Share Name Share Symbol Market Type Share ISIN Share Description
Xtract Resources LSE:XTR London Ordinary Share GB00B06QGC57 ORD 0.01P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 0.0175p 0.015p 0.02p 0.0175p 0.0175p 0.0175p 109,011,295 07:30:24
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 0.0 -4.6 -0.1 - 5.69

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Date Time Title Posts
24/4/201715:25XTRACT RES 0.0201p to buy,time for a bounce741.00
23/4/201709:09Xtract resources5,116.00
17/4/201707:29Xtract ing the urine109.00
06/3/201713:31Extract with Charts & News65.00
05/3/201710:05XTR Fresh Start276.00

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Xtract Resources (XTR) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
15:08:220.0210,000,0001,800.00O
15:01:550.023,000,000540.00O
14:37:290.022,354,233423.76O
14:17:150.021,924,463352.18O
14:08:100.021,340,933244.05O
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Xtract Resources (XTR) Top Chat Posts

DateSubject
24/4/2017
09:20
Xtract Resources Daily Update: Xtract Resources is listed in the Oil & Gas Producers sector of the London Stock Exchange with ticker XTR. The last closing price for Xtract Resources was 0.02p.
Xtract Resources has a 4 week average price of 0.02p and a 12 week average price of 0.01p.
The 1 year high share price is 0.24p while the 1 year low share price is currently 0.01p.
There are currently 32,499,380,620 shares in issue and the average daily traded volume is 197,818,673 shares. The market capitalisation of Xtract Resources is £5,687,391.61.
03/4/2017
16:18
cautoussid: NICE BUYING AGAIN nice to see blue again for xtr share price
05/3/2017
10:05
pwhite73: simon_64 - "Looking good with the volume we have had over the last couple of sessions..." In real terms the volume is not high. It is only appears high because the shareprice is so low at 0.023p. FRR has a share price of 0.23p ten times as high. Volume on Friday was 335m. Multiply that by a factor of 10 and you get 3.3bn compared to XTR 1.1bn. KOD has a share price of 0.26p ten times as high. Volume on Friday was 496m. Multiply that by a factor of 10 and you get 4.96bn compared to XTR 1.1bn. VAST has a share price of 0.60p thirty times as high. Volume on Friday was 67m. Multiply that by a factor of 30 and you get 2bn compared to XTR 1.1bn. MTV trashed its share price in a similar vein so that the stock was always at the top of the Volume Leader Board. Needless to say the stock was utterly worthless. People go on about the overhang taking time to clear. AIM companies often use overhangs as an excuse for forward selling even more discounted shares. I said in an earlier post I think XTR was only left with about £400k after the last placing. It still needs more money to carry out its operations.
02/3/2017
12:11
12bm: Anyone that suffers from insomnia might like to read this. cautoussid - 02 Mar 2017 - 08:08:18 - 3410 of 3553 Xtract resources - XTR so many blue trades now coming in already looking like may be a interesting day if this number of buyers continue to load up with shares cautoussid - 02 Mar 2017 - 08:05:50 - 3408 of 3553 Xtract resources - XTR nice buying now after the sell , may see a blue finish if this buying continues cautoussid - 02 Mar 2017 - 08:02:14 - 3405 of 3553 Xtract resources - XTR HOPING FOR A BLUE finish TODAY cautoussid - 02 Mar 2017 - 08:00:28 - 3404 of 3553 Xtract resources - XTR QUIET START , NO TRADES AT THIS TIME cautoussid - 02 Mar 2017 - 08:53:05 - 3450 of 3554 Xtract resources - XTR 0,0242 now being paid , as MMS move buying price up cautoussid - 02 Mar 2017 - 08:41:52 - 3443 of 3554 Xtract resources - XTR 256,512,244 shares traded already ,so many buys already today cautoussid - 02 Mar 2017 - 08:39:10 - 3442 of 3554 Xtract resources - XTR and still this buying continues, like how volume moving up cautoussid - 02 Mar 2017 - 08:26:32 - 3432 of 3554 Xtract resources - XTR there may be some here who may not like the volume of blue trades rolling in ,how ever they there for every one to see cautoussid - 02 Mar 2017 - 08:25:40 - 3430 of 3554 Xtract resources - XTR like the blue rolling in cautoussid - 02 Mar 2017 - 08:22:10 - 3428 of 3554 Xtract resources - XTR ANOTHER 50,000,000 share buy , like watching these blue trades coming in Today cautoussid - 02 Mar 2017 - 08:18:50 - 3423 of 3554 Xtract resources - XTR CathDrew2 LIKE TO SEE 50,000, 000 share buy cautoussid - 02 Mar 2017 - 08:17:44 - 3420 of 3554 Xtract resources - XTR 50,000,000 share buy , like when trades like this seen cautoussid - 02 Mar 2017 - 08:15:42 - 3417 of 3554 Xtract resources - XTR nice to look at all the blue trades ,and two sells this morning , cautoussid - 02 Mar 2017 - 08:12:57 - 3413 of 3554 Xtract resources - XTR sea of blue , and two sells this morning at this time cautoussid - 02 Mar 2017 - 09:38:48 - 3482 of 3554 Xtract resources - XTR still the chunky buyers load up another nice buy 0f 42,000,000 shares showing cautoussid - 02 Mar 2017 - 09:29:07 - 3473 of 3554 Xtract resources - XTR 534,045 ,051 volume cautoussid - 02 Mar 2017 - 09:28:03 - 3472 of 3554 Xtract resources - XTR any looked how much volume moving up already cautoussid - 02 Mar 2017 - 09:21:14 - 3467 of 3554 Xtract resources - XTR again another 50,000,000 share buy cautoussid - 02 Mar 2017 - 09:19:14 - 3465 of 3554 Xtract resources - XTR 10,000,000 at 0,0240 , many other trades 0,02399 cautoussid - 02 Mar 2017 - 09:18:08 - 3464 of 3554 Xtract resources - XTR spread now closer 0,028 to sell and 0,02399 to buy , like to see spread moving closer cautoussid - 02 Mar 2017 - 09:09:50 - 3461 of 3554 Xtract resources - XTR also like to see how buy price gradually moving up with buys showing at 0,0245 ,and 0,0244 cautoussid - 02 Mar 2017 - 09:06:05 - 3460 of 3554 Xtract resources - XTR first hour and look at volume of buys cautoussid - 02 Mar 2017 - 09:02:33 - 3456 of 3554 Xtract resources - XTR ticked up more 0,0245 paid cautoussid - 02 Mar 2017 - 08:58:40 - 3453 of 3554 Xtract resources - XTR 41,000,000 at 0,0242 , like how share price moving up some more again cautoussid - 02 Mar 2017 - 10:22:26 - 3514 of 3554 Xtract resources - XTR also like the volume of buys TODAY , cautoussid - 02 Mar 2017 - 10:21:36 - 3512 of 3554 Xtract resources - XTR like how spread now positioned cautoussid - 02 Mar 2017 - 10:16:47 - 3507 of 3554 Xtract resources - XTR if this amount of shares trade already today , may be in for an interesting afternoon cautoussid - 02 Mar 2017 - 10:13:21 - 3502 of 3554 Xtract resources - XTR 714,039.116 shares traded at this time already cautoussid - 02 Mar 2017 - 10:10:05 - 3498 of 3554 Xtract resources - XTR thanks to the derampers for spending so much time posting , may even be helping more people to look at xtr cautoussid - 02 Mar 2017 - 10:07:11 - 3496 of 3554 Xtract resources - XTR FromLeeds may not be easy for some to watch so many buys coming in Today cautoussid - 02 Mar 2017 - 10:04:36 - 3493 of 3554 Xtract resources - XTR now look how at level of volume traded today already cautoussid - 02 Mar 2017 - 10:03:21 - 3492 of 3554 Xtract resources - XTR some one posted yesterday how many million shares traded in recent days cautoussid - 02 Mar 2017 - 10:02:34 - 3491 of 3554 Xtract resources - XTR the number of million s of shares traded in recent day s,and volume of trades already today cautoussid - 02 Mar 2017 - 09:50:05 - 3483 of 3554 Xtract resources - XTR Professor Pettigrew , like this buying volume seen already Today , if this continues ,hoping for a blue finish cautoussid - 02 Mar 2017 - 10:48:07 - 3534 of 3554 Xtract resources - XTR some number of these large buys already today cautoussid - 02 Mar 2017 - 10:47:15 - 3533 of 3554 Xtract resources - XTR 42,000 ,000 share buy again cautoussid - 02 Mar 2017 - 10:35:46 - 3529 of 3554 Xtract resources - XTR may top slice some at 0,06 depending on buying volume cautoussid - 02 Mar 2017 - 10:33:30 - 3528 of 3554 Xtract resources - XTR even looking at the size if some of share buys today can see why so large a volume cautoussid - 02 Mar 2017 - 10:32:35 - 3527 of 3554 Xtract resources - XTR so many shares have moved to different buys cautoussid - 02 Mar 2017 - 10:32:14 - 3526 of 3554 Xtract resources - XTR past number of days so large a volume of shares bought cautoussid - 02 Mar 2017 - 10:31:27 - 3525 of 3554 Xtract resources - XTR Professor Pettigrew , have a good day in London , hope you can still post occasionly ,find your posts informative ,atb cautoussid - 02 Mar 2017 - 10:29:29 - 3523 of 3554 Xtract resources - XTR not easy to watch this buying if not holding or maybe not holding enough shares cautoussid - 02 Mar 2017 - 10:25:32 - 3519 of 3554 Xtract resources - XTR not easy if some were spread betting and not thinking this this number of buys may be seen cautoussid - 02 Mar 2017 - 10:23:53 - 3518 of 3554 Xtract resources - XTR NOW 0,0237 to buy ARE Mms starting to move upwards again looking at latest trades coming in cautoussid - 02 Mar 2017 - 12:04:34 - 3552 of 3554 Xtract