RE: XTR: Bushrangers Copper & Gold, Australia [John Cornford]25 Oct 2023 12:08
Article text re XTR
"But HUM doesn’t look like being one of them – and neither I think will be Xtract Resources (XTR) who I haven’t mentioned recently because there’s not much to report except of its 23% profit share in the Mozambique Manica Fairbride gold project. There, production has been increasing steadily, but its financial results and prospects are still vague. XTR’s latest six months to June only included 3 months to March from Fairbride, when 4,522 oz produced was worth a net $1.3m to XTR after costs. Projecting the rate of improvement could give an annual $5m to Xtract (current market cap $12m) although I wouldn’t count on that until its full year results next March. If so it could tide Xtract through its next few years spending on the’highly prospective’ copper exploration projects it has entered into in Zambia. (Where have we heard that phrase before ?)
Other Xtract news worth waiting for however is an up- dated economic study being worked on its Bushranger deposit’s 1.3m tonnes of open-pittable copper, where recently tested ore-sorting technology is promising much more efficient mining than the previous one. But while Xtract is ‘excited’ by indications that production itself will be highly profitable (even at current copper prices ?) it is before construction costs, and we’ve seen how those have been rocketing. So the hope is that the scaled down infrastructure enabled by ore-sorting will outweigh capital cost increases and maybe attract a buyer . Its why I think Xtract is worth holding onto for news."
Sign In
Follow the stocks
