Xtract Resources Share Discussion Threads

[jlondon] 05/1/2022 19:31

RFC Ambrian Dec 2021 Report on Copper projects.
They have 65 development projects of which 23 they think has a high chance of 3rd party involvement.

The 23 are listed on the London South East forum [XTR].

The top 5, high for 3rd party invol. are :
Cascabel [Ecuador] 11.6Mt @0.348% cu copper
Viscachiatas [Chile] 7.74mt @0.37% cu copper
No 8:Casino [Canada] 4.89mt @ 0 . 1 2 7 % cu copper [Rio has taken a stake]
No 13: Costa Fuego [Chile] 2.88mt @0.399% cu
No 17: Santa Tomas[Mexico 2.65mt @ 0. 3 2 3 % cu.

From RFC Ambrian, they picked all the projects at 2MT +CONTAINED COPPER. No 18-23 are all in the 2mt+ and from No 12-17 a bit higher than 2Mt [just over].
Average grade: 0.345% cu.
==
XTR has not yet had a MRE etc, hence why not on the list at the moment.

[johnswan193] 05/1/2022 18:52

Better start getting some holes into Ascot.

[arcadian] 05/1/2022 18:49

Thanks to ZOROS1 on the Solgold thread.

This might be of interest although they do not consider XTR big enough for their purpose.



We originally selected 3.0Mt of contained copper as
a cut-off for resource size as we calculated that this
that might allow the construction of an 80-100kt/y
operation for a 20-year mine life, depending on a
number of geologic and economic factors. We
believe that this is the smallest size of mine that
may interest Tier 1 or Tier 2 copper producers to
acquire or construct.

[arcadian] 05/1/2022 18:20

Is there a cut off to the AA option ? Haven`t seen or heard of one.

[picardy] 05/1/2022 16:25

Copper should be much higher with the situation in Kazakhstan unravelling. Makes you realise how blessed are we that the star asset is in a safe jurisdiction.

[papillon] 05/1/2022 16:11

👍 An excellent answer, TCofMC, to John's question.

[the count of monte_cristo] 05/1/2022 15:49

Hi John,

1 - You can compare two takeovers of large copper deposits from the last decade to evaluate the prices paid for their resources and then come up with some pricing scenarios.





2 - Grade is king, but globally all copper grades are declining and these new cut-off grades will become the standard. If you look at SOLG and Caravel they have used the same.

I think people still need to realise that hardly any large copper porphyries deposits have been found in the last decade and their have been even fewer transactions. Therefore valuing such things is difficult, personally I think we need to use the Hudbay deal as a good case study noting that this was back in 2014 and the pricing scenario, forecasts for copper prices and need for resources was nowhere near as strong as it is now. The M & A hasn't even started yet, that's going to really heat up over the next few years with ever esclating prices paid for in ground resources.

[johnswan193] 05/1/2022 14:29

Couple of questions:

1 - Any useful references for indication of a range of values that Racecourse could be sold for assuming the 2MT is achieved? Assume 2MT and without Ascot.

2 - Would the 0.15% cut off reduce the level of interest from AA and/or other parties? Is this materially below the cut off grade used for other comparable transactions?

[papillon] 05/1/2022 13:45

O/T.
TCofMC. I had a quick look at DEC. Never heard of it before. Looks interesting.
My biggest holdings are still in gas. KIST and IOG. They've done me proud. Also done well on SQZ. Even I get lucky now and again! 🤣

[papillon] 05/1/2022 13:36

👍 I'm not in your league, TCofMC. You're a Premiership level investor, whilst I'm not even at Championship, league 1, or even league 2, levels. I'm strictly at non league level! 🤣 🤣

[arcadian] 05/1/2022 13:32

Count

II widened their offerings and Barclays had to follow. There will obviously be forex fees if you are buying a firm listed in the USA. I find Barclay`s stance on a London listing very strange.

[the count of monte_cristo] 05/1/2022 13:10

Papillon, me too, picked up a further 140,000 odd today. News is due soon and I think it will be good.

