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I would hope you can recognise Andrew that my, as you say, “rather optimistic view” is backed up with some logical reasoning behind it that I have offered over the weekend and prior.

We all know that the fundamentals alone will not just simply increase company worth, it is purely news driven with supply and demand of shares that drives up the market cap. If there are no new investors around willing to buy at present that is not going to happen and see any rise sustained.

A polite reminder to all that at the time when BR is ready to approach AA , is likely the resources will have increased to over 1 billion tonnes with potential of circa 1.6MT CuEq after optimisation drilling whilst not including any potential resulting effects of pre-concentration or other resource optimisation.

Good to have opposing views of the LTH’s and us newbies that have only been here two years lol I’m sure we will meet in the middle somewhere when we are grey and old.

Even to the desperate point of calling JLP his success...! !!. It seems to have done a lot better since they sacked him !

CB helped built JLP up to a 400m MC when he ‘resigned’ as he felt his skills were better suited to concentrate on companies in those earlier stages of their development.

Xtract has no debt or interlinked share structure

I would argue your reasoning Andrew in that it would also be the case that there are no exiting developments at Kakuyu either or any other developments. They could offer an update on feasibility study for plant extension at fairbride or hints of any further acquisitions they are looking into. The radio silence is apparent now at corporate level and not just the pre-concentration study that can be used to sing from the rooftops later when market conditions improve.

It’s hard to stomach that all assets have fallen short of early expectations which may well turn out to be the case, but, until we get those updates I hope to remain positive of the back of all those early expectations.

"i feel its nothing to do with pre selection of ore or any other side show but purely the price of copper."

Not in agreement!

Resource optimisation is not so important at scoping or conceptual study level granted, but becomes increasingly more so in showing a good economic development case where NPV/IRR at pre feasibility will be more so important.

Not forgetting the social and environmental tolerances of open pit mining is making it increasingly more difficult in obtaining permits. With mining projects that can incorporate these measures to significantly reduce energy and water consumption in line with AA’s and other industry ambitious Sustainable Mining Plan targets of a 30% improvement in energy efficiency and a 50% reduction in fresh water abstraction. These projects will have a big economic and environmental advantage.

To show amenability of BOS particularly will be a massive plus for a major mining company that has increasingly more responsibilities to its own shareholders and to attract new in lowering their own carbon footprints in a modern changing world.

It’s not for an explorer just to decide, let’s see if our ore is amenable for BOS and hope for the best. It was Optimal Mining that identified that the BR copper mineralisation may be well suited to pre-concentration So there is a greater confidence in positive results being returned.

>>I like the analogy that they are both waiting but hopefully we have slightly better fortunes!!

The company are clearly riding out the trough until better market conditions return. Coincident that a late unforeseen change in auditor has delayed end of year results. So regardless of market downturn the company would not be able to release any finacial/operational updates post Q4’22 or certainly ongoing strategy for BR without final results as would be very reliant on cash banked and flow projections to base any immediate plans to progress.

What would be the point of results of pre-concentration study being released now for example, if sellers would then negate any rise in share price rise from any positive news as we have been seeing.

Overall sentiment has to change, and those buyers return that are looking for undervalued market caps to assets held, where xtract will be in the position to get the jump on most other, same sector companies as should show self sustainability now with a good news flow to follow that most of those competing companies ‘don’t’ have any main incomes sources to progress project portfolios and are heavily reliant on share placements.

Or alternatively, one could suggest a further raise may be needed to progress BR, this depends on factors such as other projects that are in the pipeline. So a PR drive will require news flow to hit a target price to reduce dilution to shareholders so would be fruitless to waste any news now.

Too easy to be drawn into no news must be bad news.

>>What word sticks out like a sore thumb?

Imposter!

Note the absence of usual annoying signature 😉

Boing boing

That was a whirlwind couple of days but I switched off to their cheeky charm, ironically at

No one listens to Joey 🦘

Yup

Good luck to you though

Was on the Zambia special the roasties done. Kakuyu in pit of 25% copper with average grades of 3-3.5% which is very decent.

https://youtu.be/qQsePtcXqW8

From 9min 30

Can recall an interview with Martyn Churchouse where he said at Kakuyu he could show you in pit veining of 10’s and 15% copper.

Will try find it later I save most pods.

Not seen any historical data for Kakuyu not sure there is any! Can’t be certain if was artisanal or industrial scale operation. Colin was adamant tho when pressed that it will only make a small contribution at first.

The hope is the further strike extensions potential that will see share to xtract increased to 70% with ultimate plan to develop a plant if viable to maybe also accept out sourced ore.

Lots of ifs and buts and some hearsay but the project had Martyn churchouse drooling over the very high grades evident in pit from a site visit.

185ton bulk sample went to Kabwe and since then an agreement has been made to process.

Can’t offer anything more we don’t know already tbh unless I’m missing something.

Apologies Ma, didn’t read anything into your comment, just banter, I would never intentionally hurt another’s feelings.

