Alluvial processing by Huafei to provide massive boost for XTR revenue stream Thoroughly enjoyed reading yesterdays RNS giving Xtract Resources further income from alluvial processing at Manica by it’s proven sub contractor Sino ( renamed Huafei Gold Resources Co. for some reason ) . All indications suggesting at least 2 alluvial processing plants are on site and as was proved last wet season which was the wettest for many a year Sino have the experience to produce no matter what the weathers doing . We also know hard rock processing by Omnia ( other than fair brides ) should start Q1 2019 leading me back to Sino starting with a small piece of the pie to taking all the alluvials . Hence as I’ve suggested before once Q1 2019 is proved up by Omnia whether it be the first month or the last of the quarter it wouldn’t surprise me to read an RNS stating Omnia have agreed terms to develop fair brides . So why did I let my 350k shares 3rd trading tranche go that I’d settled on keeping . The bashers who spend 24 x 7 posting negatives about Xtract Resources on an un-secure chat site led me to believe ( MM’s ) still have shares to close shorts opened prior to the last placing of over a year ago . Yep , ( MM’s ) have the advantage of knowing when the trend changes , direction of share price that is . Since the fundamental value created by Mr.Colin Bird is way above where the Market Makers have current Market Cap but then they’d have you believe Mr.Colin Bird controls that even though his last share purchases were done at 2.85p /share . Now lets see the MM’s sells go through like they have so many times since the 2.85p /share placing closing shorts before buying my 350k shares back … aye , making money share trading isn’t always good it’s understanding how to make it that counts .
RNS 16.01.19 - Manica Gold Alluvial Mining Contractor Agreement But yesterday’s gains all lost this morning. People shouting for news then sell when it comes! TP
RNS 16.01.19 - Manica Gold Alluvial Mining Contractor Agreement Well it’s taken a while but definitely the right choice. Onwards and upwards TP
RNS 16.01.19 - Manica Gold Alluvial Mining Contractor Agreement Xtract Resources Plc (“Xtract” or the “Company”) Manica Gold Alluvial Mining Contractor Agreement The Board of Xtract Resources Plc (“Xtract” or the “Company”) is pleased to announce that the Company’s wholly-owned Mozambican subsidiary, Explorator Limitada (“Explorator”) has concluded an additional mining contractor agreement (“Mining Contractor Agreement” or “Agreement”) with Huafei Gold Resources Co Limitada (formerly Sino Minerals Investment Company Limited) (“Contract Miner”) for the exploitation of alluvial gold deposits at Manica at its Manica mining concession in Mozambique. Highlights · Established and experienced current alluvial mining contractor now appointed to mine the alluvials of the entire concession · An entry fee to be paid to the Company: Initial US$150,000 to be paid on the date of the Agreement, and the remaining US$200,000 to be recovered through future alluvial gold production · Agreement provides for Explorator to be entitled to retain net percentage of the gold mined (after settlement by Explorator of the Mining Production Tax) of 22% until the entry fee has been settled in full, and 20% thereafter · Initial contract period of 10 years or the depletion of alluvials, with an option to extend for a further 5 years if the alluvials are not yet depleted Colin Bird, Executive Chairman said: “A number of contractors have expressed interest in mining the other areas of the alluvials in the Manica concession. Huafei Gold Resources was chosen because of their willingness to pay an upfront payment and demonstrated consistency of operation with their existing contract. They provided extra equipment into the concession and we look forward to increased production over the coming months and on completion of the rainy season.” Contract Mining Agreement The Company’s wholly-owned Mozambican subsidiary, Explorator, has today appointed the Contract Miner who will have the exclusive right to mine the entire unconsolidated alluvial deposits on the Permitted Area of the Mining Concession area. The Agreement will endure for a period of 10 years or the depletion of alluvials, with the option to extend for a further period of 5 years, if the alluvials have not depleted, by the Contract Miner as well as rights of early termination either by Explorator or the Contract Miner. The Agreement includes performance targets whereby the Contract Miner from 1 February 2019 will be required to have 2 fully operational plants with a minimum throughput of 200 tonnes per hour on a consistent 24 hours per day basis. Explorator will be responsible for recording the gold concentrate produced from the permitted