RE: Copper through $10k4 May 2024 21:36
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.