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Share Name Share Symbol Market Type Share ISIN Share Description
Xtract Resources Plc LSE:XTR London Ordinary Share GB00BYSX2795 ORD 0.02P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.025 -2.13% 1.15 1.10 1.20 1.175 1.15 1.175 1,650,574 13:48:21
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 1.4 -1.1 -0.3 - 5

Xtract Resources plc Manica Alluvial Gold & Corporate Update

27/05/2020 7:00am

UK Regulatory (RNS & others)


Xtract Resources (LSE:XTR)
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From May 2020 to Jul 2020

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TIDMXTR

RNS Number : 9972N

Xtract Resources plc

27 May 2020

For immediate release

27 May 2020

Xtract Resources Plc

("Xtract" or the "Company")

Manica Alluvial Gold & Corporate Update

The Board of Xtract Resources Plc ("Xtract" or the "Company") announces the preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month period ended 31 March 2020 (the "Period").

Highlights

-- Total alluvial mining contractor gold production of 14.52 Kg for the quarter (equivalent to approximately 467 ounces)

   --    Total of 4.06 Kg (equivalent to approximately 131 ounces) attributable to Explorator 

-- Combined attributable revenue to Explorator from gold sales and other income for the Period amounted to US$508,573

-- Mining on the adjacent licence to be contracted to another Chinese group based on similar terms to the agreements currently in place

-- Discussions in place with a group to mine the Guy Fawkes and Boa Esperanca free milling small hard rock deposits

   --    Manica hard rock continues to progress and all aspects of operations advancing satisfactorily 

Colin Bird, Executive Chairman said : " The results are a little disappointing for the first quarter based on the rainy season, but particularly the effect of the Coronavirus on spare parts delivery from China. We continue to experience low grade together with high overburden stripping. The spare parts arrived 2 weeks ago, and operations are already showing a significant improvement, despite tough operating conditions.

We intend over the next month to commence a further contract with another Chinese group on an adjacent licence. The agreement with the group will be similar to existing agreements in place.

We are actively engaging with another group on working the Guy Fawkes and Boa Esperanca small hard rock deposits. These deposits have indicated free milling gold at good grades. Preparations are underway to ship major components for the Fairbride gold project, once border restrictions are lifted, which is expected the middle to late June 2020. The equipment will be accompanied by the necessary lifting equipment for installation."

Production summary

Preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month periods ended 31 March 2020, 31 December 2019, 30 September 2019, and 30 June 2019 are set out in the table below. In addition to the information included in the table, the table below provides a further breakdown of costs between operational costs, production tax and land resettlement costs. The Company currently expects that at current rates of activity, the alluvial mining contractors will conclude their operations during the latter part of the current year. The Company's current focus is to progress the Manica hard rock operations.

 
                                 1st Quarter    4th Quarter   3(rd) Quarter   2(nd) Quarter 
                                       ended          ended           ended           ended 
                                    31 March    31 December    30 September         30 June 
                                        2020           2019            2019            2019 
 Production and Sales 
  : 
                                ------------  -------------  --------------  -------------- 
 Total contractor alluvial 
  gold production (equivalent 
  ounces) (Note 4)                       467          1,045             994           1,088 
                                ------------  -------------  --------------  -------------- 
 Explorator share of 
  gold produced (equivalent 
  ounces)                                131            293             278             305 
                                ------------  -------------  --------------  -------------- 
 Value of Explorator              US$208,396     US$438,119      US$409,560      US$404,251 
  share of gold produced 
  (value in US$)(Note 
  4) 
                                ------------  -------------  --------------  -------------- 
 Explorator share of 
  gold sold (equivalent 
  ounces)                                354            163             337             533 
                                ------------  -------------  --------------  -------------- 
 Explorator attributable         US$508,573      US$241,284      US$467,683      US$643,568 
  revenue from gold sales 
                                ------------  -------------  --------------  -------------- 
 Explorator share of             US$508,573      US$120,642      US$233,482      US$321,784 
  Explorator attributable 
  revenue from gold sales 
  (Note 1) 
                                ------------  -------------  --------------  -------------- 
 Direct Operational 
  Production Costs: 
                                ------------  -------------  --------------  -------------- 
 Explorator total direct         US$147,575      US$173,419      US$140,477      US$125,666 
  alluvial operational 
  production costs (Note 
  2) 
                                ------------  -------------  --------------  -------------- 
 Xtract share of Explorator      US$147,575      US$110,090       US$70,238       US$62,833 
  alluvial direct alluvial 
  operational production 
  costs ( Note 2) 
                                ------------  -------------  --------------  -------------- 
 Total Costs: 
                                ------------  -------------  --------------  -------------- 
 Explorator total direct         US$175,982      US$239,470      US$231,462      US$199,595 
  alluvial production 
  costs (Note 3) 
                                ------------  -------------  --------------  -------------- 
 Cost per ounce of gold           US$1,346           US$818          US$832          US$655 
  produced 
                                ------------  -------------  --------------  -------------- 
 Xtract share of Explorator      US$175,982      US$148,960      US$115,731       US$99,797 
  alluvial direct alluvial 
  production costs ( 
  Note 3) 
                                ------------  -------------  --------------  -------------- 
 

Note 1: Under the Collaboration Agreement between Explorator and Nexus Capital Limited (previously Mineral Technologies International Limited, "Nexus") as previously announced on 28 October 2018 Xtract's net share of Explorator's gold revenue and costs was 50%. On 12 December 2019, the Company announced that the Collaboration Agreement had been terminated by Nexus (as explained further below) with an effective date of 2 December 2019, following which Explorator's net share of gold revenue and costs is 100%.

Note 2: Direct operational production costs include and not limited to Explorator salaries, rent, vehicles expenses and utilities.

Note 3: Total costs comprises direct operational production costs plus total Production Tax (6% of the value of total production which varies according to the level of production) and Land Resettlement Costs as detailed below:

 
                     1st Quarter    4th Quarter     3rd Quarter   2nd Quarter 
                           ended          ended           ended         ended 
                        31 March    31 December    30 September       30 June 
                            2020           2019            2019          2019 
------------------ 
 Production Tax        US$16,109      US$42,066       US$64,492     US$67,564 
 Land resettlement     US$12,297      US$23,985      US$26,494,      US$6,365 
  costs 
                    ------------  -------------  --------------  ------------ 
 

Note 4: Calculation based on the number of ounces produced during each month of the quarter multiplied by

the closing month end spot rate.

Note 5: Presence of gold in alluvial deposits is unpredictable and therefore operational results will vary month-to-month.

Further details are available from the Company's website which details the company's project portfolio as well as a copy of this announcement: www.xtractresources.com

This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014 on market abuse. The person who arranged for the release of this announcement on behalf of the Company was Joel Silberstein, Director.

Enquiries :

 
 Xtract Resources Plc         Colin Bird,           +44 (0)20 3416 6471 
                               Executive Chairman    www.xtractresources.com 
 Beaumont Cornish Limited     Roland Cornish        +44 (0)207628 3369 
  Nominated Adviser and        Michael Cornish       www.beaumontcornish.co.uk 
  Joint Broker                 Felicity Geidt 
 
   Novum Securities Limited     Colin Rowbury         +44 (0) 207 399 9427 
   Joint Broker                                       www.novumsecurities.com 
 
 
 
 
 

ENDS

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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May 27, 2020 02:00 ET (06:00 GMT)

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