resources - XTR are mms starting to move share price up ,slightly higher paid again for trades cautoussid - 02 Mar 2017 - 11:51:50 - 3549 of 3554 Xtract resources - XTR CATHDREW , so many buys ,have place a high sell limit on my shares , Mms may be starting to run low on shares of this buying keeps at this level have read on other share boards placing a high sell order may help stop shares from being loaned out cautoussid - 02 Mar 2017 - 11:09:51 - 3546 of 3554 Xtract resources - XTR is it pi who are buying these larger chunky buys cautoussid - 02 Mar 2017 - 11:09:06 - 3545 of 3554 Xtract resources - XTR also still interesting to look at the number of shares being traded cautoussid - 02 Mar 2017 - 11:08:17 - 3544 of 3554 Xtract resources - XTR 1 billion shares now traded cautoussid - 02 Mar 2017 - 11:07:41 - 3543 of 3554 Xtract resources - XTR 1 billion shses traded cautoussid - 02 Mar 2017 - 10:55:27 - 3541 of 3554 Xtract resources - XTR Chinese Investor , will keeep watching and looking at posts to read some of these corkers cautoussid - 02 Mar 2017 - 10:52:30 - 3539 of 3554 Xtract resources - XTR please keep posting ,good to see posts which ever their agenda cautoussid - 02 Mar 2017 - 10:51:02 - 3538 of 3554 Xtract resources - XTR 960,546,269 , not even 3 hrs trading yet cautoussid - 02 Mar 2017 - 10:49:53 - 3536 of 3554 Xtract resources - XTR Chinese Investor ,looking forward to this afternoon with the buying volume seen already today Looking forward to this afternoon's efforts.
16/2/2017
19:13
barnetpeter: share prophets say: I started writing this article on Xtract Resources (XTR) this morning and was going to comment on how sentiment was turning and Colin Bird’s straightforward approach in recent RNS’s was to be applauded and then – WHAM - a placing RNS from hell and I’ve had to rewrite the whole piece. Thanks Colin! I had written that although the RNS’s on the Auroch debt settlement, which in essence was just turning the debt into convertible loan notes, and the alluvials deal with Nexus were not game-changers on their own, they were set out clearly and in a no-nonsense way and Colin appeared to be delivering on these small but essential steps towards generating shareholder value. Sentiment was returning and as I was writing in the morning, the share price had reached 0.05p up from a recent low of 0.0125p. I even wrote that Xtract could probably even get a small-ish placing away at these prices to cover working capital needs pending the DFS. It all looked so promising. Unfortunately, it wasn’t a small-ish placing…...and it wasn’t at those prices. At 2.40pm this afternoon, Xtract announced that it had raised £1.88 million (before expenses) by conditionally issuing over 10 billion shares at a price of 0.0185p. 10 BILLION SHARES AT 0.0185p! An absolute body blow for the average PI who thought that things were finally turning for the better. Funnily enough, the share price has crashed back down to a closing price of 0.0225p. The whole thing now just reeks of an elaborate pump and dump. Why was so much needed and why couldn’t Colin have taken advantage of the higher price in the market? Apparently the proceeds will be used: “…..to fund the completion of the Definitive Feasibility Study, extending Environmental Impact Assessment on all alluvials within the Manica project, further consolidation within the Manica Area, and for general working capital purposes. In addition, the Company is presently reviewing a number of investment opportunities to diversify its interests.” To fund the completion of the DFS?? It’s due by the end of the month - how much more can be spent on that? Why do you need to do an environmental report on the alluvials? I thought the idea was for contract miners to turn up with their spades and get on with it. In other news, Auroch has been taking advantage of the recent liquidity converting $200,000 of its convertible together with various fees at a price of 0.0132p for a mere 1.5 billion shares. Also, $110,000 of the amount raised will be used to pay off part of Auroch’s remaining convertible. Yorkville has also taken advantage of the pump. The equity swap deal that was put in place in November 2016 has now been terminated with one final payment from Yorkville of £240,000. I estimate that Xtract would have received no more than £400,000 in total from Yorkville under this deal (rather than the more than double that anticipated) and, remember, it issued 3.5 billion shares under that deal. The remaining Yorkville