You used gord as he played into your hands! and you ask for it to be put to bed ! That is an exercise in futility 😂 but ok consider forgotten

On subject of reducing CapEx it could also benefit all, at valuation where it would be based on NPV model. On a sale like this there would generally be a further discount to the acquirer of the cost to build the mine. Colin quoted is roughly round the 20% mark, so would surmise that discount would reflect lower plant and associated costs.

Ma >>>Thought DTM meant they needed to fund 100% of capex as Colin said NO to JV.

A junior would never be able to get full project funding on this scale.

Worth remembering that the objective is to trigger the buy back, so as long as it shows there is a reasonable business case to be profitable beyond initial CapEx recovery. It may not necessarily have to show ‘wow’ desirability up to that point.

They may only need to achieve an outcome with the minimum necessary outlay and work to trigger and get a yes or no from AA to open the project up to the global market where further work can be tailored to improve desirability.

Sounds like a tinder date that ended badly ! 😬

Soz Ma the mind boggles

Bingo Dani

Xtract would potentially need to show a funding capability of their 20% interest one would assume. The buy back agreement is fairly simplistic and vague though.

If Bulk ore sorting is amenable and can have significant effect on increasing head grade to mill. Whereby lowering plant capacities requiring smaller plant reducing Cap outlay. It would attribute greatly toward lowering reliance on a 3rd party funding partner or reduce amount of getting a debt facility in place. ( not clued up on financing btw )

If any one has a better understanding please offer.

Timeline based on the fact that Colin stated AA would want to see hard numbers and that we will head toward a pre-feasibility study.

More logical reasoning to support what he said is highlighted in the Conceptual study RNS

>>Shareholders should note that the Conceptual Study is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as mineral reserves. The Conceptual Study is based on low-level technical and economic assessments and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Conceptual Study will be realised. 

Further to this, is that at present there is only 50mt of the resource classified as indicated.

Only indicated and measured resources can be converted to mineral reserves that can only be used as inputs to support a PFS that will support funding.

Although CB has said that the funds do not need to be in place for AA, they want to see we are heading toward financing.

It may well be that a scoping study may come next after the awaited conceptual study but I believe the technical and geo inputs are similar.

Needed to be said,

So, at a guess 12-18 months from continuation of next exploration/optimisation phase.

4-6million gbp unless the project is dead in the water ( just for balance)

✋⚡️

Ma

Forget AA for now, $5 or $2.

Do you understand how resources are JORC classified?

This will help understand your ‘not joining up’ comment and infill drilling requirements to gain greater geological confidence required for upgrading resources.

Mega machines, bigger shovels, dual train delivery conveyors, bulk ore sorting, plus many many other plant and mining methods are all type of resource optimisation that will be looked at in more detail as the project matures and not be just the extra drilling to increase the resource. At the moment it is still in relatively early stages as racecourse is still not fully delineated. Maximising the resource is the first and foremost step and optimisation follows on along with infilling to increase the current 50mt that has been upgraded to indicated so far.

Improving on the economics will come from so many different aspects. But, because huge operations that BR has the potential to be, they are heavy front end loaded, although nowhere near as high a start up CapEx as an underground mine. Generally requiring something that will ultimately give them an economic kick start. Boda was considered an underground mine but more recent high grade breccia zone to surface is what will make start up viable with an open pit. Racecourse has the high grade part of the resource that the model is looking to be based on.

The awaited conceptual study is still just a snap shot of where we are at, let’s wait and see what economic assessment it shows and where further improvements will be made as the project advances toward a pre-feasibility study that is required to back up a financing plan that can show AA in accordance with DtM option.

$5/lb will come down with the resource optimisation measures that the preliminary conceptual study recommended.

Concluded it may go down to $4/lb with last round of drilling (phase 2) and tech work.

Would see further reductions with next round of optimisation drilling (phase3) as the economics improve with further increase in resource that optimal have already recommended, alluded to in the interim report.

Ma >> ●fastforward dec 22 and we have jorc 1.1mt copper racecourse 


Whoa! there hold your horses no pun intended. Probably the single most important thing to date has been the conceptual study on the initial 71mt JORC resource. The exercise of which to many, seemed rather pointless at the time but is par for the course in resource building. The preliminary study was necessary to be done to follow up on the original 71mt JORC resource, classified from the work done by Anglo prior to acquisition. A JORC is normally done or updated to understand what to do next geologically. Whereas the ‘preliminary’ study needed to be done simply to follow up on that JORC and show there is the potential for a mining concept and more importantly, what is needed to be done next to improve on those economics with mining consultant guidance and recommendations. I believe all of those recommendations have been successfully reached with phase 2 drilling , and the awaited study will show there is a viable mining ‘concept’ with more critical recommendations on where resource optimisation can be further improved upon and what inputs are required for a pre-feasibility study.

Could argue low cost refers to the general territory of sunshine mining and not necessarily individual project economics. However, those two would have to go hand in hand to be desirable, so you are right James, we can only make wild assumptions at this stage without some numbers to compare with other similar scale projects out there.