area on a daily basis. The Contractor will be responsible for the smelting of the gold concentrate and delivery of gold dore bars. Explorator will be responsible for all statutory and legal requirements regarding the license and for payment of the Mining Production Tax of 6%. Consideration and Payments The Agreement is subject to the condition precedent that the Contractor pays a total entry fee of US$350,000 to Explorator (“Entry Fee”). An initial US$150,000 is to be paid on or before the date signing of the Agreement, and the remaining US$200,000 to be recovered through future alluvial gold production. In consideration for the appointment of the Mining Contractor, Explorator will initially pay the Mining Contractor a net fee of 72% of gold produced by the Mining Contractor and Explorator will therefore initially retain 28% of the sales value of all gold produced (equivalent to 22% after payment by Explorator of the applicable Mining Production Tax of 6%) and will continue with the above fee arrangement until the Entry Fee has been settled in full. Thereafter, Explorator will pay the Mining Contractor a fee of 74% of gold produced by the Mining Contractor and Explorator will therefore retain 26% of the sales value of all gold produced, equivalent to 20% after payment by Explorator of the applicable Mining Production Tax of 6% (the “Net Sales Balance”). The Net Sales Balance and the Entry Fee will be apportioned between Xtract and Nexus on the basis of the agreed the terms of the amended collaboration agreement for the exploitation of alluvial gold deposits at Manica (“Collaboration Agreement”) as announced on 30 October 2018. Other The Contract Miner will be responsible and liable for any rehabilitation of the mining concession to the extent mined by the Contract Miner as required under the relevant mining laws. The Agreement contains an indemnity from the Mining Contractor to Explorator and further customary terms and conditions (including termination). 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. END - - - A_D
Usual Market Maker , movement prior to news As my previous posts confirms I bought my 3rd top up trading tranche of 350k shares 8 days ago after noticing a surge in sell volume . Yep , shorts closed by MM’s using placement shares from the last placing of over a year ago to do so ( my opinion only but fairly easy to spot ) . My theory proved right even if a couple more days of heavy selling happened driving the SP down to 0.60p /share to buy . Was I disappointed I didn’t get the bottom … nay … I very rarely get the bottom since to buy 350k shares at the bottom is to risky for me I’d rather be in safe and secure . After the assumed shorts were closed the Sp reversed trend and ended the week with a real time ASK of 0.78p /share to buy , driven down towards end of trading from 0.80p /share by some profit takers . They may even be traders hopeful of getting in on any Market Maker tree shake early Monday / Tuesday prior to news … usual MM trait but then to buy in volume on such a whim is equally as hard to do as buy at bottom . We’ve seen a slight bounce over last couple days but the MM’s laid their short , in my personal opinion , on when the SP was above 3p /share , prior to the placing shares of 2.85p /share no doubt . They do tend to have the edge on private investors after all . So what’s not to like with my third trading tranche top up … might end up buying another tranche if I get the chance but with news due , cash in the bank , gold alluvials stored at Manica in the form of dorey bars … it’s hardly a gamble buying at these prices since Xtract Resources owns the Manica prospect outright and has Sino working in all weathers with consistently increasing results . Not forgetting Omnia start up date for hard rock processing other than fair brides is due to start this month .
Usual Market Maker , movement prior to news Got me 350k shares back at 0.64p /share for my 3 rd trading tranche . As per usual increased selling prior to news of which Xtract Resources expects on many fronts . With 1st quarter 2019 results from Sino alluvial processing with our renegotiated profit split up by 20% for XTR . I’d say it’s a good time to top up . Been the usual increased de-ramping on an un-secure chat site , that’s also usual around news time hence it’s pointless guessing but hard rock processing by Omnia is due to start this month , wonder if a re-negotiated agreement will include the fair brides open pit gold mine too … aye , just happy to buy at such a low Market Cap £2.2 million into a debt free , asset owning , totally de-risked gold miner … Not forgetting Market Makers control the Market Cap through the share price , Mr.Bird controls the fundamentals of which in my mind are worth multiples of current Market cap .
