Xtract Resources Share Discussion Threads

[guyshelby] 23/2/2022 20:32

Posted here previously on subject by thediddymen

>>Firstly XTR should be funding Prospectore through the intercompany account. When Prospectore is sold the intercompany account should then be settled as part of the consideration and that will give XTR the funding to carry on exploration.
&#8232;In my view Prospectore should be divest of any tennements that are not part of the AA arrangement and XTR wish to explore to another wholely owned stautory entity.

;For the disposal process XTR issue shares in specie to all XTR share holders and the acquirer purchases those shares.

;This will have the benefit that there is no disposal of Bushranger (ie no Capital Gain in Australia). The consideration received by shareholders is then a return of capital, avoiding any revenue taxes. UK shareholders will then be responsibkle for capital taxes. They can then use their CGT allowance should the shares be outside an ISA.

XTR should not be retaining any of the consideration for Bushranger, they simply do not have the structure to use the proceeds effectively. All the Bushranger development costs will be returned to XTR meaning that XTR will not be in the market for anymore funding and will be able to carry on exploration.<<


[the diddymen] 23/2/2022 20:27

Arcadian CB is right; the higher the market cap the greater the value of Racecourse post thrid party evaluation.

Just a view but the greater the legal blue water between Racecourse and Ascot, the better XTR's position.

The prospect of a white knight will help but will not materialise unless AA offer is unrealistically low.

Re the return of cash via a dividend - the officers of the company should be shot if they take that high tax route. The capital should be returned in specie as a capital gain.

[arcadian] 23/2/2022 19:50

ZM

There are two parts to your concerns.

1 Pre deal when it won`t matter too much what the share price is in the run up to any deal but to be fair CB in one of his interviews did express a desire for the market cap to be higher presumably he felt it would give him more credibility.

2 After the deal which if it produces assets which are out of line with the share price one assumes that the market will correct that anomaly via the share price because if it doesn`t someone will step in and buy a very cheap company. An offer to buy shares at 50p when the assets per share are £2 would I assume be rejected pending an offer that reflected the true values. The company itself has the option of buying back shares or awarding a special dividend to get rid of the surplus to requirements cash from the deal.

Hope that helps. Others may improve on my reply or debate other issues arising.

[goforgold1] 23/2/2022 19:07

Looks like the de rampers are here in force now . Lol there be here till bed wetters sell to bring it down to 5p then buy back in simple de ramp then re ramp sell repeat

[papillon] 23/2/2022 18:18

XTR has the potential to 5 bag from here in 2021, GuyShelby. Perhaps 10 bag, or even 15 bag? The higher the better as far as I'm concerned. How long is a piece of string? To my mind XTR is currently very, very, undervalued.
You've got to be in it to win it.
I haven't, unfortunately, got deep pockets like many on here as my cash resources are limited, but most of my available cash is invested in XTR.

[zero matrix] 23/2/2022 18:05

Thanks, but I think that you missed the thrust of my original question. As to what happens re returning the proceeds of sale to shareholders, there are msny scenarios for how this could be structured. My guess is there will not be a need for everyone panic selling on a spike on news of a deal which would lead to a very disappointing so collapse, if only for a short while. I hope things are managed, and communicated, better.

[guyshelby] 23/2/2022 17:08

Sorry no, im not one of those people but my own interp of what has been suggested is basically no! You just have to be invested, the more accumulative shares held at the time of sale, the bigger your return will be in form of a dividend payment (and or) to all accounts you have holding shares. The longer this stays low the less you will be paying now to build your stake. Win win.
All xtract shares will be retained by holders after the sale but would expect them to rerate to reflect the final market cap after transfer of assets.
Suggesting a smaller rerate if market cap is much lower than the eventual sale price. There is also the potential the market cap could be driven up beyond the eventual sale price by heavy buying.
Truth be told, not s clue maybe I’m way off but no it will not make any difference at the time where the share price sits, but count on it not being long at these levels when resource estimate is out. Is absurd to think it will be at these levels going into negotiations.

[zero matrix] 23/2/2022 16:18

We are led to believe that XTR does not need to raise any more funds, thanks to previous raises and the income now being generated by its other projects apart from Bushranger. So the share price is not key for this reason.

We are also led to believe that the Australian resource will be ready to be offered for sale within months.

