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For my understanding, if we decided not to DTM, and we don’t have 2Mt then buy back option is not triggered, so what stops us from then talking to other potential buyers? I presume nothing, yes? Or are we somehow then trapped legally. Can’t believe that’s true. In which case AA certainly don’t hold all the cards…..
LW
I've listened to the Thursday interview twice and my understanding is that we don't need to raise the money but just show how we would raise it. CB talked about showing AA the "figures" but my understanding is that he was talking about the figures in the economic model.
The model is designed to show that there is a business plan which shows there is a viable business model that could be financed and would result in a profit and when, against reasonable assumptions and proven figures. Think of AA as being the bank who are looking at a business plan to see if you should get a loan in principle.
So my understanding is that we don't need the financing, but a credible pathway on how we would get it and when and how much profit we would realise.
Another thing that needs clarifying from the interview is that Colin said he hadn't approched AA as they would want to know about our financing to support the DTM. That sounds like we cannot announce a DTM which would trigger AA to make an offer. We now know we dont have the 2mT CuEq which was the alternative way to trigger AA into making an offer so basically are we now in a position that means AA hold all the cards. They are not obliged to make an offer under the terms of the agreement and Colin implied they wont accept the DTM unless we have financing in place. Have we now got a 1.1mT resource that we literally cannot shift on as the AA agreement wont allow us to ?
LW
I understood he was saying the incremental value of each tonne (once Capex was paid back) would be $10/t or approx $200m gross profit a year. However I think it should be taken with a pinch of salt as I’m sure it’s the optimistic view and my understanding could of course be wrong.
Cheers
James
LW, you mischaracterize me. I am certainly not dancing in the endzone, or going on an "I told you so" national tour. I have had plenty of investing disappointments, and it's naturally hard to hear the negatives in those moments. Please, don't just assume I'm a ####, (we all owe each other that much at least.) A negative opinion doesn't imply negative intentions.
I'm still happy with my summary from 18 months ago...
RE: Colin Bird08 Jun 2021 16:29
Howezap is possibly the most enthusiastic liar here. The drilling results were a massive fail. NOBODY wants 2 million tonnes of sub-ore, least of all Anglo, who have hundreds of more attractive deposits in their little black book. All the gibber jabber since then has been designed to dance away from this brute fact.
A4444... good post. I think Colin needs to address without delay what he is basing his 200million per year revenue on. If he doesn't then for me it is demonstrating that it is indeed merely voicing wish lists. Unprofessional and misleading at best.
"a crap deposit".
A near surface "crap" deposit, not 1km underground like a certain deposit in Equador that I'm unfortunately also invested in.
It may be less than CB ramped it to be and I'm in no way defending his deception, but I don't see the need for block caving at Bushranger. Cascabel will be smelting their first copper when Bushranger has already produced enough to displace several battleships.
Lets see which one sells first and by how much profit from the SP's they are ATM
Porvenireal... let me explain something to you. There are a fair few LTHs here having discussions about their investment. Your transparent glee at their concerns is both cheap and unwanted and lacks class.
Joe, youre doing the hopeful, "next consequences" speculation that follows from demonstrating a good deposit. It just sounds silly with a crap deposit.
LW,
You re missing my point. I don't forsee us retaining 20%... for me it is going to be a complete sale . I'm just puzzled when people say, where are we going to get the money to fund 20% of the CAPEX?..... we will have just been paid for the other 80%, our MC would be high enough to raise easily and as the CAPEX will be against plant we would be able to raise through debt as well.......
Colin has made so much noise about not doing a JV for this, so this is just an academic discussion. I quite like the idea of that 20% being converted into a royalty stream as it would be a good longer term underpinning of the shareprice once we have had a special dividend and the company is back to exploring.....
Gooner221
Yep, and maybe CB will now realise that the short term benefit of being overly optimistic (yes I'm being kind) is paid for with interest when the facts are known. That may mean he will now be more circumspect in what he says?
