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Thanks for putting that up gixxer.

So exactly where will that profitability come from beyond ‘just’ the increase in resource?

The effect of economy of scale that will increase the operating margins. A lot of the cost in processing is labour, which includes people working at the mine face, plant operators, processing plant workers, upper management staff, accountants, site safety and HR personnel, admin and other general workers.

It doesn’t matter wether a development option covers a 15, 20 or 25 mtpa throughput over 5,10 or 25year LOM, you still generally only need the same amount of staff to run the operation. So half of the operating costs are already factored into a new set of development scenarios with the increased tonnage.

This before any benefits from ore sorting and any other pre-concentration have been factored. If proven successful of which is looking to be with the feedback so far, then it will impact both Cap and Op costs from reducing plant size, reducing water and power usage, including haulage fuel if the barren material can be separated prior to hauling to the pad.

Nearly every test case for BOS has seen the technology incorporated into an existing plant whereas the advantages in tailoring a new plant at BR around the technology could have far bigger economic advantages. Would become a super efficient state of the art plant utilising the most advanced mining technologies too.

2mt blah blah blah

Are no doubt was a good solid Q1, echoing what has been said already.

Cannot help but think Q1 RNS being dropped so soon after AGM call could mean there is more operational news updates elsewhere to come in next couple or 3 weeks!

We had one sanctimonious p rick telling us we should invest in ETF’s and now another telling us we should buy into gold!

Funnily enough though , I actually thought we had.

NG what do you make of Footrot?

From Assay summary…

The analysis of they assays at footrot stated both holes “intersected lengthy intervals of alteration and iron sulphide mineralisation along with traces of copper and possible gold indicator minerals. This could suggest proximity to a mineralised porphyry - further modelling of the geophysical results here will be required.

From year report ‘23

Two exploratory holes were completed at Footrot which intersected lengthy intervals of alteration and iron sulphide mineralisation explaining the IP anomaly. Footrot has now been adequately tested and no further work is planned.

Are they saying the extra modelling was carried out and was looked upon negatively perhaps, or that no further work is planned relates to a decision not to do the extra modelling?

Does sound like Footrot has been taken out the sweetie bag which if so , is shame as would add weight to the multi mineralised multi porphyry label.

Seems unusual as is generally accepted that if one in a cluster is mineralised then they all are. But at 7km away………

Dani >>> Why wouldn't AA buy BR when we are below 2mt and POC below $10Kt and sell on when it reaches $15Kt ?

Without a viable mining study it’s far less likely they would move on BR before.

There is the term in the agreement too that gives AA a one time opportunity to make an offer but that is still once 2mt is reached. So any approach beforehand will fall outside of the agreement and not go to third party consultancy valuation and subsequently through the Valmin code. So xtract could command a higher valuation based on their own assessment of worth.

As have said before IMO the project is not going anywhere whilst xtract are continually de risking it for them by providing that up to date economic assessment, and the opportunity to for it to be valued by third party.

Digging a bit deeper into ‘this’ comment from Steve’s notes-

“it seems to me they want to announce this model while we are below 2mt and the copper price is low in order to get a 'no' from Anglo.

Just considering why Xtract would want AA to pass up on their option to buy it back. As per the terms there is a good possibility that ‘AA’ would want the project to go to third party valuation, which would happen if there is too big a gulf in what xtract want and what AA are willing to pay first off , as they could pay far less than if it were on the global market.

If it went to third party consultancy valuation then it would be valued in accordance with the VALMIN code, which as part of the broader Australian regulatory environment, places certain constraints on the valuation process and is very specific on how such values are presented to the market.

Understandably, Xtract would want to present BR in the best light and to want its value aligned to those inflated expectations on copper prices to return the best value to shareholders. Is less likely to happen under the Valmin code.

No, my apologies NG for assuming you meant podcast.

The scope of work around fb pit and to bring satellite mines into play already is encouraging toward seeing a very decent run.