shares have now also all been placed by Beaufort so that overhang has gone. The number of shares in issue here is now totally out of control. I estimate that by the time Auroch has converted all of the debt outstanding to it, there will be around 40 billion shares in issue. What’s the record? With the only asset today being Manica, even if one thought that was worth £20 million, and that’s a lot more than Xtract paid for it, it puts a cap on the share price at 0.05p. Accordingly, the current share price of 0.25p feels as good as it can get for now until the Manica DFS and financing plans are set out but I wouldn’t be surprised to see it going lower as some investors may just have had enough for now and sentiment may turn negative again. The good news though is that Xtract has some money in the bank for now, although it still has to make the Yorkville debt repayments; the bad news is that it may have lost the shareholder trust that it had spent the last few months trying to rebuild. I hope for your sake the DFS is a belter, Colin.
16/2/2017
08:54
the stigologist: What are the odds on XTR share price increasing above 0.12 brain cells ?
28/10/2016
00:01
gunner_coetzer: Have JLP or GLR or XTR brought a mine to profit? In all the companies above there were great promises on many prospects. None of the promises were fulfilled. Name something in the last 7 years that he has done that we can verify with Google. The XTR share price has fallen by over 99%. Who knew? Well, anybody that had followed Colin Bird's record, they knew. The institutions, they all knew. That's why they do not invest in ANY of Colin Bird's companies. Who knew? Everybody but mug-punters! And the mugpunters still believe even though the shares are 99% down.
24/10/2016
00:51
gunner_coetzer: For those of you who don't know, here is how a SEDA loan works: The SEDA company lends $10m to the borrower (lets call them XTR). They charge a fee for this and a rate of interest between 10% and 15%. They can not demand that the company pays the loan in cash. Instead they short sell shares in XTR and then later cover their position by buying shares from XTR. To keep things simple, Imagine that the XTR share price was 100p. The SEDA Company sell 1 million shares at 100p in week 1. This knocks the price down to 90p They then sell 1 million shares at 90p in week 2 This knocks the price down to 80p. They then sell enough shares to keep the price at 80p for a week (perhaps 200k). They now buy shares from XTR (new issuance) at a 7% discount to the average price of the last 5 days (80p) thus paying 74.4p per share. 2,200,000 shares at 74.4p = £1.687m This £1.687m now gets knocked off the outstanding loan. The SEDA company had sold the shares for a total of £1m + £0.9m + £0.16m = £2.06m Thus they made a profit of £2.06m - £1.687m = £373,000 in 3 weeks. they took no risk. If they had knocked the share price down by more, they would have made a larger profit. They also got paid the interest and the fees. As is blatantly evident and has been proven in every case of a SEDA loan, the company's share price gets splattered by the SEDA selling. Its in their interest to do so.
19/10/2016
12:05
12bn: gunner_coetzer17 Oct '16 - 18:58 - 2276 of 2298 0 0 The share price can not rise whilst Yorkville have a SEDA facility open. Ask freedom97 what happened when Jubilee platinum had a SEDA loan with them. The share price got smashed by about 90%. Posters claimed that Colin Bird said that he didn't expect them to behave the way that they did and if he had known, then he would never have dealt with them. It is in Yorkville's interest to smash the share price They sell short and then buy back at a discount to the share price just after they finish their selling. The more they smash the sp, the less they pay to replace their short position. I know that, Colin knows that and freedom knows that. Every time the price shows strength, they go at it again. They say that they have a £10m loan, but in reality these SEDA deals just mean that it is a maximum of £10m payment for shares to cover those that they have shorted. That is an awful lot of shares for a company with a £3m market cap. In reality, the amount of shares that they will eventually buy will be an order of magnitude les than this because the company can not issue all these shares without getting new authorities from share holders. Freedom97. I would welcome your views on how this decimated the share price of Jubilee and if you see anything different here.
