George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Tax year is ending, people “taking losses” at a point where not much is going on / likely to go on over the next few days is my view.
Likelihood is that there will also be a period of slightly increased buying once new tax year begins / new ISA allowance is available and the roadmap becomes a little clearer.
Can anyone help me out...?
"To be entitled to attend and vote at the General Meeting (and for the purpose of the determination by the Company of the number of votes they may cast), shareholders must be registered in the Register of Members of the Company at close of trading on 9 February 2024. Changes to the Register of Members after the relevant deadline shall be disregarded in determining the rights of any person to attend and vote at the General Meeting."
How do I register on the 'Register of members of the company'?
Just a reminder of the “desk work” CB is so fond of that we shareholders funded re Manica.
Probably worth noting that gold price is also up circa $800/oz since this project was mapped out with little signs of slowing down which arguably increases the potential for profit somewhat.
DFS Key parameters
• Extraction Method – Conventional Open Pit
• Life of Mine – 7 years
• Total Ore Tonnes Processed – 3.3 Mt (42 ktmp)
• Total Ounces Produced – 215 koz ( ̴ 31 kozpm)
• Recovered Grade – 2.62 g/t
• Gold Price – US$1,262 per oz Project Payback – 2 years
• IRR – 41.1 %
• NPV – US$42 million (@8.4% discount rate)
• Capex Expenditure – US$43.68 million
• Direct Cash Cost – US$556/oz
• All inclusive sustainable cost (breakeven) – US$862/oz
Now does $15m in staged payments seem like a good deal for that instead of our 23% considering how little of the resource has been depleted thus far? (even if we have to fund our share of phase 2 etc)
I stand by my previous statements, the proposed sale of Manica is not good value for XTR shareholders.
I need to be clear if you’re reading this Colin, I can’t speak for everyone but myself (and any other shareholders who’d include themselves) got sold the dream of Manica one day being an operating mine in what, 2015?
It’s a gold mine we LTH’s have backed you with since day dot, I (and many others) sat through multiple placings, dilutive finance, supported the DFS, realistically spent years with the threat of losing all I’d(/we’d) invested to back this venture through to production.
It’s now in production, looking (to me anyway) like it’s moving wholeheartedly in the right direction re costs, production profile etc and now you’re asking us to sell it to “guarantee income” so we can go and explore somewhere else (which as per my previous - doesn’t sound bad) - in the hope of a sale down the line.
Well sorry, but for me, the buck stops here.
I no longer care about what prospective assets could/ifs/maybes will do in the future, probably.
I want cold, hard, cash in the bank and personally I’d rather we pivoted fully into financing and concentrating on gold production at Manica, with BR in the back pocket and trickling spare cash into Zambia exploration whilst putting the bulk back into our producing asset- that is what I would like to see.
You’ve already stated in the podcast that if other licence owners make a find near us in Zambia our ground becomes a need to have so we don’t NEED to be the first to make a find - you’ve also confirmed we already have the circa $2m needed for committed costs. On top of that we’re going to continue banking cash from the mmp 23% profit share agreement.
I see no reason to dispose of the Manica asset as “it’s hard work” or “it might cost us money” aren’t good enough reasons for me to now bail on a project I’ve been a part of through thick and thin, especially when all the info I’m seeing re production backs up my view that Manica is in fact a good project.
For the record, I want to openly thank you for all the hard work you’ve put into the company over the years and to honest, I’m under no illusion that without the one and only CB XTR probably wouldn’t exist anymore, however, I do not agree that selling our producing asset is the way forward and you’re still yet to convince me.
Interesting podcast, but to be honest, I have no bone to pick about how prospective the Zambian assets have the potential to be, that was never the issue.
Whilst intriguing, at this point - when trying to decide on the validity of the sale of Manica - I didn’t need circa half an hours worth of info convincing me about the geology of the area in Zambia and so I guess all I really have to say on that is “thanks for a good lot of information and sure, it sounds like an exciting area to develop”.
