Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I fully agree with the decision to sell Manica. Even with the reasons given regarding, the various risks and being a minority partner aside, xtr are not in a financially viable strong enough position to buy into the next mining phase with the current level of market capitalisation and the dilutive effect that raising at these levels will have on the ongoing share price for current shareholders.
A small correction for your post News, re XTR Zambia
The licences in the western forelands were not subject to Glencore initiating an internal MRE from drilling, that was at the latest Silverking project acquisition.
The previously acquired 2 licences in the western forelands however, have seen
Exploration initiated, with the recent acquisition of a major historic database created by Anglo American plc which has enabled a cost-effective and fast-track programme estimated to save as much as US$1.5m in early exploration costs.
Silverking is in the same localised region as Kakuyu so there are now 4 highly prospective licences which includes both in the western forelands nr KoBold and other Tier one miners.
Could be another to follow that was mentioned at GM that captainbob relayed. Watch this space.
Lucky, Glencore were targetting for tier 1 projects, and so the orientation of, and drill target spread were not optimal to what would have been seen for identifying a snaller resource. Glencore had just drilled each of their targets with 1 hole.
The drill data spacing for the mineralisation style does not need to be as close or anywhere near as deep as seem at BR where mineralisation spread was very unpredictable due to porphyry typical dissemination or spatter of mineralisation.
Outlining an inferred resource on Zambian licences will be far simpler and cheaper in a nutshell as Breccia, Skarns etc are easier to predict.
Likely the staged equal payments will just start as roll on in quarterly payments with immediate effect as the deal is done for disposal.
To answer Gordonb
“When does the 15mil payments begin to roll in?”
Xtract Parties are to be paid a further US$3.325 million in cash to settle all monies due under the Mining Collaboration Agreement from MMP to Xtract of which US$2 million has already been paid.
The $15m will be paid in cash in regular staged payments by the Buyers over the period to 1 March 2027
As for Linconlite you need to do your own research to understand that you have described the business model of just about every junior in the exploration mining sector.
So with significant income from staged payments up to 2027 and at the least $2m cash in bank you cannot put xtr in that same basket.
Xtr can scope these projects and advance them along from treasury funds. Major exploratory work will potentially warrant a fund raise, but it will be off the back of a major discovery. That’s how I perceive the current situation. If xtr would have kept Manica then a definate raise would have been needed even prior to buying into the second mining phase. And probably then some…It would have severely hampered the Zambian efforts to delineate any resources from reduced availability of any guaranteed revenue funds
Unless you were told the above who don't no it to be the case. Unless they are CB's words! 🤔
Or billy I actually bother to read and note these important points from what is already in the public domain through RNS
If this latest acquisition is the final piece in the portfolio jigsaw for ‘24 following the disposal of the Moz gold mine and importantly confirmation of the amount Xtr will be receiving up to 2027 with the staged buy out payments, circa $15m over that time.
Xtr can now fully plan to allocate expenditure toward its projects to advance them further through its own treasury funds.
BR could see a final drill campaign to add resource to the Nw at Racecourse by continuing to follow the high-grade plunging zone of the mineralisation and hopefully
test the IP Chargeability/Resistivity anomaly 500m west of Ascot. Could be dependent on outcome of optimisation toward a desirable IRR and NPV. If xtr can push the project further up the value curve without big expense then that is what they will do.
Kakuyu could see a mining operation start to bring in some funds to contribute toward a larger exploration programme as unlike the other Zambian licences the deposit type and mineralisation mechanisms are not clear enough from initial work that’s been done at Kakuyu, so the plan is to to understand further the type of deposit and mineralisation potential there as it has the potential to be far larger than first thought which can justify its own process plant.
Other recent Zambian licences are about to have drilling commence after the rainy season ends anytime now.
Tons of exciting news due to drive MC up and onward as well as raise the profile to the market as xtr can get the jump on other companies with projects lying static due to unavailability of funding to progress them.