22/6/2016
06:29
12bn: richpoorkid 21 Jun'16 - 10:56 - 528 of 538 0 0 Help me out here please? The story seems to be good but the share price is in free fall. WHF is going on?///////// Basically XTR had issued shares to 2 companies,Auroch and MTI,they both had an interest in the successful development of Manica gold mine and alluvial deposits. MTI decided to buy Manica lock stock and barrel and so no longer had a need in owning XTR shares to keep their interest in Manica. Auroch only interest in XTR was also Manica,they sold it to XTR and so wanted a stake in future profits from it. Now that MTI has agreed to buy Manica both these companies reasons to hold XTR shares vanishes,so they both sold or are selling. This has driven the share price down lower and lower until it is at this rock bottom level,imo. The share price will bounce far but probably when the supply of shares is exhausted,which won't be apparent until the share price shoots up! The trick is buying at the bottom for the bounce but if you wait for certainty then the share price will have already risen far,imo.
07/6/2016
07:48
12bn: NS Number : 3765A Xtract Resources plc 07 June 2016 7 June 2016 Xtract Resources Plc ("Xtract" or "the Company") Final Results Xtract Resources Plc (AIM:XTR) announces its final results for the year ended 31 December 2015, a year in which the Company achieved significant milestones in order to deliver on its growth objectives and shareholder value. Financial highlights -- Revenue received from concentrate GBP0.35m (2014: GBP1.14m) -- Net loss of GBP4.58m (2014: GBP2.95m) -- Administrative and operating expenses of GBP2.43m (2014: GBP2.34m) -- Project costs of GBP0.14m (2014: GBP0.21m) -- Cash of GBP3.76m (2014: GBP0.16m) -- Net assets of GBP7.55m (2014: GBP1.60m) Operational highlights -- Acquired the Manica Gold project -- Successfully addressed flexibility problems at Chepica Gold mine -- Raised equity and debt capital to advance all projects -- Advanced Manica BFS on time and within schedule Corporate highlights -- Strengthened management team -- Further strengthened strategic alliance with MTI Jan Nelson, CEO of Xtract Resources commented: "In 2015 momentum continued and the team has made significant progress to deliver on our 5-year plan of becoming profitable gold producer. We are 3 years into this journey and are confident that we will deliver on our vision within the remaining 24 months. We have resolved the flexibility issues at the Chepica mine and continue to invest capital to grow our production profile. The Manica asset will allow us to realise significant cash flow that will enable us to execute on our strategy and deliver shareholder value without any significant dilution." The Annual Report will be posted to shareholders today, including Notice of the Annual General Meeting of Xtract Resources Plc which will be held at the offices of Fladgate LLP, 16 Great Queen Street, London WC2B 5DG on Thursday, 30 June 2016 at 11:00am. Enquiries: +44 (0)20 3416 Xtract Resources Plc Jan Nelson, CEO 6471 Derrick Lee +44 (0)131 220 Cenkos Securities plc Beth McKiernan 6939 +44 (0)207 382 Beaufort Securities Jon Belliss 8300 +44 (0)20 7796 8647 St James's Corporate +44 (0)7798 Services Limited Phil Dexter 634398 +44 (0)20 7193 Justine James / John 7463 Bick +44 (0) 7525 Gable Communications xtract@gablecommunications.com 324431 Chairman's Statement Dear Shareholder, In 2015 momentum continued and the team has made significant progress to deliver on our 5-year plan of becoming a profitable gold producer. We are 3 years into this journey and are confident that we will deliver on our vision within the remaining 24 months. We have reviewed several projects in the period under review but I will focus on the Manica project and Chepica mine as these in particular were expected to enable us to add value for shareholders through capital appreciation and physical gold production. On 29 June 2015 Xtract announced the acquisition of the Manica gold project in Mozambique from Auroch, an Australian listed Company. The acquisition was by cash and shares with a total consideration of US$12.5 million. The preliminary figures produced by Auroch suggested that the mine could produce revenues of some US$55 million per annum with pay back taking less than 3 years. The total life of the project was expected to be 8 years of which half would be from surface mining and half from underground. During the period under review the Company made certain revisions to the deal structure as it carried out further due diligence with a view to optimising metallurgy and extending mine life. The Company has sought to add value to the Manica project throughout the time of its ownership. As part of the funding for the acquisition Xtract raised a total of GBP4.4 million at 0.3p per ordinary share. The Company recognised that there was an opportunity for alluvial gold to be mined as a separate venture and consequently on the 20 October 2015 Xtract entered into an agreement with MTI to work a separate project on a joint venture basis which would come into effect upon completion of the transaction. In essence the project required that MTI finance the capital for the plant whilst Xtract operate the plant and provide funding for such operation. It is envisaged that any profits from the operation will be shared on an equal basis between MTI and Xtract. This agreement was considered in the best interest of Xtract since no new capital had to be found and that the alluvial material would have to be removed in any case to access the proposed open pit workings. The Chepica mine progressed albeit not without some technical