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The conflict of interest would be on Xtracts part as they could potentially benefit financially from interference from any other interested party offer, outside the terms of the buy back agreement that is between xtract and AA

Knowing wether there are other interested parties is one thing, but is very unlikely any of those other parties could be in a position to place any value on BR without seeing all of the data. That will simply not happen, AA have first refusal so would want to have sole access to all data before any other interest parties get access to it as it would cause a type of conflict of interest.

The agreement gives AA first right of refusal to buy back, not a right to. The comment from Colin bird previously that, “they don’t have to accept that 3rd party valuation.” could mean that the 3rd party valuation will not necessarily be the final sale price but will provide common ground to bring negotiations within a range.

Generally I think the agreement is fairly watertight and prevents Xtract from simply turning down any offers made for the sake of hoping another buyer wants it for more. Further previous comments from CB in an early podcast would support that, “the agreement is legally binding and the only way xtract can be free from it is if AA have the decency to release us from it.” ( possibly not exact words but very much along those lines. )

Certainly agree with stevem on the 20% and other tenements.
It’s safe to say that if AA want it, then Xtract will sell it.

Agree Andrew >>>I guess the balance is time v cost v profit and maybe CB thinks we are now at the "sweet spot" re those three factors?

Hi Cygnus, it is very easy to agree with what you are saying in principle. But there is a bigger picture to consider beyond bushranger. There is a large degree of supporting evidence that will propel the value of the asset beyond simply the in ground resource value. That is how I understand it, with consideration to the statement in the audited report regarding the project being high up the value curve now. It would generally mean that any further ‘risky’ exploration phases would not necessarily increase further value up that value curve based on the cost of exploration, there will also be all the contractual obligations that would go with it. Geologists, project managers drilling crews and support staff etc. It’s not just a case of carry on drilling a few/lot more holes while we wait for something that, we have no idea on what may or may not happen. There is also the time it would take, when there will be great opportunities now, in these difficult times, to pick up some prime JV’s that fall into the criteria set out by the company as they look for growth on their production side. There will be so many more now of these small deposit owners that will find it much harder to raise funds to get their projects to final production that xtract are counting on.

The company has had a big leg up with Manica coming online, it is imperative the company can now sustain that growth going forward. The proceeds of a sale now will have greater implications in the mid to long term growth.

I, as a newbie ( post BR acquisition ) can understand this, im sure the long term holders can appreciate the need for sustained growth.

Hi ART the buy back is summarised at the end of the bushranger presentation
https://xtractresources.com/wp-content/uploads/Bushranger-Summary-Presentation_April-2020.pdf

It is generally accepted and has been suggested by Colin bird that any major will want to buy all 100% interest in the project. The 80/20% split is to give optionality to both parties.
However it is only the first 80% of the project that may be subject to third party valuation under the valmin code if both parties cannot agree on value. The remaining 20% will just be subject to negotiations between Xtr and AA, where Xtr could potentially command a higher premium.

As it is not a company buy out (xtr) shareholders will retain all their shares after a sale.
The subsidiary (Prospect Ore) that hold the license’s will be taken over where a dividend payment or a part divi and part new shares issued from the acquiring company will be transferred directly into your share trading accounts where your xtract shares are held. If you have multiple accounts, then you will receive contributions to each acc held as per shares held of course.
You will not be subject to capital gains tax outside of SiPPs or ISA until shares are sold and / or funds are transferred into your linked bank account.

A timeline is a good question, sooner rather than later perhaps, based on the potential reasoning behind the podcast. But could well be getting the wrong idea. Oct/nov was mentioned.

The one thing I would go as far to suggest is, that as AA have first right of refusal, it may well be that the market and particularly any other interested parties, will not be shown any of the modelling or conceptual study until after AA have been formally approached and a decision of their intent is made.

I don’t know, but it sounds the likely scenario to me ???

>>>correct me if I’m wrong,
Not at all, really good synopsis zero matrix.

