Member Info for Jamesiecakes

Captain

No one was summarising that by keeping the 20% raises will be required, unless I have missed a post.

Clearly if/when EL 5574 is sold, then a material amount of that cash will be distributed back to shareholders. Stevemocal was suggesting that because AA would want 100% of the asset they will pay a premium for the 20% not in the buy back and other licenses (which makes sense to a degree). However my point was that as the buy has a clause that if XTR can’t fund there share of development costs there working interest in the asset is diluted and they end up with a 0.75% NSR, hence they are not going to overpay for this as they will know XTR won’t want to keep the 20% nor could they pay (as the cash would have been distributed to shareholders) so would likely end up with the 100% of El 5574 regardless. Obviously this is just speculation on my part but that’s what we are all doing anyways while we wait for actual news.

Cheers

James

Wasn’t disputing that, more your comment that they would have to go at the pace of the junior.

I fully agree they are likely to want 100%, but obviously they have the ability to buy 80% at fair value and then dilute XTR down with cash calls etc which could be there preferred route if XTR try to push them to much on the 20% they don’t have the option on.

Steve

I don’t think that’s quite right, assuming AA only brought 80% then the partners are required to pro rata the funding, if XTR can’t do this there WI is diluted down and they will ultimately end up with a 0.75% NSR (the power point doesn’t make it exactly clear how this works).

John

The buyback is clearly for 80% of EL 5575, CB just aspires to sell 100% of it and the other licenses.

Cheers

James

No doubt we should, however with the delays experienced to date I’d feel much better when it’s confirmed.

Without Manica coming online before YE I can see a small raise being required (my understanding is that the director cash forecasts are based on the assumption that Manica comes online pre 2023). Which in these markets would be less welcome than usual.

I won’t hold my breath for one of these so called news bombs but I will remain quietly confident of getting good XTR news one day

I’m a simple guy and just want confirmation that FB has started commercial production and XTR are actually making money from it!

When you sell…..

Hi Howezap

At the AGM I asked CB how XTR could declare a decision to mine, as I never really believed this as a realistic option (due to lack of finance to back up this etc). Apparently the valmin code dictates what’s required to declare a decision to mine (and having the money isn’t part of it although I’ve not read the code myself) however he emphasised that a key component was that a certain % of the resource needed to be indicated.

Cheers

James

Why would I be having a laugh with that comment, it would have been pretty weird for CB not to factor in further license potential when coming up with a forecast valuation would it not?

You say you are no longer naive and maybe I’m wrong to say this but I don’t believe you were at the event where this comment was made so you are believing people on a BB (not saying the people who attended this event aren’t trustworthy) Additionally for someone who isn’t naive and has been invested with CB for some time you prob should have learnt the guy is an optimist

All the best

James

Lucky

I was at the investor night where CB made the statement, from memory it was along the lines 20,25 or 40 pence after a few whiskeys. My take on this at the time was it was based on what he thought the asset would ultimately be worth not just on the information he had at that time so don’t think it’s fair to say the asset was worth 20/25 now we have found ascot and other targets it should be 20/25 + ascot.

No doubt the USD strength has helped with any dollar conversions, but to just focus on that is naive (in my view) when there have also been numerous headwinds since the investor night e.g. fears of recession, rising interest rates, copper price drop off, wars, huge spike in energy costs, inflation etc etc which none of particularly helps M&A.

End of the day what I’m trying to say is if CB “only” sells all the old prospector assets for 20p id happily buy him a drink despite the fact there has been some frustration on my part along this journey.

Cheers

James

Hi Joeman

From memory the first technical session was just based on existing resource e.g. P1 holes weren’t included.

Cheers

James

Hi Andrew

It’s not often I disagree with you, but I think the fact that copper has gone down in price is the reason gold is worth more when expressed in cueq so not sure it’s good news.

The overall RNS read well to me though for sure (and I could be wrong about the above)

Cheers

James

Hi Andrew

I’ve not looked into it but I’d guess it’s a case of the gold being worth more vs copper than when the holes were originally drilled rather than being better.

Cheers

James

Hi Howezap

I also found that sentence quite interesting, to be honest I had assumed the deposit was going to be more in the 0.3% cueq range based on results released to date (granted I have limited knowledge on how the resource grade is built up). Maybe they are going to run a higher cut off to achieve a better grade?

Cheers

James

Makes sense, all the best

Gixxer

I’m all for having a rant and to be honest I think this is a better place for it than most others, but you have clearly lost faith in CB so I don’t get how you can keep any money invested with him other than FOMO?

Cheers

James

Hi backtothesoil

Don’t forget empress get a royalty (% of revenue) while XTR get a % of profit (definition in recent release) so unless I’ve misunderstood your calculation I don’t think you can make that comparison as it’s not apples with apples.

Cheer

James

Really good news, and looking forward to confirmation on further progress! And special congrats to all the LTH who have been waiting for FB to start generating revenue for years!

Cheers

James

Thanks for the response Ben, and what you say makes sense.

The 0.15%, do you remember where this came from? Was it a CB interview or a study from the old owner (I’m forgetting the name)?

As well as CB comment in the last RNS my reason for thinking cut off will be more inline with 0.2%-0.25% is that this range seems to fit well with the lower end of the assays received to date, but fully except this isn’t conclusive and I could easily be misinterpreting the information!

Could be a complete rookie error on my part….. but if I look at the latest RNS it basically says for hole 42 that average grade is below the viable mining grade. Grade is generally above 0.15% so me this means the cut off XTR will use will be above 0.15% and maybe more in the 0.2%-0.25% range.

Understand that this viable cut off might be different in different parts of the deposit due to depth etc but would be interested to know others thoughts/what rookie error I’m making.

Cheers

James

My guess for what it’s worth is that there will be a formal presentation to AA in Q3 of this year (assuming they don’t find something interesting at foot rot in which case perhaps late Q4). If AA decide they want it id guess the sale would complete middle of 2023. If AA pass id guess XTR would open a data room late q4 inviting bids by say end of Q1 with the possibly sale concluding late 2023.