Hey NtM I would argue all day that current share prices across all of, not only bird companies, but the whole resource sector in the midst of a global economic 5hitstorm have no relevance to true values of project portfolios that companies hold, there is a clear disconnect apparent now and has been proven historically in the midst of previous downturns to be the norm. So as for a benchmark I would counter by saying it does not speak for itself.
Historically though, through downturns, copper inventories have always built up, but the difference this time round is that with overwhelming supply headwinds that is not going to happen and so the expected demands will very soon far outweigh supply pushing copper to unprecedented highs. There is a far bigger picture in play to be excited about. This is why the company is positioning itself now to benefit later.
18months or $500k whatever comes first if to fast track Art. Agree it’s not particularly exciting but is a good project with a good buy in deal.
On completion of the earn in period, or as such other time as Xtract has spent US$500,000, Xtract may then advise Cooperlemon of its intention to increase its interest in the Licence to 70% by agreeing to spend a further US$1,000,000
No…. Why would xtr need to raise funds was my question.
Art have you even bothered to read the leading paragraph on the company website to just have the most primitive understanding of what it is an investor is buying into and more importantly why the company has this strategy?
No it’s not going to happen overnight
Is highly prospective, that is clear enough from Glencores involvement that it was confident enough to put work into silverking. Their involvement appears then, to have been targeting a tier 1 deposit. The JV’s ideal ‘target’ is toward a far less significant in relative terms, but however very significant in outlining a resource of 500mt in line with the strategy.
Plenty of good indicators from the induced polarisation, particularly indicating the potential of a bulk tonnage halo around the high grade breccia zone. This could prove to be really significant too in the viability of any resource found. The bulk tonnages are crucial to extend any mines life beyond the initial kickstart of the high grade zone.
Early days but a lot of the groundwork of discovery has already been done and with an initial buy in budget of $500k over 18 months it’s not going to put strain on the treasury.
I can see initial buy in being fast tracked with the second phase earn in of a further $1m for 70% also manageable without dilution via funds needing to be raised.
Timescales are long set, which will give xtr time to work around budgetary requirements across other projects to avoid fund raising to advance Silverking.
Does fit perfectly with the type of project the company are seeking under its growth strategy.
Don’t subscribe to FT, could only read the header. This from a different source appears relevant to that.
>>>China's official manufacturing purchasing managers' index (PMI) surged to 50.8 in March returning to expansion range in March after running below 50 for five consecutive months, the National Bureau of Statistics (NBS) said on Sunday, as manufacturing activity increased with the fast resumption of work and production following the Spring Festival holidays.
The figure, although partly driven by the seasonal factor, showed that the economic recovery has further consolidated, highlighting the resilience of the Chinese economy, experts said, and they are more confident about GDP growth in the first quarter.
>>>That argument works well for LTH but there will be a wave of newbies who are beguiled by CB's sales pitch - and to be fair to CB he is a very good orator
Those ‘newbies’ could well be of a higher calibre that are already invested in any one of the majors that surround the Xtr licenses in the western foreland, that could see xtr as a decent side bet if things look to be going well.
The fact that other small caps with the exception of the CB group of co’s are conspicuous in their absence in that region, highlighted in the latest presentation, will be a big plus in drawing in new investors toward xtr in that the prospectivity is certainly going to be more understood, due to the likes of Anglo, Rio Tinto, Ivanhoe, FQM and kobold uniquely surrounding xtr.
As money returns to the resource sector CB shouldn’t have to go overboard, just keep it professional to attract investors, not put them off. It is these that will help sustain any share price rise.
Fair point Andrew, my only reservation is that a sceptical market will be nuturaly cautious in getting swept along this time round, the more CB shouts, the less the market will maybe want to believe the story. And… he will not have a glut of ‘lock down’ newbie traders this time to bedazzle 🤩 and separate them from their savings.
Apologies to anyone that relates to, no offence.
All I’m saying is sustainable companies will generally, as an example, just release an outcome of an exploration programme or from a batch of holes. Ones that need market funding will release an RNS at the beginning of a drill hole, one during and one on completion of the hole.
Disclosure costs money to RNS
There’s a difference between keeping the market abreast of what’s going on in a timely professional manner, than ramming it down their throats.