Member Info for Jamesiecakes

ART, not sure CB rabbiting on about tariffs, future copper demand or how big SK could be is going to do much for the share price, and judging on past performance I’d imagine it would actually erode the SP…….

I’d love an update across the portfolio, as there must be news coming on SK, western foreland drilling commencing, update on the dumps, Morocco initial exploration etc. However in my opinion it’s better for XTR just to release clear and concise RNS etc

Hi Howezap

Did you mean to write the agreement is NOT binding anymore? I guess not as clearly this would have been announced (RNS) if the AA buyback has been removed etc.

Cheers

James

Lucky

The new Morocco JV has Antimony, so think it’s more to do with this than another JV (but I’ve been wrong before)

Cheers

James

Hi Art

Hard to say for certain as we don’t know what’s been lent to Chilibwe, or what these drilling campaigns include.

Based on the June 2024 confirmed cash balance, known income from Manica, less Dumps, less Morroco, less estimated loan to Chilibwe and estimated corporate OH I feel they have approx £2m in the bank at present (this is likely conservative). Also due another $2.25m over the remainder of the year

Cheers

James

Agree Jakbal, these RNS were both needed! Hopefully some luck on the drilling campaigns now…

Hi Andrew

Nice to see you posting again, below shows the structure of the sulphides from the original RNS which looks pretty structured and clear e.g. in both situations its $3m in the next 12 months

(i) If by 28 February 2025 MMP has not notified Xtract in writing that it has made a decision to build a Sulphide Plant, then Deferred Consideration is payable as follows;

- US$1 million by 7 March 2025;

- US$1 million by 31 August 2025; and

- US$1 million by 31 December 2025.

(ii) If by 28 February 2025 MMP has notified the Seller in writing that it has made a decision to build a Sulphide Plant then Deferred Consideration is payable as follows:

- US$1 million within 14 days of the decision to build Sulphide Plant;

- US$1 million within the earlier of: (a) 14 days of commencement of dry commissioning of the Sulphide Plant; and (b) 1 December 2025; and

- US$1 million within the earlier of: (a) 14 days of the Sulphide Plant achieving commercial production defined as processing 30,000 tonnes in any 30-day period; and (b) 1 February 2026.

From the original disposal RNS, on the surface it appears that XTR were in a strong position if a late payment (I appreciate you want to avoid legal issues, but it makes no sense to me to kick the can down the road and not even get anything for your trouble when you hold the cards).

If there is any breach of these security provisions or the late payment of any of the amounts due to be paid by the Buyers under the MMP Agreements that is not rectified within 14 days, then: (i) all outstanding amounts will become due and payable; (ii) interest will from the date of the breach accrue on all unpaid amounts at the rate of 2% per cent per month compounded monthly on the last day of each calendar month; and (iii) the Buyers irrevocably grant to the Seller (or its nominated representative) an option to acquire the Mining Licence and / or all the issued shares of Explorator for US$1 such option to remain valid until all amounts including accrued interest due under the MMP Agreements have been paid in full.

If I have read the RNS correctly XTR will receive $2m less in 2025, $0.75m less in 2026, $0.25m more in 2027 and $2.5m more in 2028 v's the original payment schedule.......

I shouldn't be shocked by this but I am absolutely am.

Howezap

End of the day all decisions are easy in hindsight, and on the surface $15m of sale proceeds seems ok with the information we have been told. I'm still frustrated that they took a bonus from the transaction as the deal effectively locked in our quarterly payment for several years.

My biggest frustration is that we are well capitalised and have clear visibility on future cash inflows (for example we have $1.75m due next month), however there is no evidence of tangible progress on any of the assets we are involved in. While the only updates received in the last 6-9 months are questionable deals, I’m not saying these are bad deals but as shareholders there is certain information we have not been given e.g. value of the loans (or a max that would be lent for phase 1 drilling etc), equity conversion prices etc to make a reasonably informed opinion.

I do think there is a compelling investment case for XTR based on cashflow and assets v’s market cap however sadly when you factor in lack of communication, progress, visibility on how these cashflows is being spent no one would invest or invest more into the company as we can see from the current volumes. Like NTM I to believe that this can change if the company start demonstrating that they are doing something (anything) and to be clear I understand that drilling is risky but would rather die trying than this death by a thousand lashes we are currently experiencing.

Cheers

James

Got quite excited when I saw the trading update title, thought we might finally know what’s going on with the company……

Only to find out we are trying dumps again, seem to recall this was tried and failed under Jan Nelson (CB was chairman).

I guess the positive is that copper prices are higher than years ago but at the same time if it were easy to spin a profit everyone would be doing it (not high barriers to entry)

All in all it feels a very very odd move

James

Good post thanks Guy!

No I was trying to find some economic results for Winu but couldn’t find much (busy day so maybe more a weekend job).