challenges and sadly a fatal accident in December 2015 resulted in two fatalities at the mine. The Board and Management were greatly saddened by this incident and for the families and loved ones of the deceased. Following an independent review, the Company was exonerated for any blame or liability in connection with the tragic deaths. The technical challenges at the Chepica mine have been in maintaining sufficient development tunnels in order to supply feed to the processing plant at the required rate. The objective throughout has been to proceed to stoping, i.e. three dimensional mining, as soon as possible. Mine planning required forward knowledge of the gold grades that would be worked during the next five year plan. To this end we embarked on a surface drilling programme which identified and delineated continuing reef systems particularly at the Colin mine. The progress made in improving mining flexibility and building up volume from underground was addressed in the period under review and represents a significant milestone in the development of the mine. The progress made at Chepica was temporarily impacted by the stoppage of the plant due to the reported fatalities, although the mine is now delivering forecasted gold grades as the team has resolved the issues in getting the recoveries in the plant back to the required levels. The team is committed to continuing to improve recoveries and good inroads are being made in this regard. My previous reports have spoken much about the very difficult financing circumstances, commodity prices and poor shareholder perception to natural resource companies of any size. We sense a renaissance within our sector and the Board feels that we must be in a position to take advantage of what might be a very short turn around in prospects. For the last five years we have lived in an environment of too many projects and no money. We believe by this time next year or earlier there will be a reversal whereby funding will become available and project flow will dry up. In May 2016 the Board received an offer from MTI to purchase the entire Manica project for a cash sum of US$17.5 million, subject to due diligence. On 25 May 2016, the Board, after due and careful consideration, accepted the offer. The prime reason for the decision is that a strong cash position will allow Xtract to take best advantage of current opportunities in the mining resource space which may not be available or affordable by the year end. Whilst the Board has considerable confidence in the Manica project there is a consensus opinion that such a cash offer will take the Company into an arena of better earnings and prospects consistent with the expertise of the Board and Management. Finally I would like to thank all of my fellow Directors and Management for their tenacity and sterling work during the period under review up to the point of issuing this annual report. Colin Bird Non- Executive Chairman 6 June 2016 Strategic Report Writing a strategic review to shareholders for the period ending December 2015 is always challenging as a lot has happened at Xtract since the period end. As a result, starting with a review of what has transpired without giving some perspective would not do this annual report or shareholders justice. Therefore I am going to start this report with my view of the future before I put our activities for the year into perspective. The future - where are we going? There are a number of systemic issues that face a junior mining company such as Xtract. It is important for all our stakeholders to understand these issues, as it is these very issues that impact our current and future performance and therefore shape our strategic compass. The bottom line is that we will not realise our vision if these issues are not navigated. Strategy is ultimately about choice as we adapt to realise shareholder value. The timing of when we realise certain deliverables is also influenced by these issues and in turn effect share price and market capitalisation. The first issue is, how do we buy an asset? When building a junior mining company such as Xtract from a position where there are no assets in the Company, the only commodity that we have to trade is our shares. Shares are issued to acquire assets (as a junior normally does not have cash in the bank to buy anything) and then these assets need cash to be operated and developed. This means the company issues more shares to have enough working capital to get to steady state production. Adequate working capital is the second issue that is important. Without enough working capital wrong decisions can often be taken at an operational level. The third issue is single asset risk. Having only one asset means that all one's eggs are in one basket and if something goes wrong then the entire company is at risk. Not every project that is developed becomes a success. One normally cycles through a few projects before one becomes a success. Therefore the Company normally is focused on acquiring more than one project or asset to address this problem. This is obviously done without losing focus. Unfortunately this once again leads to the issue of more shares. The fourth issue is that of operational set-backs and timing. Despite management's best endeavours things do go wrong from time to time that impacts on production delivery. This influences cash flow and therefore requires the company to come to market from time to time to issue more shares to address such cash crunches. Issuing shares causes dilution to existing shareholders, which is typically not well received. To make matters worse, placing shares for cash can