Member Info for howezap

Dani 5% is not processing but lost copper through metallurgical process. Can assume processing costs will be 50% of revenue, with refinery charging a big chunk on top when purchasing the virgin rock.

All in costs of $2.63/lb includes Ovals mining costs thrown in on top for simplicity. But was plucked from an example when fuel costs were far higher last year though.

🤦‍♀️ Means the mining rate they will be targeting, between 5-7 thousand tonnes of virgin rock per month. (From March presentation)

Haulage costs $100k per month based on $500usd per 30 ton truck load ( wild guess for a Zambian haulier ) 🤷

Ore @3.5% cu. Account for 5% processing recovery losses

AISC maybe $2.60usd/lb

30%tax

60% net profit to xtr

No idea at what premium the refinery will want for their services.

If anyone can add, dispute or other? Please do

5-7ktpm @ 3.5%Cu

Dani>>Now Zambia Copper is coming into play I need to study so I can project earnings which will then add to forward value of share NOT YET PRICED IN.

Did you get as far as working out xtr anticipated 60% share of net profit from Kakuyu once running ore off site.

Consider haulage costs and assume 5-7ktpm

His last article on xtract before this one has been the only exception from all the previous that have shown him to be anything but a master investor, with previous articles having mistakes and misinformation in them. He like many, had been drawn in by the early hype, without fully understanding the various assets.

Master investor my @rse

(no offence y’all )

He is not taken seriously to worry about this article being out there, you need to at least show an air of professional impartiality for your views to be taken seriously for that. He made it known he invested in xtract so can imagine is the same for his other investments that he commentates on.

>>I think zap was saying no point in optimising BR if it won't be sold for a year or so. 


Just saying, is there a point in fully optimising ‘before’ approaching AA to negotiate a get out if either of the AA options are not going to be met?

They could do a potential phase 3 or optimisation phase after a conclusion if needed.

Just putting out the idea, I personally haven’t got a clue.

It’s down to how much we will have to give away. Will just an increased NSR royalty cut it? Getting out of the legally binding agreement is paramount before anything can happen.

But once they do then are free to actively market

The way I see the AA option now is, once they have the numbers that give a financial picture, along with the geological data is there any reason to wait to cut a sell on deal with AA if they are not going to persue the DtM if is going to be difficult to prove. The 2mt is out of reach if they will need to spend another £10m or so to get there. Is one or the other to trigger the process, so if neither, then is there any sense in fully optimising and waiting a further year or so?

You have a spot on imagination! I do actually have a F150 truck!

BR may have some optimising ahead before it is ready so will make a change for focus to be spread around the other projects towards increasing cash flow.

Yes agree ‘beaten track’ as far away from other people as possible.

Some Ferraris and a helicopter jez

no daydream I am going to win Euromillions because I keep telling myself that I will.

Two tickets = twice the chance

I use me 🍞I do

Just picturing what a stockpile 3ft high looks like 🤣

Sorry should read 3kt.

Also 60% increases to 70% net profit from any additional mineral resources discovered during the course of Xtract's exploration programme. Which would include the additional 1.4km strike.

They may bring in a company to provide process plant so any ongoing increased net profit share could be impacted although it will mitigate the risks involved.

Ok so looking into the Kakuyu JV gives idea of cost

pay US$65,000 to Oval being the amount calculated by the parties required for the mining start-up costs for the first month of mining and delivery of 2,000 tonnes of copper ore at an average grade of between 3.5 and 4.0% Cu. Thereafter, all project-related costs will be met from cash flow;

- reimburse US$90,000 to Oval in respect of stripping and mining to date on the Kakuyu Project, to be settled from cash flow by the reduction of Xtract's percentage share of net profit from 60% to 20% for the period required to reimburse Oval;

They have already payed back Oval conditional costs, both US$65k and US$90k Confirmed in March presentation. It implies up front and to be refunded to xtract from cash flow So if there has been any initial would have been returned and or gone toward further test work to extend strike, if they want to develop a sustainable operation. That, will need that ‘further’ expensive pushback to expose the copper ore/cobalt so need to understand first, the ore distribution to help with plant design and if an actual mine plan for it is warranted.

Goes on to say they will focus on generating cash flow ‘once’ that operation has exposed additional ore through that expensive push back programme.

So not sending ore presently as I’m sure it would have said , focus on increasing cash flow.

In pit geological estimate of 750kt @>3.5%cu

Stockpile on pad

3ft @>3.5%cu

Not includes any of the newly discovered 2.4km anomaly.

If is any more help Dani

Dani

Still unclear from piecing together various quotes and from updates of how much if anymore than the 250t bulk sample sent for compatibility. He just mentioned some initial production.

Would have been taken from stockpile that Oval had sorted, which targeted the higher grades sulphides of 3.5 4%cu which I believe was quoted at some point as being the likely average across the deposit, (no historical assay data available) which also answers one of your previous questions about average grade.