(Yep I know that's nonsense and he will carry on giving us his wish list of events in interviews pretending they are realistic or likely expectations)
Same question asked what you mentioned & that is what would have happened with sp, if the expectation of amount of copper had been around the 1mt & not 2mt of which was all down to CB.
XTRACT AT 45MINS 15 SECS
https://audioboom.com/posts/8203544-sunday-roast-featuring-hanno-pengilly-ceo-of-ncondezi-energy-aim-nccl-est-ben-tm1-jlp-xtr
If an open and unfettered q&a with honest answers made the shareprice worse, would you be ok with that? If so, at least you're a reality-first investor. In a ceo's job description, honesty and positivity are always the top two criteria, but they will often conflict. Now, he could've said 6 months ago, "forget the 2 million tonnes, we're looking more like 1-ish," which would've been more honest I guess, but with the drills still spinning you're always running on hope. And that would've just brought forward the current price decline, and much the same people would've taken it in the neck.
His positivity has become harder now, with the minus-so-so results.
BTW - if you want some anonymity. I took me <5mins to set up that email address and you don't have to give your name at this point.
OK - Not even had a read receipt to my email below and I sent it to numerous contacts at XTR.
I think a way forward would be to get enough shareholders 10%+ Not necessarily to force an EGM but to force the BoD to take us more seriously and hold, at least, an open Q&A in the near term (the next few weeks IMO).
In light of that I've set up an email address, could anyone who holds shares please contact me via this email address and summarise what you'd like i.e. EGM/Q&A and list the number of shares you hold. Ideally we want 10%+ as we then do have the power to force an EGM.
resourcesxtract at gee mail dot com (hopefully that works)
Mr.Bird,
Well, after the 1.1MT bombshell has been dropped I was quite surprised to hear you, almost, berating shareholders for being unhappy with the results. You must realise that you'd set expectations to the market in many interviews and the results, to date, are well below those set.
I feel, in order to restore some good faith, and allay some SH frustrations, it would be good if you did an open Q&A session, perhaps with a few of the Aussie team also?
Regards
Dr JJBrown
(Email sent to Company)
Think, somebody mentioned for EGM it takes 10% of shares in issue held by holders to request one.
Overall though a straight Q & A would probably be the fastest route to take that though is down to whether or not CB goes for it.
The EGM though I think he would have to attend.
Their ******* not mine.
Aren't algorithms wonderful!
Don't disagree ****nal221.
We would like clarirty; fat chance as spreading confusion seems to be CB's approach. Wonder if he really knows?
An EGM would need a resolution, other than "communal winge".
Zak or Roast could maybe host a Q & A, worth an enquiry, but he is their pet podcaster!
What we don't need is a side order of Zambia! Alluded to in one of this weeks podcasts.
What are the rest of the Board doing? Joel and Kjeld both have directorships with other CB companies (Galileo and Kendrick), don't know about Ford. So at best they are part time on Xtract. As is Colin!
Dust has a while to go before settling completely in my view.
As has been mentioned.
The best thing for shareholders is a Q & A or an EGM meeting.
We haven't been shown where Colin gets the 200million per year revenue from or did I miss that somewhere. In 18 months time will Colin declare that shareholders misunderstood what he meant again ?
Joeman... leaving nothing for shareholders until the mine is up and running. I for one don't want that. Colin said previously he didnt want a JV as then the major partner would be calling all the shots in terms of the timescale and development program. If Colin's revenue claim of 200million/annum is in the right ball park what do you think that 4billion over 20 years is worth to someone ?
If we sold the 80% to AA for 200million we would then have the funds to pay our share of 1billion CAPEX.... not sure what I'm missing here.
But it is academic as I think it will be a total sale 100%.
If there is a good reason for saying what he has it would have to be good enough so that the why has made the SP fall worth it in what would hopeful be the short term.
He has the data... he could share what he knows but needs time to plan something so making us wait for the official revised open pit study gives him that time ? Who knows what Colin is thinking. He did say he doesn't want to chase unjoined bits of resource. I suppose Ascot is different as we did start poking holes in it.