Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Cannot rule out a placement, particularly for a further BR exploration phase to increase shallow high grade material that they believe has the potential to significantly impact the economics. There are outlying targets they may want to follow up on stick some recon holes into, particularly the western lobe. Not overly expensive, perhaps a few million that’s needed up front, to have funds in place to cover the contractual obligations of a drill programme.
That outcome will be determined after the next round of optimisation.
So if needs must, they will require plenty ammunition to throw at a new PR drive later, which does benefit all shareholders if dropped in at a higher market cap.
Would be naive to believe that the company don’t need to raise money from the market again.
No the agreement hasn’t changed, costs are defined as production etc my point was mainly toward emphasising that the company needs to attract more serious investors with a longer term outlook, showing proven fully sustainable efficient operation and not just attract 1 day wonders. Fundamentals should be driving the share price but ultimately our investment is driven by good old fashioned supply and demand. If demand isn’t there across the whole resource sector then go figure. Hopefully it’s started turning. Didn’t mean to mislead but sometimes provocation is the best way to ‘spark’ lively debate.
Hi Ben think we all know how fickle this market is, so until a stable efficient operation can be shown directly through xtract’s share of profit it could be looked upon as falling short.
The reality being, that to produce an ounce of gold, they incur not only operating costs, but also spend on sustaining capital at the mine site and capital on exploration, in order to sustain the future supply of ore to the plant.
That is one factor that will keep AISC higher if new oxides can be found to feed existing plant longer and through when the deeper open pittable, higher grade sulphides can then be processed.
Any upgrades or even a new plant to eventually accept those higher grades will no doubt come from an extra injection of capital through whatever deal is structured and with whom.
So clearly, all drilling from grade control at mine face to exploratory to find new ore, is funded from revenue at source before xtracts 23% share of net profit is paid.
At present, it appears that further exploration has not commenced yet, with focus concentrating on supporting its partner in bringing costs down so exploratory drilling can then resume toward being a ‘fully’ sustainable mining operation.
Imo, that, will be when serious investors will be attracted and they should be shouting from the rooftop.
>CEO’s go to radio silence when they don’t need your money anymore
Make it sound like a negative! That’s really not a bad thing right?
But in reality, just cannot see where any sustainable share price increase will come from through the promotion of Manica at present. Particularly leading up to the festive period on top of the lack of overall sector sentiment. They have clearly gone into care and maintenance until buying returns.
Until then what’s the point of wasting any half decent news to see any rise immediately fall back again, which would happen without a stream of news to sustain and build on?
Was only just up to supposed nameplate capacity by June so should see a further increase again in Q3 showing consistent max throughput throughout that next reported quarter. Did see an increase in head grade in Q2. So with the exception of any of that further anticipated increase from Q3, gains will naturally come at a smaller rate now that will be performance related through general operating and mill efficiency to improving recovery rates further. Naturally an improving gold price will help considerably too.
Surely cyb is not implying xtract are a sinking ship! . If to nit pick, that is not the best analogy considering the strong cash position the company are now in to advance its projects without ‘generally’ having to give any more of it away to do so. At just twice earnings against current market cap too I might add.
Got ‘High hopes’ for my ‘Money’ Ntm, in ‘Time’ the resource sector will be ‘Coming back to life’ soon hopefully then we can ‘Breath’ a sigh of relief. If not then might have ‘One of my turns’ and it’s ’Goodbye cruel world’.
‘Is there anybody out there’
Talents definitely wasted here! 😉
>>>IMHO the question is when will this be confirmed officially
As far back as July 6th in Manica Q1 2023 Gold Production Update it states ……
Xtract will be reporting production and gold price statistics for Fair Bride on a quarterly basis with Xtract's 23% net profit share to be included in its annual and interim financial accounts.
No reason to believe that has changed and so a separate update of net profit share from the second quarter does not appear likely.
So unfortunately in that respect we are looking at full audited report due usually at end of June!
I think what you are saying could well be true, but I don’t believe that would impact on any decisions that will come to potentially and significantly increase revenue.
There will be a certain evolution of the mining operation based on geology and the desire to all make more money by exploiting as much and as fast as viably possible. Ongoing feasibility studies will dictate the growth of the operation and with other parties to consider, xtract will not want to miss out on increasing its profit share I would hope. If funding in part for any modular upgrades or separate plant can be sought then xtract could well expect a share of production over current nett profits.
Take for example Manica. The studies will be ongoing to establish what upgrading is most feasible to accept the sulphides later on.
It should be considered that xtract will certainly be pursuing extending mine life by accepting all ore types. This will then give opportunity to unlock the remaining current ore reserves from the satellite deposits on top of any additional ore identified through further exploration. All cheap easily accessible mining with potential to exploit a greater profit share if xtract can get a debt facility to part fund any upgrade or additional plant, which I would be confident in saying that has got to be a serious consideration.
Importantly toward that, the Manica concept study indicated that ‘much’ of the Manica Project area would be readily amenable to low-cost surface mining techniques, and that it exhibits no particular technical or economic risk issues that could undermine its operational viability.
You can start to appreciate why Colin has already stated that they want to bring down the ‘potential’ LOM of about 100 years from all current ore reserves , estimated from currently limited plant capacity. I Would imagine more probability than speculative that would happen
Manica could become a rather valuable asset.
Hi JEZ yes I have been pro Colin normally just to offer an alternative view over the overly biased general negative perception of him or how he runs the company.
When you invest in a Colin Bird company it kind of comes as a package. I invested into BR, but clearly there is still potential there, and across other assets to move forward. Agree nothing said on here is going to have any lasting effect on the share price.
I don’t tend to look at my portfolio it makes grim reading, but those trades I offered are just a few. My broker account does not give a total percentage across 3 accounts of various sized holdings, so could well be a higher average. I tend not to concern myself as it can sometimes cloud judgement. I am happy to accumulate at a low level just on Manica’s potential to expand and increase on xtracts current profit share in time.