often be carried out at a discount to the current share price. The fourth issue is therefore growth (either operational or capital). Share price dilution can only be absorbed if there is growth over a certain period of time. In addition to these internal issues the Company also faces external issues such as fluctuation in commodity prices and global market forces that impact on revenue realised from production. External forces also impact the share price especially in the case of a fluctuation in the gold price. In summary, it is the Board's responsibility to manage risk and navigate the following key issues that ensure that the business remains viable: Issue Approach to mitigate risk ---------------- ---------------------------- Single asset Acquisition of other assets risk ---------------- ---------------------------- Working capital Combination of debt and equity finance ---------------- ---------------------------- Growth Re-cycling assets ---------------- ---------------------------- All of this takes place within a certain time period which guides our shareholders as to how much they are willing to invest (their risk appetite) and what their expectation is in terms of how long before they realise return on their investment. Management must be allowed the flexibility to make certain decisions relating to the issues mentioned above to ultimately arrive at a point where a certain level of shareholder value is returned. Shareholders must also remember that as long as management successfully navigates the issues above, shareholder value is created. This might not be evident immediately or in the short term in for example share price appreciation but it will unlock returns over the medium to long term. Xtract is building a junior gold mining house that will be profitable and be able to fund its future growth. We have not arrived at this point yet but have made considerable progress in getting to this point. A mining company is not built in one year and we have set ourselves a period of 5 years to achieve this. We started this journey in June of 2013 under my leadership and are now 3 years along the path of reaching the goal we set ourselves. This means we have only another 24 months to get to achieving our vision and reaching our destination. I am confident that we will achieve our objectives and the operational summary that follows will clearly map out what has been done to reach our end goal. 2015 was a transitional year for Xtract, one in which we acquired a significant project with the acquisition of the Manica Gold Project in Mozambique and addressed the significant challenges presented to us at Chepica Gold and Copper Mine in Chile. Committed to our strategy we evaluated the copper opportunity at O'Kiep and Carolusberg, which did not meet with our stringent criteria for our acquisition strategy and so elected not to proceed with the acquisition having completed a detailed evaluation of the project. Manica Gold Project, Mozambique The Board was delighted to sign an agreement in June 2015, to conditionally acquire the Manica gold project in Mozambique from Auroch Minerals NL, an ASX listed Company. The acquisition was approved by Auroch shareholders in October 2015 and completed in March 2016, when Xtract received approval from the Mozambican mining authorities. The project was expected to deliver 50koz of gold production when in production, at a cash cost of US$549/oz and has excellent infrastructure. At the time of signing the deal, the project had a JORC Compliant resource of 900koz (9.5Mt @3.01g/t in situ, which has increased to 1.257moz (17.3Mt @2.26g/t) following the independent technical report, completed by Minxcon (Pty) Ltd in May 2016. The BFS remains on track to be completed within Q2 of 2016. Manica Alluvial Gold Project Part of the Manica project included the Manica Alluvial Gold Project, and in October 2015 we signed a Joint Venture Agreement ('JV') with Mineral Technologies International Limited ('MTI') to mine the alluvial project, which it expects will produce c32,000oz gold per annum (16,000oz gold per annum attributable to Xtract). Importantly, MTI will fund the construction of the alluvial gold plant, and Xtract will operate the plant. Gold produced will be attributed on a 50:50 basis and Xtract was to be responsible for the operating costs of the project. Sale of Manica Gold Project - Post reporting period Post the reporting period the Board accepted an offer to sell the Manica asset for US$17,500,000 subject to certain conditions being met. The decision to sell this asset enables the Company to more quickly realise capital growth from the asset without having to raise significant equity or debt capital and therefore incurring significant dilution. Manica represent an example of how management has added value to the project in a very short period of time and have recycled it to acquire other assets that will allow us to realise our vision within 24 months. Should the sale not go through the Board has an alternative strategy that will allow the Company to continue to develop the asset without dilution to shareholders. Chepica Gold and Copper project, Chile Development at Chepica gained good momentum in the first half of 2015, with operations team working strategically in order to create mining flexibility in addition to appointing a contract mining team which led to improved efficiencies and lower operating costs. Over the next few months, development work accelerated, which led to several discoveries of new gold bearing reefs including two at the Salvadori prospect, in March and May, and the Colin prospect in June. Production continued