RE: What direction2 May 2019 11:45
In fact, Colin has agreed that I can summarise recent conversations that we have had over the last day or two:
In the past we used to allow the contractor (Sino II) to pass on low yielding gravels. In reality this allowed them to cherry pick the concession. This meant that we had the low grade areas left unworked so, in theory, we could return to them later but of course it would probably be uneconomical so we would be unlikely ever to work them.
XTR is now of the mind that we insist on low grade working - in other words the contractor is obliged to process all alluvials, regardless of grade.
We have achieved very good refining terms and this has directly translated into better income This combined with a 50 percent split improves the company's overall financial terms.
The bad rains have not directly affected our operation, but they do have a big influence on internal logistics for Moz so the country infrastructure is under heavy pressure at the moment. This inevitably has knock-on effects in many administrative and logistical areas that has ultimately had an effect on our production.
Daily performance has proven difficult to stabilise as, typically, we have recently had several low-run days counter balanced by a few days of feast.
What we need is more feast than famine, but this cannot be ensured due to the unpredictable nature of the grades in alluvials - we could be due to have a whole month of feast, or a period of famine, there is no way of telling for sure either way.
Any result over 20 kg per month is good and makes Xtract overall profitable.
The hard rock is progressing as I originally discussed with Colin at the Investor Show. We are now well down the track with one preferred investor. The recent RNS said we would have a result by end of this quarter and that forecast is well on track.
We have done some more work and archive data capture in Zambia with positive results. Matrix is at an early stage but indications are promising.
Eureka has loads of potential and is drill ready.
The above is a summary of where Xtract stands, as of today, so you all now know as much as I do.
As always we need some favourable winds but Colin and the BOD firmly believe that we a lot better off than most AIM junior resource companies.
Now, remind me, what is our current market cap?
Not rocket science to see what will happen here over the next month or two.
ATB
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