My issue - which is yet goes unanswered - is why does that make a sale of Manica necessary.
Ref: https://www.lse.co.uk/rns/XTR/proposed-disposal-of-manica-gold-project-6q16ennwdb3xhx4.html
Appendix, section 3, table 1 clearly shows us that from Q1/2—> Q3 there have been reduced costs, better recovery, more gold produced and a stable, decent sales price. Table 2 further cements the increase in production trend with an increase in gold poured.
Appendix, section 3 also reiterates what we already know about the resource:
“Open pit resource of 13.95Mt at 1.76g/t Au for 789Koz Au and an underground resource of 5.66Mt at 2.6g/t Au for 473Koz Au.”
We also know “the plant was commissioned and produced its first gold during July 2022.”
Table 1 confirms that Q1/2/3 production of 2023: 361,422 T ore mined and processed for 18,489oz produced.
There is a huge disparity between what has been mined & processed (that we’ve benefitted fiscally from) and what the total resource has to offer, I’ve spent years studying the project and I know this without a doubt.
Colin talks in the interview about the mine getting deeper, costs changing, further capital required, difficulty in monthly discussions about costs / how much is owed to XTR etc, and whilst I understand that this may create a bit of a headache at times when not the sole operator - guess what - XTR are running a gold mine!
Based on the following statement from the podcast (referenced) I’m very much expecting some further information/news on pipeline assets before I can be expected to vote on the matter at hand.
“… and I think over the next few weeks, we will make sure that the significance is well understood and taken on board on the importance of that NW Zambian couple of positions we’ve got…”
Ref approx 12:19-12:31: https://m.youtube.com/watch?v=DhOSp4gVb_0
Over to you Colin, you have until 10am on the 9th of Feb to convince us that selling the asset some of us have invested our hard earned and waited years to get into production just as it gets off the ground and efficiencies start being made for a sum of money in staged payments arguably similar to what we expected as a net profit share over the same time period is the right move.
I appreciate the want for control over an asset rather than being the silent partner, but I’d rather be a silent partner in an asset we can be relatively confident on making a good return on for the next several years than selling up to have majority control over an attempted discovery when most of our attempts so far have lead to our hard earned put into an asset we either write off or put on the back burner.
If it was $15m up front (tbh even at that price it seems like a steal considering the current production trend on site) that would sweeten the deal but staged payments?!
With how little i feel I currently know about the boards plan for the way forward I’d rather own the asset I know about and take staged payments from the current profit share agreement with the blue sky potential coming from further discovery in the licence as we put money earned back into the development of our existing, producing gold mine.
BR can stay on the back burner until it’s the right time to sell/further develop and our Zambian assets should be able to be developed from cash flow from an improving situation at Manica: better head grade/improved cost efficiencies/plant up to expected tonnage.
I don’t think I’m alone in my thoughts and at the moment, I wouldn’t say I’m convinced.
Your move CB.
XTR’s sp has been pushed down hard over the past few months, arguably too much based on current gold mining operations alone -(BR aside)- we’re simply rebounding on the way up to fairer value for what we have going on imo.
In fairness backtothesoil, there have been plenty of selling opportunities too.
Do I believe such an opportunity will present itself within a timescale I’m comfortable with?
Well considering my view is that the company is currently undervalued based on its Manica revenue stream, let alone the other irons we have in the fire, the answer to my previous question is yes.
If you’re always buying and never selling it’s awfully hard to make any money in this game.
Apologies that I'm a busy person and I only really make comments when there's something to comment on Lucky, how ridiculous of me.
"You are posting to try incourage a positive board and get a lift in the SP from new shareholders. All for your 10-20% trading." - again, I feel like you're not picking up what I'm putting down Lucky.
I hold a substantially larger holding than the amount I regularly trade with - my trading passes the time and ensures I make some money along with the ebbs and flows of the market, as I feel I've been pretty transparent about, meanwhile my larger holding will at some point in the future be sold when I feel there is fair value and I have something better to do with my money.
