Member Info for CaveatEmptor

Agreed NtM, it is nice to be able to enjoy the upward trend without any hysterics clouding the bb. Long may it continue...

Hello NtM,

I guess the emphasis is on the word 'possibility' - and I did say 15p was very big ask, but with Sino's record over the last 18 months I am confident of their ability to perform in accordance with the new agreement, and providing they do perform as expected then an SP of 3p is definitely within reach in the short term.

The rest is in the lap of the gods, but Omnia will have invested several millions of dollars in their plant and logistics so they will want to make a return on their investment - and that hard rock gold is very close to the surface so no reason why they should not also contribute significantly to the XTR cash flow in the short term.

So, I guess I am saying that the SP that I expect is 3p at the low end (not a million miles away from your own expectations?) and 15p at the high end - exactly where on that scale it ends up by the end of Q2 will of course rely on the news flow.

ATB

Good morning Chris,

Yes, you are right - I think you may have chosen a very good time to get in here -with luck you will owe your buddy a beer or two!

There are three reasons to be optimistic in the short term, IMO

1) IF Sino can have the two plants up and running by the end of January AND they can guarantee a minimum throughput of 200 tph 24/7 during the worst of the rainy season in line with the latest agreement this would mean an average throughput of 250 tph - 300 tph on an annualised basis. With a 10 year+ life of mine I fully believe that this operation alone would be worth at least 3p to the SP of XTR.

2) There are 8 potential hard rock sites on our licence, including the newly discovered quartz vein/alteration system, named André Zone, which has been channel sampled in trenches and gold grades vary from 1.1m at 0.89g/t (Trench TOM003) to 0.5m at 20.8g/t (Trench TOM002). Omnia have had over 5 months to sort out the mining logistics and I fully expect to get news of production during Q1 this year.

3) Fair Bride - XTR has been carrying out financial and technical exercises to assist them to decide whether to work the various veins sequentially or to install a total capability plant suitable for all ore types. Results of these studies should be available during Q1 and should XTR elect the latter route, then Fair Bride may well be processed through the Omnia plant subject to final agreement with Omnia.

IF we get favorable news on items 2 and 3 over the next few weeks and months then these alone could be worth up to 12p to the SP. Although I do admit this is a very big IF.

So IMHO, if everything goes according to plan, an SP of up to 15p is a possibility by the end of Q2 2019.

Of course things are likely to take longer than anticipated - that is just a fact of life, but I am confident that the Sino II deal will start to add shareholder value in the short term and that at least a proportion of the hard rock potential will be realized in the short to medium term so I fully expect the SP to be many times the current level by the middle of 2019.

There again, it could be argued that I am a bit of an optimist...

Welcome, Chris - let's hope s/he is still a buddy when you eventually sell the shares...

Having said that - there is a more than reasonable chance of making good money here when buying in at the current price level, so I would hope that your relationship is safe.

ATB.

Sorry - for 'Exploritor' read 'XTR' - typing faster than I am thinking...

I think JDAU is saying that there is an additional $175,000 due to Exploritor for the 6 month period due to retained gold production so that changes a $40,000 loss after operating costs into to a $135,000 profit after operating costs.

I am sure he will confirm either way...

Good morning JDAU,

Once again I have to agree with you.

Following release of the RNS I too did a calculation based on an average gold bearing of 0.5g per tonne, 200 tph on a 24/7 basis and a 25% discount to the market POG to allow for local sale of dore bars and this came to a gross annual contribution to XTR of about $2M.

I think that the contractual minimum of at total of 200 tph 24/7 is based on the fact that there will be some down time for each of the processing plants and it is slow going during the rainy season so this has been factored in. The less down time there is the more the minimum target will be exceeded. Once the rainy season is over production could well increase by up to 50%.

If we say operational costs are about $500,000 pa then this leaves $1.5M to cover corporate overheads and carry out more exploration.

This is based on 200tph, which is the contractual minimum, as discussed above, so in reality we could expect the annual profit to be even higher.

But as I also said at the time, this does depend on Sino II performing in line with contractual requirements and only time will tell if that is the case, however they do have more alluvial mining experience on the site than anybody else and for them to both increase the share payable to Exploritor and also pay cash up front for the privilege must mean that they are pretty confident.

We shall see...

Hello Jdau,

I hope you are well.

I completely agree with you.

Lots of near-time news due and the hard rock plays could be game changers - if the contractors live up to expectations! - However that is a big 'if', based on previous performance so only good results reported in Q1 will help to restore short-term confidence here...
ATB.

I doubt Colin would have given them the whole concession unless the recent results have been good, and they would certainly not spend $350,000 on getting the rest of the concession unless they thought they would make a lot of profit.

i am looking forward to the next production update...

Hello BTTS,

I have allowed a 25% discount to the market price.

All the best,

Sorry, should be Au, not Ag...

I know we've been here before, but if we do get 200 tonnes per hour throughput on a 24hr per day basis with 0.5g Ag per tonne that equates to a net income to Exploratore of about $16,000 per day - so $8,000 per day to XTR.

This equates to about $2M per year to XTR - and would mean that all corporate and operational expenses are covered.

At 2% payback for the $200,000 balance of the buy-in, that would take about 4 months to pay off.

This is beginning to look like a viable proposition - IF the 2 plants are up and running by February 1st! Only 2 weeks away, so not long to wait...

From the synopsis on the UKIS, our focus is now on acquisition...

"Xtract Resources PLC is a resource, development and mining company whose focus is and will be to acquire brown field resource projects with a view to release value for its shareholders. The projects targeted will be in regions where mining and infrastructure is prevalent and the mining regulations transparent."

Any ideas where the first new project will be?

Yes, the SP does seem to be ticking up nicely at the moment, long may it continue to do so...

When you think about it an MC of around £12-14M would not be unreasonable, given the proven resources, the strength of the dollar, the POG and the fact that we are already in production with most of the company overhead covered by profits being generated.

I guess that type of MC would get the SP back to the kind of level where many of us bought in, so. whilst we LTHs are unlikely to make massive profits, at least we could end up back in the black?

Not sure about the leak, but the increase in the POG is certainly very welcome - potentially puts Fair Bride back on track to make a handsome profit....

Hello All,

Looking in for the first time in ages to see how things are going and having read back a few posts, I must say that it feels like I have never been away - other than the price now being half what it was the last time I looked.
My guess is that some people are likely to make a great deal of money out of this company at some point in the not too distant future. Unfortunately I am not likely to be one of them as I have been invested here too long for that to happen to me, however, those that have recently bought in may well see a decent return. So I guess that means that I agree with Andrew.

The rainy season must be well under way by now so unless we get some news on the contractual front I expect the price to keep dropping, just from those sellers that are desperate enough to sell at a loss or who are simply too bored to keep going and have lost the will to live.

Not sure that challenging CB will make any difference now as changing horse mid race rarely improves matters in the short term and either something has to happen soon, or there may not be a mid term here to look forward to...

So, on that optimistic note...GLA

here today - Is there news due?

Hello RPO,

How many shares were sold in that trade?

Hello CC

"The secret Barrister" by an undisclosed author - it's a expose of our legal system, warts and all, from an insider's point of view - not everybody's cup of tea, I know, but I find it utterly absorbing.

ATB

Hello James,

Many thanks for your kind comments.

Let's hope you're right!

-This book will not last for ever :-)