[the count of monte_cristo] 05/1/2022 13:09

Hello Arcadian, do you mean Diversified Energy Company PLC (DEC)? That's good news as I would like to access that divi. I will try and buy some this week or next week via Barclays. In my mind, Barclays should allow the buying and selling of any stock listed on the LSE, otherwise what's the point:)

[arcadian] 05/1/2022 12:41

OT

Count

I believe that Barclays now facilitate the buying of US shares-- re Polym.

[papillon] 05/1/2022 12:24

Had another small, 25k shares, top up. About 25 minutes ago. Got them at 5.6p just moments before the asking price increased. How's that for luck? 🤣

[the count of monte_cristo] 05/1/2022 08:25

I would like to see some drilling at Footrot before any discussions with AA take place.

[guyshelby] 05/1/2022 08:12

Thank you for your interp TD that sounds about right to me. Will appease many holders as question has been asked a few times on LSE.
Will ref your post over there

[the diddymen] 05/1/2022 07:15

On the issue of the sale of Racecourse, Racecourse is owned by Projectore, a subsidiary of Xtract Resources. Unless I am missing something the way to return the cash to shareholders would be by issue of Projectore shares in specie to existing shareholders of Xtract. The acquirer then purchases the shares from Xtract shareholders. In effect shareholders will see the net transaction which is a cheque.

That means that theree was no disposal of Racecourse, which means no CGT or Australian equivalent. While in the UK the transaction will be treated as a capital rather than income item, or in other words it will be treated as a capital gain. Shareholders will still retain their shares in Xtract which means that there will need to be a capital apportionment of cost to determine the capital gain if the shares are held outside an ISA.

Just need to get to that start line!

[papillon] 05/1/2022 01:37

The way the 10 & 20 day EMA's have risen above the 50 day EMA is reminiscent of back in September when the share price went on a 50% rise in around 5-6 weeks until the end of October. I added twice today (sold some of my gas shares). Both the fundamentals and chart look very bullish. Let's hope the share price can defeat the sellers at 6p and motor on up to circa 8p in the short term.


free stock charts from uk.advfn.com

[guyshelby] 04/1/2022 23:35

To be fair when Colin said about hanging on to it as long as possible he was responding to why he would not consider a JV.
Then, no raise in January he was replying to a claim on the bb that “come January there will be a raise!” Doesn’t mean there could be one in February or March. There is 600k still in exploration budget, the drill team have taken a well earned Christmas break, giving the team time to plan the remaining holes. Maybe one in NW and few to SSE to close off racecourse. Then however many more to outline Ascot. Or vice versa. That is it, any more and will be impossible to stick to timeframe if assays are to be returned in time to rework the conceptual pit and resource model by June to start negotiations. He has said, “there plenty in the treasury for what we need to do”
Has to say never say never as you never say never in this business.

[zero matrix] 04/1/2022 23:27

So there is a deal to be done. Decades of production of an increasingly scarce and increasingly needed resource. We are all obsessing about whether Racecourse can offer 2Mt, but we've just learnt of Ascot, and maybe another porphyry and maybe more. Multiplying the numbers and assessing the value of this asset as a saleable resource, my value figures are much more bullish than I have read anywhere. I'm happy with them, or even a tenth of them.

[zero matrix] 04/1/2022 23:21

I would suggest people get real and stop trying to be experts in possession of few facts. AA are all over this. As are the hopefuls waiting to swoop if AA squander their first mover advantage. Those that need to know will have found a way to do their homework. Don't forget that if AA's first offer is not good enough it goes to independent valuation. AA gets the chance to up the offer then if required. Ultimately XTR doesn't have to accept. Poker in all sides.

[zero matrix] 04/1/2022 23:16

2Mt is a very round figure and if this is interesting to AA to the extent it is the level at which they would look at a deal, then so will be 1.7Mt where circumstances show it is a surface prospect, not an underground mine. And there is further resource that can be accessed from a central processing hub (vastly reduced capex and infrastructure to serve wider activity).

[zero matrix] 04/1/2022 23:09

Who here feels that Racecourse has not, in the highly informed of those examining it, already demonstrated this much touted figure of 2Mt of contained copper? Whatever they believe, and will say in private conversation (I feel I have heard this personally) they require comprehensive and independently verified results of thorough testing (drilling etc) before they announce this belief formally.