Andrew I'm in the belief that there may have been a contract in the signing and that was postponed maybe due to the volitility in gold price? Maybe CB pulled out from signing the deal due to the gold price rising. If I was Colin would you want to risk selling the asset at today's price when gold is rocketing and the predictions are above $2000 in the near future.
It still doesn't excuse him from failing the promised update but who knows why we didn't get it!
Just done some rough calculations and at today's gold price the alluvials are basically covering all company costs and expenses. Effectively we a breaking even at today's price of gold. We could be turning a profit soon as a whole if gold keeps rising.
I know we don't always trust what CB has said but he has said that all aspects of hard rock are progressing satisfactorily, therefore I take it the plant is going to be completed sometime between July and October and processing some material. That's providing we are not massively effect by the pandemic. Gold price is on the up again today, passing $1700. That puts the minimum buy for MMP at around $28 million now!! I think we will see an uplift in SP this week. Xtract is ridiculously undervalued. Gla
Andrew, the contract States with a long stop date of October 1 and the recent RNS stated alluvials will be taken over by hard rock in the later part of the year if not sooner. For them to process the material the plant must be built and tuned in. I suspect we could see a delay by I still believe the plant will be built and processing by Oct 1 at the latest. That is unless they go on lockdown for 3 months?
I hope MMP have received delivery of the necessary equipment and materials before a lockdown might be put in place. Saying that, the plant is due to be up and running with 29,000 tones going through by July 1st. So I assume the plant must be close to being ready and have at least started construction but who knows? I don't think we would get an RNS stating the start of the build but I do think we would get one for the completion.
I read the agreement deal again today and it made me think, what I would do if I was MMP. MMP are carrying all the cost's and the risk! They will be giving away 23% profit at current rates. So if they are carrying all the risk anyway, why not buy xtract out at a discount? They will save 23% of the profits as well as getting the license for a 15% discount. That's how I have read it, pleased to be corrected if someone more experienced knows. Also the option to buy the concession is only open for two years of which one has nearly passed.
Well they should be here in the next four weeks!? Seems to have come around fast due to the incredibly late result prior. Rainy season is over by the sounds of it so 2nd quarter will be due on july along with the new production specified to start in July. Hard rock news to come and hopefully hard rock production to start somewhere between July and December. All looks promising if he can finally deliver.
RE: Colin Bird, Executive Chairman03 Apr 2020 11:01
Because there was no mention of manica or hard rock I assume Colin asked not to mention them as he cannot answer any questions due to a current deal going on. That's the only reason I believe he hasn't mentioned it! If there was no deal being made and we are going ahead with the deal we have then he could of mention the progress or something. I suspect we will hear something on the hard rock soon.
RE: Expected detailed report to be tabled01 Apr 2020 09:40
It's not going to move the SP. Just another set of drill results, you still need to get it out of the ground. That's why it's not moved. It may have moved the SP if it was unexpected good news but it wasn't it was expected to be hard rock news and that's why it's been taken so badly.