I'm not trying to trick anyone as you're insinuating lucky, I'm just stating facts.. XTR just announced earnings of circa £950k for Q2, our Mcap this morning was circa £9.5m, I made a statement that earning 10% of your mcap in one quarter is good going and I'm surprised it hasn't been better received by the market.
Did I buy some shares prior to todays lift when I perceived this to be undervalued based on what I was fairly sure was about to happen - yes
Will I sell said shares when I perceive there to be a more fair valuation of the company - also yes
How you're suggesting I'm trying to be sneaky and trick people into buying so I can make a trade is beyond me and to be honest, considering my transparency, yeah, I find it kind of insulting.
To be clear, I chose to buy based on my own research (which I openly shared on this bb) and burden the risk prior to news of income being confirmed, I sure as hell deserve the benefit of that decision once that news lands and the market (after being spoon-fed) catches up.
I just don't like poorly constructed attacks on my character Lucky.
If I'm being honest, yes, after being a cornerstone of the XTR investor base for coming up on a decade now, spending countless hours digging (excuse the pun) into asset history / researching and happily sharing my findings/trying to help explain to those who didn't understand certain aspects of the company and its operations that have been discussed over the years - and consistently posting in a style not dissimilar to a university level paper with references so my points made could be fact checked / verified - it did touch a nerve when you suggested I'm merely a short term trader looking for an exit point just because I wrote a post promoting an event occurring that I've waited years for finally happening - and because I wanted to point out how ridiculous the limited market reaction is when you compare quarterly earnings to mcap.
Lucky, 10th of Oct. you wrote: "Andrew4444 Said I was a weak holder for selling, doesn't look like a weak decision. Actually after holding for so long it's quite a brave decision to sell. Looks like I was right. Could buy back in what I sold, think I'll wait." Ref: https://www.lse.co.uk/profiles/lucky520/
I'm confused, because it sure looked at that point (not two weeks ago) like it was in fact YOU gloating about being right / having sold prior to a drop... so which is it, because you're now saying you're a holder and you'd take the money and run at 5p?
A couple of phrases spring to mind... 'pot calling the kettle' & 'oh what a wicked web we weave'.
Lucky, I don't think I boasted about it, I just made the point that if you're not trading some of your holding in penny stocks you probably need your head looking at. For the record, I trade approximately 10-20% of my holding at any given time, as is my prerogative.
Let's be fair about what I said (and I quote): "...whilst I broadly agree with your statement, the SP is up circa 60% in the last month. Hands in the air, as a long term holder of a large number of shares - even I traded that move.
Buys at 1.30-1.50 to sell at 2.00-2.20, cheers then."
Ref: https://www.lse.co.uk/profiles/jdau/?page=2
I've been one of the longest term investors here through thick and thin so I don't exactly appreciate the insinuation that I'm "looking for a spike to exit" like a short term trader with no interest in the company.
I'm simply pointing out that it's a bit ridiculous that a company makes circa 10% of its market cap in one quarter and the market seems relatively unphased.
Will I trade any move the SP makes, undoubtedly yes, if you require transparency (which I'm, not remotely required to give you, but will do so out of my own free will) I bought circa 400k @ 1.09 and another 100k this morning @ 1.20.
Will I sell them when the SP starts to better reflect true value? Yes.
In case anyone needs it spelling out for them, XTR just announced it earned circa 10% of its current market cap in Q2.
In the words of Maximus Decimus Meridius: "Are you not entertained?!"
ref: https://www.youtube.com/watch?v=ZtyjY6VjF9Q
The response from the crowd / market seems to match...
"The Net Profit share due to Xtract for the 6 months ended 30 June 2023 is estimated to be US$2.1 million."
Ref: https://www.lse.co.uk/rns/XTR/manica-q2-2023-gold-production-update-7j0jyqnq4a4tz5m.html
Q1 - Oz produced: 4,522
Q2 - Oz produced: 6,456
Looking good, I make that circa £944.5k to XTR for Q2 and it looks like Fairbride is starting to get up to speed.