From Steve’s notes it makes sense of Colin’s previous comment that “we are heading towards a pre feasibility study”, possibly then, once they get a decision from Anglo. They either buy it or xtract continue to increase the resource whilst they actively market the project for an interested party to come in at anytime

Does all tie in, particularly so with his “a bit more patience comment again. Changes the landscape somewhat.

No, missed that comment NG was it elsewhere in the roast podcast? Only listened to the xtract segment.

Couple of other points CB made stuck out. Firstly once the full study is complete and if, with a successful influence on the economic model from ore sorting. He implied they may no longer need to increase the size of the resource with the targeted drilling to NE/NW previously mentioned.

Secondly he gave an impression that the full study they are aiming for now with the further test results of the low grade for pre-concentration could be what AA will make a decision on.

Both comments tie in together, and also correlate with Steve’s notes taken from Colin at AGM’22 …..

>>>The intention seems to be to get the AA decision out of the way early. Colin expects copper price to reach 15,000, so (reading between the lines) it seems to me they want to announce this model while we are below 2mt and the copper price is low in order to get a 'no' from Anglo.

Phase 3 will follow the above (which is interesting as they assume there will be a phase 3) and will cover more definition on RC higher grade area to improve the IRR, further drilling at Ascot and NW of RC, which they now seem to think is actually open again. This will happen sequentially, not all at once.

Start talking to various majors who are more likely interested because they already have a presence in the area (Newcrest?). Again reading between the lines, it sounds like informal contacts may have already happened. Colin made it clear that when a deal happens, it can happen quickly.

With 92 likely all negative posts LW wouldnt that make you a prolific deramper?

Was Peter Hall a private investor or a fund? Believe he was TR1 but after rebalancing dropped below threshold. Was a regular poster (1plus1) but stopped posting on here although active elsewhere.

Previously done Kalengwa and eureka to death lw stop dwelling on the past and try concentrating on the way forward.

T1 is a just a general term ffs has different connotation’s in what makes it considered a T1

So you have based your disappointment partly on a throw away comment from the ceo which is to be fair what they are still planning to do if I’m not corrected.

My support is based on my own research and understanding of the projects and what the company are required to do to achieve the goals that are set. I am happy to have accumulated and still am.

If my investment fails I will not be blaming anyone but myself unlike some!

The plant upgrades will need to be in place sooner I would have thought to coincide with the in pit oxides being depleted and smooth transition to mine the transitional ore thereafter.

This from the DFS states , “the ‘defined’ oxide material will be depleted within two years and fresh material will gradually be introduced until year four, thereafter only fresh material will be processed. 


Fresh material would include oxides found from further exploratory work.

So appears we are going to build the plant at about £/$5m ‘borrowed’. To answer the question earlier! Fantastic news if confirmed.

£450kpm £6mpa mentioned once again.

Kakuyu is as I thought, not jumping straight in and taking the diligent approach.

As confident as ever ore sorting will have significant economic advantages. Even bold enough to imply an IRR of 25% which is desirable and competitive.

I do hope the doubters can achieve their target price to bail out early. It’s getting f****** tedious now listening to you all trash your investments.

>>>The FB income won't be seen as great news when you compare it to our current expenses or 3 Million a year.

Operating costs across year 21 and 22 included £1.47m in ‘21 and £0.25m in ‘22, for those share options granted to employees and consultants. Also included were the costs impaired for Kalengwa @ £.32m in ‘21 and £.98m from eureka in ‘22.

‘23 should see a healthier balance sheet

Could it be that Empress stump up and take a little more from MMP. Ms sherron confirmed recently a debt facility they have toward any developments of their royalty streams?

Do we know how the JV is structured for plant mods at fb?

Meant as a light hearted comment and not provocative btw

Can they not do both Andrew? After all the core business is split between being a gold producer and an exploration company. Should they stop the silliness and only concentrate on one or the other? Developing current assets whilst pursuing others is a normal approach for any explorer, and at the core of their key strategy for growing the business.

Hope Q uint is not a swear word