Member Info for Andrew4444

And those calcs are excluding Footrot !

I may have misheard CB yesterday but I'm assuming hole 1 was stopped before yesterdays interview as CB said yesterday

"We had to wait a while for it to stop"

So that sounds like it had stopped before the interview? He also said we will be reporting on that soon, so again that implies it has stopped .

I'm assuming it ran on for a day or so longer than anticipated so maybe 650 to 700 mtrs??

I hope that assumption is wrong and its still drilling, but that wasnt the way I understood CB comments re hole 1.

mis least = mislead

Lucky

I;ve been critical of CBs timescales before, but in this case I don't think he has mis least anyone....well not yet anyway.

If you assume drill 60mts a day x 2 rigs thats 67 days to complete first part of phase 2. ( 8000 mtrs). Add 6 weeks for final hole assay = nearly 4 months. Start mid July = mid November finish. Very similar to CBs guidance.

20,000 drill prog at 120 a day = 5.5months = end of year from Mid july

CB was giving end of year for drill prog (only no assays) to be completed but November for first part of phase 2 AND final assay of last hole in phase 2 part 1 to be completed.

My understanding is you take off the discount from the NPV and that amount is the purchase price.

So to have a finger in air assessment of sp then x NPV figures at end of Iceberg blog by 0.8 (IF it is 20% discount) and then x by 0.53 to convert to £ from A$.

As we have 1B fully diluted shares you divide this amount by 1b and get the sp.

That's my understanding. Happy to be corrected. Discount may not be 20% though.

This may not be relevant as I may be comparing apples with oranges, but the Manica Hard Rock option to purchase had a discount of 20% ie 80% of NPV

Option to purchase the concession

The Company has granted MMP an option to purchase the Fairbride concession, subject to all parties receiving necessary regulatory approvals including, but not limited to, the Company obtaining shareholder approval, for an amount equal to the greater of:

· An amount equal to 80% of the net present value using a discount rate of 15%; or

· US$20 million

https://www.lse.co.uk/rns/XTR/manica-hard-rock-collaboration-agreement-ghoo8qdt7s68ji6.html

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I am also a bit surprised by the lack of movement in SP after the presentation and news yesterday, but I suspect many now want the company to "Show us the money " (figuratively speaking) before getting too excited and believing the potential will be fulfilled.

This co has a history of false dawns and that may be in the back of many shareholders minds.

Your comment in a previous post....". I just think we shouldn't count our chickens before they are hatched " is probably what many are thinking.

Not too sure there's much of a cash drain from African assets? Company makes a small loss but not significant and much less then cost of drilling. By end of the year the African assets will be producing at least £300K a month profit.

That said, even at current loss due to African assets, the investment case here is excellent and yesterdays news reinforced that .

If POC keeps going up at its current rate, we may not too far off the required $5 per lb / $11000t (as stated in the RNS) sooner than some thought !

I think the current JORC is not quite economic, but close.

So if economic was above 0 (on a scale of -10 to +10) we are probably at -0.5

We would have to be very unlucky not to increase the resource significantly after phase 1 and 2 drilling completed. As RNS stated..

"When the results of the Phase One and Phase Two drilling programmes are incorporated into the Racecourse mineralisation model, Xtract expects that the Inferred Resource will increase significantly in size, which will have a strongly positive effect on the overall economics of a mining operation at Racecourse.”

If current JORC was far away from being economic ie -5 on my scale, then we would have to have very good drill results to get it significantly in +ve figures. That would be a concern. As its just below 0 on my scale, the phase 1 and 2 drill campaigns should take the economics to a very healthy figure imho. Even at current POC.

The RNS is not good if you ignore phase 1 and 2 drill campaigns, but you cant ignore those as they will build on this platform and make the area very economic.

That view and interpretation maybe wrong, but that's they way I see things.

I must be reading the RNS wrong or misunderstanding it.

I would have thought that RNS would see a spike in SP and many posts about the excellent good news.

"Other than Proactive Investors, I have NOT seen Mr Ford giving interviews anywhere else."

About the time of his non exec appointment, he did an interview re Xtract outside of the Proactive Investor platform. Many LTHs said, at the time, that they thought this was going to be a PR offensive with AF doing more promotional interviews.

If there is good reason why a mining journo can't do promotional interviews re xtract (maybe there is) then I don't know what added value he gives us or indeed, what he does for us?

Has been a non-exe director in Xtract for a year now.

What does he do? What has he done for us?

I ask as I've just seen him doing a great job promoting GGP in an interview on Proactive . Shouldn't he be doing that for us?

I hope we are not paying him a salary.

Looking at location of North Parkes, Cadia and Bushranger - Hopefully we are at the end of that "sweet spot" corridor running diagonally down from North Parks through Cadia and through bushranger at the bottom of the corridor?

Or is that just wishful thinking :)

We should know by end of the year latest.

"It is quite likely that this will turn out to be 10-12 million tonnes in ground resource once the extended area is included."

I really hope so but very much doubt that. Its certainly not "quite likely".

That would make this deposit 1.5 times bigger than cadia and the second largest deposit in Australia - behind Olympic dam.

Also, It would also see the sp rise to between £2 and £2.60p

If Carlsberg did first posts........

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Thankfully CB is a great poker player and understands all the rules of this game.

In my many years here I've seen CB imply he's got a Royal Flush when he's actually only holding a pair ...... of 2's :)

"I assume there are no plants nearby that are likely to want the ore?"

Newcrest own cadia and rideway. They are in the LFB and not too far away. I've always thought that it more likely that newcrest will be the major we sell out to (assuming we do sell out) as they have the plants nearby .

I'm assuming we can reject any AA offer - CB has stated we dont have to accept the independent valuation so assume we can reject that offer.

So I would think (maybe wrong) that Newcrest would make a better offer than other major due to current plant and infrastructure set-up in area???

Face

Its been stated before by CB and in the prospect ore info, that drilling costs are circa £150 a mtr, so the 8000 mtr programme will easily be met by current CIB. I think a raise will only be required if we dont get any income this year from FB and the 20,000 full phase 2 drill programme is completed before end of this year.

CB has already stated in the end of year accounts that he doesnt think a further raise will be required over next 12 months.

Nothing is certain, but I am reasonably confident that we wont need to raise again this year.

Yes CE, a few income streams should be coming on this year. It will be interesting to see who is first ?

CB has previously said Kalengwa is 6 months behind Eureka. Assuming that's not changed, I would think we wont be getting any income from Kalengwa until next year?

We'll see.

"The biggest problem for early stage explorers seems to be the dilution for shareholders associated with raising funds for drilling."

True. But Xtract will have £300K to £350K FCF a month by end of the year from Fairbride. Assuming we dont run out of money before then, no additional funds ie dilution will be required. CB confirmed this in the recent full year results.

"Upon reviewing those cash flow projections for the forthcoming twelve months, the directors consider that the Company is not likely to require additional financial resources in the twelve-month period from the date of approval of these financial statements to enable the Company to fund its current operations and to meet its commitments."