Member Info for CaveatEmptor

Well done Colin! (Never let it be said that I can be patronising! LOL)

But to be serious, taking the low-ball figures given by Colin for the hard rock income to XTR it works out at a little over $500,000 per month, which is consistent with the previously reported $6,000,000 per year.

What would that kind of income do to the SP?

So, yes, well done Colin! With not even a glint of patronisation inferred.

GLA.

Hello Andrew,

My understanding was that whilst Sino II was allowed to cherry pick the alluvials they would run out quickly but now that they are obliged to process everything they will last longer. it might be a good idea to get clarification at the AGM, although i have a feeling CB will say "How long is a peice of string/" - if a rich vein of alluvials is hit then I am sure production will continue longer ( just like with Omnia on their concession next door). If several rich veins are found then, who knows?

As far as I am aware Explorator is a wholly owned subsidiary company of XTR? We only share alluvial income with Nexus so the whole $20K per month for hard rock mining will belong in its entirety to the XTR 'Group'?

ATB

Hello Yoshie
I hope you are well.
The price we are discussing is just what can potentially be raised from the sale of the Fair Bride deposit
There are several other hard rock deposits that we already know about and XTR will get 20% - 23% of the profit from these plus $20k per month regardless of whatever happens to Fair Bride.
The geology of the concession points towards there being other, as yet unquantified, hard rock deposits and these will now be properly explored for future exploitation.

Then there are the alluvials which, although unpredictable, are likely to supply occasional wind falls over the next few years.

The company is expecting to earn around $6M per year just from the known hard rock processing.

If you add up all of these elements the potential SP is multiples of the 9p we have been discussing.
Painful though it may be for we LTHs a little more patience is likely to offer serious returns on our investments.

ATB.

Can peeps please stop buying this share?

I am expecting to free up some funds next week and would be really grateful to be able to top up at the current price.

Many thanks in advance.

At least we will have something positive to discuss.

Yes, It will go lower and it will go higher. This is AIM.

You stated the obvious, does that make you a genius?

Sorry, that should have read $11c (about 9p) as per my original post.

Still an enormous amount of upside from here and whilst still by no means certain to be fully realised, with a combination of alluvials, hard rock and further exploration all happening at the same time, it does look like a multi bagger in the making.

Hello All,

Please see Daz's post below. As always he is certainly on the ball!

NPV of $42M was based on XTR paying for processing plant which now is mute.
Current NPV with the new deal is a little north of $60M so re-run your calculations using that figure and I am sure we will all agree the SP will be more than $11 based on current value of Fair Bride alone. Then there are the alluvial and other unproven prospects...

As I said before, many have underestimated CB and will join the long list of those owing him an apology.

ATB.
.

I get the feeling that PIs are missing just how good a deal this is that CB has brokered...

That is the backstop price. If you read the RNS the price is NPV - 20% -15% which, at the moment is about 9p per share, or about US 11.5c.

Now that really is worth waiting for...

Looks to be a good deal - particularly if they decide to take up the option to buy Fair Bride for the agreed $20,000,000 within two years.That would mean cash is avaiable for a dividend of up to 4.5p per share.
That would still leave XTR with the alluvial income plus any other significant deposits found as a result of the ongoing exploration - looks like CB may have come up trumps, after all?

It is public knowledge that SOU has been courting buyers for some time and it has been stated that the asset is expected to fetch a price that is good for shareholders.

It would only be insider trading if either of these prove to be false information, in which case, why buy the shares expecting to lose money?

Far more likely Brian has accepted that the 'good' price will not allow him to make much/any cash on his options so he has decided to make up for it by buying at a level where the company has stated a good chance of a decent return. No insider dealing there...

Many thanks, Testpack3.

As only the Eastern Morocco assets are up for sale, it's not a true LE, so a potential purchaser can pay as little as SOU is willing to accept - There is no formal base price...

Just a thought...

I still have a shed full of these warrants. Does anybody know if we will be able to exercise them once an LE offer has been made and accepted?

So, if an offer equivalent to 45p per share is made, can those of us that own warrants exercise them at 24p and make 21p profit?

Not sure if the question has already been answered on here?

The AGM went well, or at least as well as it could do under the circumstances.

The BOD, deservidly, was put under a lot of pressure and they were made to work hard to get their resolutions voted through.

CB and LR are heading out to China tomorrow to discuss Manc with at least two companies. I got the impression they would not get out of bed for £5M, but £10-15M might be a different matter all together. CB said that he would not be going did he not think there was sufficien interest from the companies.

If all goes well with the Buffalo exploration project (that is a big 'if', but not an improbable one as all existing signs are very positive) then best case scanario is that the market cap could be as much as £10-15M by the end of November and the project itself could be monetised in 2020.

Eureka is drill-ready and only needs finance to move it forwards not viable to get that sort of cash via a placing with current SP- so a JV is most likely option, see above for ways of getting the kind of cash needed for our share...

Speaking of cash, being an exploration company with no income, a placing will be needed at some point in the not too distant future (no surprises there, then). The BOD are looking into ways that retail shareholders (that's you and me) can participate. BAG can be congratulated on at least getting them to consider we poor, normally ignored, PIs

I guess what I took away from the meeting is that we do at least have multiple options, any one of which, if successful, would increase the SP to many times the current level.

ATB

So it's the AGM tomorrow morning - Exciting, or what?

I don't know about you guys, but I can hardly contain myself...

Not surprisingly, the market seems to have taken the news well - a steady increase in SP looks set to be the norm, at least for the moment...

Lets hope they are right this time and the , what seems on the face of it to be, very sensible reorganisation also proves to be a turning point for the SP - after all - it couldn't have fallen much further, could it?

Yes, looks like a cluster purchase, reported upon completion of the order...clever!