Does anyone have a view on whether the share price matters at all? If for example an agreed sale of Bushranger would value the company at £1 per share (these are figures just quoted as round numbers for ease) I don't believe this would be affected if the share price had reached 20p per share, or 50p even, during the negotiations, or was still languishing around 6p. The offered price will be the offered price based on the agreed value of the resource, not the licence owner's share price. Simple as that.
Can anyone who knows what they are talking about expand on this?

[papillon] 23/2/2022 16:03

Why are you so surprised, goforgold1? Like almost all AIM listed speculative explorers the share price spikes up on a good news RNS, as the buyers pile in and then drifts back down as that enthusiasm wears off and stop losses (as in your case?) are triggered.
You need to gamble and buy before news is issued. However judging the bottom and judging when the next news will be issued is not easy (unless you have inside information!).
Looking at the charts in the header it looks like the next support level that could tempt buyers is around 5.7p, but without an RNS it's possible (probable?) that the share price will drift down to support at 5p before buyers are tempted again? How long is a piece of string? There are better shares to trade than XTR. If you believe in the future potential of Bushranger buy and hold. If you don't then don't bother buying!
PS I was under the impression that day traders concentrated on FTSE100 companies.

[goforgold1] 23/2/2022 15:35

Here comes the fear lol stop loss triggered as well. No volume so mms shake the bed wetters out. Broke 6p as well 5.50p now unless news soon. I mean real news as well got my powder dry to buy more if it falls.

This share is like clock work as well up then down then repeat . all year

[papillon] 23/2/2022 14:47

Seriously Rodney, read the October 2021 company presentation. The link is in the header. Since that presentation XTR have discovered another porphyry on the Bushranger licence area, Ascot, which looks likely to be as good, if not better, than Racecourse for Cu and Ag and even Mo. There is even a chance of a 3rd porphyry.
Then look at the RNS dated 26/1/2022.
If XTR can show that Racecourse is likely to contain 2 million tonnes of Cu then AA (Anglo American) has first refusal on the licence. It has 10 days to make an offer. If CB doesn't consider they have offered enough it goes to an independent valuer.
I hope I've got that correct. TCofMC, TD, and others on this bb are far more clued up than I am. DYOR.

[papillon] 23/2/2022 14:11

"Don't worry, Rodney. This time next year, we'll be millionaires!" 🤣

[rodney101] 23/2/2022 13:33

Would appreciate and quick heads up Thanks

[rodney101] 23/2/2022 13:28

Interesting company Requires research

[goforgold1] 23/2/2022 13:08

Time will tell

[all in eol] 23/2/2022 12:58

Do you feel like you have been left holding the baby gfg?

[the count of monte_cristo] 23/2/2022 11:15

Bushranger is the most beautiful lady at the Lachlan Fold dance:)

[the diddymen] 23/2/2022 08:00

Worth just taking a look in at LSE yesterday. In the morning there was a clip of the CEO of Legacy Minerals who have a tenement in the XTR tenement (number escapes me) to the NW of Racecourse. The clip is very short and alludes to AA being in Rockley. Plenty of reasons for AA to be in Rockley because it sits on that Racecourse Cadia line. Rockley also sits in the 'top left' of XTR's tenements.

Given the time line it would be logical.

[hamidahamida] 23/2/2022 07:49

Agree in grand scheme of things if you get your target of 30p (Good luck) then 2p here or there means nothing CB would want to pull this off as this could be his last big 1 before hangs his bootsDefinitely interested if I can get my target

[the count of monte_cristo] 23/2/2022 03:01

The majors are throwing off so much cash, they don't know what to do with it. Expect strong M & A over the next few years as they look to acquire long life, high quality assets around the globe to replenish and maintain current resources as well as to geographically diversify. Most of Australia's copper mines are set to close come 2030-35, virtually no new large discoveries are being made, the next set of mines need to come on stream very soon. IMHO.

[papillon] 23/2/2022 01:12

Is the XTR share price going back to my lower trend line? Possible. It's gone been back there more than once in the last 6 months. However trends for explorers rarely last long. Needless to say I'm hoping it doesn't drop back to my lower trend line.


free stock charts from uk.advfn.com

[denjon] 22/2/2022 19:56

Empress Royalty update on LSE board mentions progress on Manics.