It would have put them in a stronger position around the negotiating table to have hit the 2mt and to have declared the decision to mine together, which is a Oz term ( iceberg first noted) but as long as one of the criteria is met, that it what matters.

Certainly worth pointing out that Xtract have ‘no’ inclination or intention to mine the project themselves whatsoever, either solely or through a joint venture.
Far too big an undertaking in sheer scale and amount of finance required to even take it to feasibility let alone the 1.5 or so billion to take it to production.

What makes this a compelling investment, is the ‘high probability’ that it will be sold, as there is a very good chance Bushranger will go on to be mined, unlike the many projects that get parked up in the hope one day they will become viable.

Is in a mining nation, a friendly jurisdiction with a government that is openly supportive of big mining projects.
Within a fertile porphyry region of NSW nearby to Cadia ridgeway.
Multi mineralised, multi porphyry system similar to Cadia.
200km from main port of Sydney.
Close to the big town of Oberon
Nearby a dam with high voltage power line that cuts across the license.
No disputes over land rights in the area.
Not in an environmentally sensitive area that is likely to cause conflict with protective species.
I could easily go on…

https://audioboom.com/posts/8162993-midweek-takeaway-with-colin-bird-executive-chairman-of-xtract-resources-aim-xtr

For Colin to be so revealing of their intent, and on the tonnage, then to say we cant talk about it when we’re number crunching, just give me the impression he was maybe giving fair warning. We know he and also Jeremy Reid have in the past said that getting to the 2mt, or a position to declare the decision to mine was an important step for the company, and to get there as quickly as possible. At the AGM it was said by Colin that, “a sale can happen very quickly.” He also mentioned price of copper still being, not a bad price now. Worth bearing all in mind as it was generally a podcast he didn’t necessarily need to do.

There does seem to be a decisive plan and a bit more haste to get there now.
Haste being an apparent change of earlier plan to increase the early recovery phase. It must show there is already an economically viable starter project that will satisfy a major to take it further.

One further thing I took from the podcast is now that they are doing the resource statement, it would imply they will not be doing the extra shallow high grade drills to extend the early recovery phase 4-6 up to 8years as they would surely want to wait to include any extra tonnage in the resource statement toward the conceptual study.

I know this would count toward the third phase, but also a previous podcast CB said they would end up with the shallow high grade programme that seemed sensible to bolster the early recovery phase anyway, done wether or not any other drilling was undertaken in a third phase.

Think he would have mentioned wether or not this would be done if was still an option.

Andrew>>>So maybe CB is right in saying that RC is much bigger than we ever thought but not yet confirmed?

Totally agree as assays from some ‘Racecourse’ holes shown deep intersections that hit potential deeper porphyry/s under the main ore body. This is a huge plus for the economics as eventually the deeper system/s would be accessed after the open pit is depleted with only minimal cost and ongoing OpEx as all infrastructure and plant would have already been paid for. This would extend Racecourse life of mine by decades!

They would have a very good idea on deeper anomalies as the EM survey (I believe) that has been done scans down to as deep as 1.5 km

Hi lucky yes I was always hopeful that racecourse was ‘closer’ to 2mt by ‘offering’ examples of where the copper eq tonnages could potentially increase within the resource.
The effect of disposition of lower grade ore outside the high grade part of the resource when the cut off is reduced and what impact the infill drilling could have to increase the current inferred resource once (partially) upgraded.

I have also said on many occasions that the intent is to get to one of the trigger points to see what AA want to do as going forward this needs to be sold for the company to grow.

The most important thing is the eventual sale as I’m sure you will agree and this podcast has made the position clearer going forward, and shows clear intent now to take racecourse to a conceptual study for the decision to mine. The 2mt now becomes irrelevant other than overall value.

The other point that was questionable is that it does appear a buyer will acquire all of the licences together.

Good reasoning Andrew I would agree.

