue streams in the not too distant future that are likely to originate from the projects in Manica - hence me not being too worried about the amount of "focus" in that area, I'm confident we're pursuing an aggressive timeline (whilst managing cashflow) with our other projects in that area and considering the next steps (as far as I see it) will be letting the operators get on with the work so they can pay us, I personally think that now is a good time to line up the projects of tomorrow.
Horses for courses though, and I appreciate your view and it's completely valid for you to feel the way you do.
JDAU
I'd rather CB got this to 10p as soon as possible and believe focusing on manica would do that sooner than any other project.
I think you are ignoring additional risk with acquiring more projects.
Depends on the drill results I suppose.. a new discovery / extension of existing plays could be worth mega bucks..
I'd be foolish to speculate too much on the basis we don't know much about the assets and a development program/potential operational plans/costs would be required to have any really useful numbers to work from.
However...
"The Bushranger Project hosts the Racecourse deposit, a JORC (2012) compliant inferred resource estimated at 71Mt @ 0.44% Cu and 0.064g/t Au using a 0.3% Cu cut-off, which is open down plunge and along strike"
Fag packet, that's circa 312,400 T copper (71Mt @ 0.44%).
Considering the spot price is currently $5,500 and is likely to increase (especially as far as CB's view is concerned) then that's a lot of potential $'s sat in the ground.
I'll refrain from speculation on the potential SP effect as we don't have the project economics needed to even remotely estimate what that might be.. suffice to say, I feel that the projects we have on as a company really are looking interesting.
What are the views on here when we talk about a game changer ? Say in terms of SP, what are the thoughts on here ?
CE - Absolutely agree with that statement. Recommended.
Having said that, owning a world class prospective licence in a proven area of a politically stable country is certainly one way of making the company a lot more attractive to professional investors. XTR will now be considered to be a much more reliable bet to many and I would not be surprised to see a few TR1s appear during the next few months.
Same question as I've asked CE directed to you Andrew, would you rather CB sat on his hands and did nothing whilst waiting for HR income when there are good acquisition opportunities? (importantly, opportunities that we can afford...)
CE - what would you suggest CB does to monetise the HR any faster?
We have an agreement in place with an operator, the plant is being fabricated to timescale as per RNS's / photo's on XTR website: ( https://xtractresources.com/photo-gallery/ ) and production is (aside from the pandemic effect) there or thereabouts in terms of the timelines we're expecting.
Would you rather CB just sat on his hands and waited for income?
Personally I like the aggressive style we're taking as I see it as adding strings to the bow for relatively minimal cost/minimal cash flow requirements and providing us with more avenues for potential positive news and several projects that have great potential - spreading the risk and increasing the chances that one of them could be a world class asset/complete game changer for the company.
Strike whilst the iron is hot I say...
We've both been around this bb long enough and I'm genuinely interested to hear your view though?
Hello CE
What's frustrating is that we have a fantastic asset in manica. We all want this to multibag and hit say 10p. We've got that 10p sp with the 1.4m oz at manica - probably more. One more heave and we could be there with manica.
Plant about to be built, all derisked. He can't seem to see whats under his nose !
In the TW interview he said he's looking at two more new acquitions... so we may get another RNS soon !!