The ultra high grades of 15 and 25%cu in pit were commented on by M Churchouse when the roasties went along for a site visit as part of the Zambia special podcast they did. He also quoted from average of 3-3.5%cu so possibly since then they had raised that forecast a little. ??

Might be an appropriate time for a listen if any had not caught it in Feb

https://audioboom.com/posts/8242109-the-sunday-roast-zambia-special-glr-jlp-cgnr-afp-est-vast-prd

Yeah, fair one on me being a hypocrite Andrew.

With your many followers though, it could just mean that there are many more that maybe don’t quite fully understand what they have bought into, or are onboard with the growth strategy of the company of which i might add is clear as night and day, written n black and white in various news releases as well as on the main company website header page. So if the company didn’t per-sue further opportunities or the next big thing, then shareholders would then have something to complain about or criticise surely. That is the crux of why I feel the need to challenge others opinions on this particular matter anyway.

I hope you would agree that without any challenges to provide rhyme or reason behind others opinions expressed and we all just had our say without that interaction makes for a very dull discussion board. ( in general that is )

Sorry to waffle on folk

Up the Bushrangers!

Fairbride development ‘is’ their primary focus and priority. He told us that. But agree on it is prob not enough for him which is why I prefer to look at the bigger picture of the potential of the company now.

I only press you as can guarantee a good debate Andrew.

I wasn’t suggesting you wanted to sell out ‘now’ just in general as you don’t appear to be onside with the ‘growth strategy’ of the exploration/ production mining company we are all invested in.

And then comes the personal attack before you throw your rattle out your pram again, rather than challenge any of my own views in a constructive debate.

With respect though

Dani>>I wonder if dear C🎯l will use empress to part fund XTR capex share in exchange for a royalty?

Alexandra sherron has previously confirmed Empress have a debt facility in place to further advance projects in their stable if needed.

Andrew>> Then again, if I was nearly 80 and knew I only had another few years left in this game to hit the big one, then I'd probably do what CB has just done. 


You seem to be focused on CB wanting to hit the next jackpot out of desperation to leave a last big sale on his legacy Andrew.

That’s a very narrow minded view imho. What is wrong with bowing out eventually leaving a company that could theoretically expand exponentially under its growth strategy and management structure to a company with a worth of far in excess of where it currently sits and in a financially strong position. As he did with Jubilee!

Could well see xtract as a mid cap in 5-10 years with some successes,but only if these projects can be snapped up now while these license holders and project owners are not in a strong financial position to advance them without huge dilution at present and cannot afford to wait it out for 18 months or so. That is where xtract come in if can acquire now before there is more limited choice and value.

You know the ratios of success and failure are the same across all exploration projects and not just Colin bird companies right?

Just wondering if you are not serious about the longevity and growth of the company anymore and are just wanting out now?

Hi Andrew, are you suggesting because they are likely not to be spending their own money on developing plant extensions at FB?

I know CB suggested that after 18 months or so of steady income they will be in a strong position for credit to pay for mods or new plant at FB but that would be any company in any industry preferred model to advance a project surely? I’m certainly not no financial expert but even I know you wouldn’t through choice use your own money when it would be better used elsewhere if credit was available?

They are already in collaboration with Oval mining who are the mining contractors at Kakuyu. So will have a good rapport already with Oval who are the license holders of the larger tenement of the two.

Assumption would be that Oval would be the mining contractor at these two new ones in NW Zambia.

Early signs already, how the now primary asset in Manica is paving the way for acquiring other assets, as well as developing the current portfolio to start bringing in or toward increasing that cash flow.

It’s easy to be cynical, but as NtM has pointed out. Xtract are an exploration mining company first and foremost so exactly what should be expected.

I propose us shareholders should be given the job of choosing a deposit name! If of course they find a mineralised body there.

Thanks for the early heads up wilthew.

>>Xtract anticipates funding this exploration expenditure from existing resources and current ongoing operational activities.

It’s got to be worth a punt, although it does fall outside some of the parameters set in the growth strategy for the company but could well be

worth it.

The longer it’s left before partnering up or taking over these projects the harder it will become to negotiate a stronger position as copper prices start to surge by ‘24 into ‘25.

If not in it now you can’t win it later!

Sounds ok to me

All I can say with any certainty is that Xtract just need to show a level of ‘geological’ confidence with a financial model that works, for an aquirer to be interested in taking it further. CB has stated this numerous times and makes sense at conceptual study level.

The best geos in the world still can’t predict accurately a drills outcome in a deposit where the mineralised trends are constantly changing to accurately predict due to them thickening and thinning in grade such as is at BR. The skill is in the targeting and resource building. Drilling can be hit and miss.

Cannot see Xtract affording millions more to increase the level of geological confidence toward a PFS which I think is where they would primarily spend it, if was the case.

Many moons ago CB stated that a PFS is not a prerequisite for a sale. It has been a constant battle trying to second guess what the company are trying to achieve from the limited information put out. Maybe those clues were already there and a PFS was never going to afforded, which is now apparent.

Just need to optimise to the best possible outcome after, they navigate past the AA option I think is the plan.