to build steadily and in April the milling capacity at Chepica was increased to 10,000 t/month following the installation and commissioning of a new ball mill and the upgrade of the two existing mills. In April, gold grades increased ten-fold, to over 400g/t, as ore from Salvadori II was processed. We were pleased to renegotiate the earn-in option agreement on Chepica, with payment schedule deferred, and the renegotiation of the option payments remains ongoing. On and off reef development was increased in June, with two additional reefs developed for stoping Due to major earthquake activity on 17 September 2015 (Santiago, 250km north of the mine, was affected by a magnitude 8.3 earthquake) the main access haulage at the Chepica Main prospect was submitted to major stress. Management took the decision that the haulage was unsafe and could not be used or re-supported and, put plans in place to re-develop a new haulage to access the ore-body from a different position. Safety remains a priority and the impact of this was that the main areas ready for stoping would only be accessed in late December. It was with great sadness that we had to report two fatal accidents, which occurred on surface at Chepica in December 2015 and our thoughts and support remain with the families. The Company temporarily shut down the processing plant whilst a risk assessment was carried out. The Inspectors of both Mines and Works were required to sign off on the changes implemented as a result of the risk assessment. Sign off came in early February 2016, following which the processing plant was restarted. This inevitably impacted production in Q1 2016, and the project was expected to mill c30,000 tonnes in Q2 2016 as it got back on track to achieving its production targets. The issue of flexibility with regard to volume at the mine has been resolved and we are now generating enough rock from underground to feed the mills at a rate of 10,000 tons per month. The grade at the mine is also running at expected levels. Recoveries at the mine remains problematic and is one of the key issues we are focusing on at the current time. O'Kiep and Concordia Copper Tailings Projects, South Africa In March 2015, we signed a Deed of Assignment with Mineral Technologies International ("MTI") for an option to acquire the O'Kiep sulphide copper tailings project in the Northern Cape Province of South Africa. The Deed of Assignment was renegotiated in May resulting in a reduced cash payment of US$2.875m, saving 19% of the total consideration due. The terms included the issue of 69,752,768 new ordinary shares of 0.01p to the value of c.US$375,000. On 3 February, 2016 the Company announced that it had received the results from the metallurgical and recovery test laboratory and following a detailed evaluation, concluded that the recoveries are too low to produce a viable copper concentrate. The Board therefore elected not to move ahead with the tailings project and there would be no further liabilities or costs incurred in respect of O'Kiep and Carolusberg. Funding In 2015, Xtract raised a total of GBP9.15 million through three Placings in the first half of the year: -- In March, the Company raised GBP1.75m at 0.15p which enabled underground development work to accelerate at Chepica. -- In May, a second fund raising was completed raising GBP3.0m at 0.25p, which enabled Xtract to make progress with its acquisition strategy as well as for ongoing development at Chepica. In addition, Xtract was able to repay the outstanding balance of its loan agreement with YA Global Master -- The third placing was completed in June, raising GBP4.4m at 0.30p, which was raised as part of the consideration for the Manica acquisition. Outlook We have resolved both the volume and grade problems at the Chepica Mine. Drilling has shown that we have multiple reef systems along strike with a considerable down dip extent. We are almost on reef at the Chepica main adit that we had to re-develop after the earthquake. We have therefore successfully resolved the flexibility issues at the mine and have built the production profile up after the two fatalities that stopped production for almost 3 months. Getting back to the required recoveries in the plant is the last issue we are in the process of resolving at the mine. Despite this we continued to fund all our activities at the mine and advance the completion of the BFS at Manica. The offer for Manica post period will allow us to strengthen the balance sheet considerably and allow significant capital growth that combined with production growth from the Chepica mine will allow us to achieve our stated strategy of becoming a profitable gold mining company within the remaining 24 months we have set ourselves. At the same time we address all the issues mentioned at the beginning of this strategic report that will ensure that the business is able to mitigate all internal and external issues and realise shareholder value. In addition the Board has put in place several alternative plans should the Manica sale not realise as is expected that will allow us to achieve the same result but with slight changes. We are therefore well positioned to create value for our shareholders. In addition the cash from the sale of Manica will allow the Company to capitalise on potential opportunities to add to Xtract's production profile in the future. I look forward to an exciting year for the Company. Thank you to our team and shareholders for your support. Yours sincerely, Jan Nelson
Xtract Resources share price data is direct from the London Stock Exchange
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