Interesting to see Rio's news about winu sale this morning, $399m for a 30% stake. Need to spend a little time looking into winu and see if there is any comparison to BR (it looks a higher grade resource, and is further along etc )

Jezzoo

Very fair comment, and I fully agree their is lots to be critical of CB for (communication, history of project selection, poor DD etc). However I think posts which seem to imply that CB is using XTR cash to fund group activities deserve to be challenged, that's all.

Cheers

James

LW

I’m not even sure OSV would try to defend CB on the MozGold deal, but I’m not sure it’s an example of him using XTR money on group activities unless you are suggesting something….

What bridge are you referring to?

I'm no expert on Colins other companies as I don't hold these, however you can quickly look at recent RNS to see if they have access to cash (GLR glenover sale for approx GBP2.5m and AFP financing (CLN) for up to GBP1m makes me think they do).

If there have been any "intracompany" loans we will see them in the accounts (like when GLR lent XTR GBP 50k a few years back), and if they are material I would expect these to be RNS.

It would be good if Littlewing / Jezzo can explain what they mean when saying things like "I wouldn't be happy with CB spending OUR money on his other companies". Is this simply speculation that XTR is spending more than its fair share on group shared resources or something more sinister?

Hi LittleWing

Can you reference that? I’ve seen previously that GLR let XtR 50k which has been repaid, is this what you mean? Or are you speculating that XTR is paying more than its fair share of group costs (eg shared geologists etc) or something else?

Cheers

James

Thanks for the correction Andrew, at least my notes were close enough so you knew who I meant….

CB only mentioned this as he was asked directly, in my opinion CB will only leave if the board force him out (won’t happen), he has a large success (in any of his companies) and can sail off into the sunset or Zambia proves a dud and he can’t find additional licenses which he can fund.

Jezzo

You can read about it here in more detail than my post (page 10)

https://xtractresources.com/wp-content/uploads/Xtract-AGM-Notice-2024.pdf

I think offering employees a share price based target is a good idea, and aligns everyone with us . My takeaway from the AGM was that I thought it would be more appropriate to have a higher starting share price. But end of the day if the SP gets up to 5/6p in the next year or so and the employees make a lot of money I won’t be to annoyed

Hi Andrew

Yes they have been incredibly consistent on the small scale stuff.

1.) No, all questions were asked respectfully and in fairness answered well (a little bit of waffle at times). SP performance is not something I would bring up and lack of delivery is an easy one to answer e.g. we have drilled 50k meters what other small cap has done this etc (CB actually said this a couple of times).... I and others was critical of the PR channels used and asked for more structured communication which I believe will do away with some of the over promise under delivery you get on the roast/zak from colins waffle etc.

2.) Was poor, approx. 10 shareholders each of which i recognize from prior years.

XTR AGM Notes

Manica

Cash is coming in per the agreement, meaning approx. USD $3.5m has been received YTD with an additional USD $1.5m to be paid in 2024.

CB mentioned that the decision on moving to processing the sulphides to be made by Feb 2025 then an additional $3m in 2025, I just checked the sale agreement and read this slightly differently but think it would an additional $2m in 2025 on top of the annual $3m receivable.

Kukuyu

Belief is that Kukuyu and Silverking join up, which gives it the potential for a larger project. Kukuyu on its own is likely to small with a high strip ratio so if it doesn’t join up is likely to be to high-risk low reward to take forward (happy to be corrected by other attendees here as this is from memory)

Other comment was that the ground is right up against a mine that was sold to the Chinese for circa $150m (think he was referring to Silverking ground here)

Zambia

Waiting on forestry commission and need to fix a bridge before drilling can commence, but aim is to get drilling within the next few weeks. Rainy season is usually November time, so there is time.

Diamond Drilling cost around $200/metre (this is likely on the high side and includes mob, drilling, assays etc).

Obviously, fingers are crossed but unlikely to hit mineralisation on the first hole, but will learn from the information they get from the hole etc.

Bushranger

Not really news but its dependent on Copper price

Aim is to keep the project ticking along, and in the trade news by minimum spend (no more than $150k p.a.) e.g. ore sorting studies etc

In terms of monetization an IPO route was suggested as a possibility.

In terms of getting out of the AA clause I got the impression that no progress or work had gone into this.

General

Martyn Churchill is the number 2, in Colins words if he starts getting confused about where Zambia is Martyn is likely to replace him.

In terms of PR strategy the suggestion was on being much more structured than say a Roast/Zak interview, the website will be updated.

New Scheme establish to better align with Shareholders, replacing stock options. For Year 1, basically take the highest average monthly share price and add 20% to this as the benchmark then if SP rises above this benchmark eleigible employees will get 5% of this increment. Employees are only able to receive in a given year a transaction bonus or this new incentive scheme not both. I hadn’t read the resolutions going into the meeting as I hold shares in a nominee account, so this was a surprise and to be honest seems quite generous to employees considering the bombed out state of the SP.

Good to hear from other attendees incase I missed anything or misinterpreted.

Cheers

James