A reiteration overall ;-) but with some Interesting comments,

“Racecourse is much bigger than we ever expected it to be”
?

“Decided not to go chasing those huge targets”
Really want to see them survey results!

Confirms some of the resource will be indicated as has been discussed here.

Biggest revelation is there doesn’t seem to be any likelihood of a third phase.

Commented once again about an October November turn, he sounds hopeful or even set on things happening with AA before end of Q4

I remember Colin doing a seemingly pointless interview way back in feb that was just to reiterate the targets that were set! Actually, in hindsight that really was a pointless interview lol, but showed his good intentions in consideration of shareholders at the time at least.

Throw the dog a bone please Colin ;-)

Sections taken from article
>>> Goldman Sachs forecasts that the benchmark London Metal Exchange price will almost double to an annual average of $15,000 a ton in 2025. A recession will only mean a “delay” for demand, and it won’t “significantly dent” the consumption projections going into 2040. That’s because so much of future demand is being “legislated in,” through governments’ focus on green goals, which makes copper less dependent on the broader global economy than it used to be. <<<

Where there’s legislation, there will be big money to be made.

Kwadoku >>>you have to ride the waves of CB ramps and ignore the fundamentals, because the latter is always sketchy on CB companies.<<<

>>>you wonder what a Scooby Doo reveal on some of the identity of these posters would look like. I certainly have my suspicions.<<<

Holy moly Kwadoku/pops is that ‘really’ your advice? Ignore the fundamentals!! No wonder…..

Now your angle is toward the agenda of some of these posters that defend CB. The regular bunch of informed members that post, do so to defend the fundamentals of the company firstly, from our own research based knowledge and understanding gained from the various news released and audited report etc. No conspiracy, just the facts with a little bit of guesswork interpreted from them on what the company are trying to do.

ART->>> Anything can be said in a podcast, or rather Mr Bird can say whatever he wants and he knows that he can get away with not keeping to it………..
Unfortunately, and I wish it were otherwise, Mr Bird is making himself look a bit of a OLD FOOL these days.<<<

So whose the fool ART?
Colin for using whatever means at his disposal. Or you for taking what’s said in a podcast, literally.

I can’t help myself from responding to moronic comments like this. Colin bird has delivered where it ultimately matters, on turning Xtract cash positive from gold production with sustainable, significant income for many many years to come.

The proof of the pudding and all that…., but once Bushranger is sold on, and I have little doubt that it will be, Manica will be the primary asset.

The resource is going to be increased in the new year with plant modifications that will take all types of mineralisation, there will also be further drilling programs. The mods are being built on an already significant knowledge base of the local geology and the resulting drilling will increase resource estimations that will secure many more years of being an exploration company supported by small scale mining.

The increased understanding of the Manica geology is a key asset to Xtract, as this knowledge will be put to use in the continued exploration across the Manica concessions.

To be in the position it is now, debt free and able to self fund it’s ongoing exploration is a huge achievement in itself, as I’m sure the way the company is structured, it will have the potential to grow into a mid cap with its solid growth strategy in place.

Colin Bird is no fool!

I think if an investor has the patience to see through the long process that is resource building, then that is half the battle. The other half is actually doing their research, trusting in it and knowing exactly what they are buying into and understanding what the company needs to do whilst keeping their own expectations to a minimum.

This dog has got huge pawfyrys
Woof

Thanks Butlerman, a review of Q2 results if released would be favourite then. There could still be plenty to discuss without an RNS, operational update after the recent quiet period across assets or news on further growth opportunities which is expected in Q3.

But let’s just hope this will be the start of a strategy that will see regular news released that the market will not be able to ignore.
The fundamentals from both exploration and production will eventually be out there finally to be able to underpin a fair value and not be so speculative.

Has it been confirmed it will actually be xtract featured? He did a midweek with kev and Phil on the 13th last Tuesday with Kendrick and African pioneer.