Member Info for CaveatEmptor

I think your valuation of £400mm could be correct one day, but of course there will be around 4mmm shares in circulation by then... so about 10p per share?

Good morning Trellis,

You should have received 2 emails yesterday - if not then check you spam filter.

Hello Jammer,

Can you please explain what you mean by 'high risk' , as CB said in a recent podcast that the project is well past being meerly prospective and so very low risk?

Many thanks in advance.

Sorry JDAU,

But based on a total enlarged shareholding of 557M shares, their 100M shares will represent just under 18% of the company (100/557) x 100. So it looks like all three of you are wrong.

Maths can be tricky so I probably got it wrong too :-)

Another good performance from CB. very direct again and makes a lot of sense providing he is right and Manica is at the stage where it will look after itself and give good income... Looks like the plan is to get the tonnage up in Autralia then sell back 80% at a big profit. We will see.

I doubt it LW,

Not much to digest really.

we have to accept that it is a very prospective acquisition bought at a bargain price from a very distressed seller that could not meet it's creditor payments without a £100K cash injection, so it will almost certainly add value for shareholders of XTR as we have the CIB and projected cashflow available to exploit the opportunity.

On the other hand, many of us believe that it is an unnecessary distraction at the moment when we are on the cusp of receiving significant income from the hard rock at Manica and that CB should be expending all his energy on getting the ball over the line.
If all the plays had already been put into motion to secure the hard rock income and nothing else could be done to expedite it then there would be no problem, but there are still contracts to be negotiated for a fair chunk of the hard rock license areas and therein lies the source of the doubt felt by many.
So, a good purchase that will add value, but maybe the timing of the acquisition could be better? The result, as we have seen, is an overall neutral RNS that makes very little difference to current sentiment and the SP.

No reason why the SP should not continue with it's re-rate, especially if CB can guarantee that this new acquisition will not change anything at Manica as the purchase, at any other time, would have been seen as a bit of a coup.

Hello H5O,

Is that frank exchange not about Galileo?

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...

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...

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...

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.

I agree, Andrew.

I would guess that CB has decided that there will be enough free cashflow to cover our obligations here, but that does smack of putting the cart before the horse.

No doubt that this acquisition could well put us in a much stronger position in the medium term, but I do wish CB would concentrate on monetising the hard rock before following his passion for copper-gold exploration.

Has an alternative vehicle been found to complete the purchase?

Hopefully we will find out this week...

Thanks for that H5O,

With that announcement being made on May 11th, should BZT not have issued an RNS, as it seems that it could have an influence over the financial bearing of the company?

Not surprising if the sale is going through, as even a mediocre tipster can see a multiple-bag from.this level...

This may address your question more directly?

In the 1980’s, machines known as “high capacity” or “high rate” thickeners were introduced by various manufacturers. These machines are characterized by a reduction in unit area requirement for conventional installations.
Here, the feed enters through a hollow drive shaft where flocculent (used to help thickening) is added and is rapidly dispersed by staged mechanical mixing. Further, this staged mixing action helps to improve and enhance thickening. This feed is then added into a blanket of slurry where the feed solids are further flocculated by contacting previously flocculated material. Since there is a direct contact between rising fluid and settling solids, which is common to most thickeners, it is averted with slurry blanket injection. There are radially mounted inclined plates which are partially submerged in the slurry blanket; the settling solids in the slurry blanket slide downwards along the inclined plates, producing faster and more effective thickening than vertical descent. Level sensor are used to automate the height of the slurry blanket.

Hello Gixxer,

This may help:

https://www.911metallurgist.com/blog/how-a-thickener-works

All depends,

If the sale of Mankayan goes through it should be worth about 1p to the Sp, with good exploration results at Kalengwa, probably another 0.5p and once production starts at Kalengwa than maybe as much as 5p - but that would be very long term.

So short-to-medium term up to 1.5p ( providing everything goes to plan, which is by no means certain) and long term 5p (same caveat).

AIMO

MMs charging a premium for even small quantities of shares, so must be another tick-up due...

MMP look to have invested millions already in the plant they are building, so they will be keen to get production started as soon as possible.

Normally the market prices in short term expectations - so I would not be surprised to see a considerable increase from this level prior to the CIL plant being completed.

CB agrees with you, Andrew. In yesterday's VOX interview he said Q1 was more of a disaster than a disappointment. However he also justified the results without bullsh*ting and did say that production has already improved since arrival of spares 2 weeks ago- so 6 weeks of better production expected in Q2.

Even with the poor production Xtract still made an operating profit for the period. Although we are unlikely to get rich from the alluvials, some income is better than none at all and it means the operational overhead is covered, letting all income from hard rock drop straight to the bottom line.

As I said before, not a great RNS, but enough encouraging elements to indicate short term improvement in SP.

We shall see soon enough...