Observation Xtract Resources has no debt , owns the Manica prospect in Mozambique , has a proven alluvial sub-contractor , Sino able to work in the wettest of wet seasons . Has a renegotiated 50% - 50% profits split with Nexus from alluvial sub-contractors of which we await news of more to sign up . Even have a renegotiated agreement stating " Any Entry Fees payable by any Mining Contractor to Explorator after 31 May 2018 will now be divided equally between the Company and Nexus " . Even has money in the bank with exceptionally low overheads to boot . So why do the Market Makers value the company at approx £2.8 million . Might be something to do with our Hard Rock collaboration agreement with Omina and its 40kt per month free gold processing plant being completed, with commissioning planned in November 2018 . That’s got them short or still holding shares from the last placement done on 14th Nov 2017 at 2.85p /share . Nonetheless not bothered by ( MM ) antics in fact quite happy to buy the 350,000 shares I recently sold at 0.85p/share with a tidy 24% profit from the last rinse and repeat . Aye , be nice to get them back but that’ll be below my last trading tranche purchase price of 0.68p /share if I’m lucky … … I did notice some did better than me on the last rinse and repeat , buying at 0.64p /share hence bravo to you that did . On the other hand news could arrive at any moment with news on many fronts due that could re-rate the share price leaving me left holding only two trading tranches and a long term hold position of a considerable amount of shares . Nice to see the bashers on un secured chat sites increasing their activity but then if you’ve followed the share price down since the last placement , done at 2.85p /share , of over a year ago then you’d have noticed those placement shares working their way into market on a drip drip basis .
Moz Gold terms Agreement (entered into on 6 March 2018) theprior They sure did . If you re-read " Strategic investment in Manica Alluvial operator " RNS Number : 4956Z , 15th December 2017 … you’ll see how I come to this agreement . This line from that RNS says it all . The Borrower will provide Xtract with security over the processing plant and the use of proceeds will be solely for working capital purposes for the alluvial operations.
Moz Gold terms Agreement (entered into on 6 March 2018) I was under the impression that Moz forfeited the processing plant in lieu of monies owed? And, in any case, have Moz any assets to be seized? I thought they were defunct. TP
Moz Gold terms Agreement (entered into on 6 March 2018) Appears in the last RNS . " Alluvial Collaboration Agreement Amended " a reference was made to the outstanding debt still owed by Moz Gold . The parties have further agreed that the Company and Explorator will take all necessary steps to recover amounts owed by Moz Gold under the terms of the Moz Gold Agreement (entered into on 6 March 2018), and that any amounts recovered will be divided between the parties on the basis of the June Agreement, being 60% payable to Nexus and 40% to the Company. If you refer to the 6th March 2018 RNS " Alluvial Mining Contractor New Agreement and Update " you’ll find this paragraph : To date Moz Gold has mined a total of 98,784 tonnes run-of-mine and has not met the agreed production targets set out in the June Agreement, and accordingly there are accrued penalties payable by Moz Gold for non-performance. Â As at 1 March 2018, Moz Gold owes in aggregate approximately US$1.5 million to Explorator, comprising US$1.3 million in respect of performance penalties, and a further US$0.2 million in respect of accrued but unpaid run-of-mine payments under the June Agreement (the “Moz Gold Indebtedness”). Payments of the Moz Gold Indebtedness are attributable as to 40% to Xtract and 60% to Nexus Capital Limited (“Nexus”) under the alluvial collaboration agreement between Nexus and Xtract. Hence it’s good news for Xtract Resources since this debt has been overlooked by so many but with Nexus being owed the most it’s obviously who’ll be chasing the hardest for the amounts owed by Moz Gold .
Institutional Investors! I thought teacher read ok ??? … lol
Institutional Investors! theprior I sold my latest trading , tranche purchase from 27 Oct of 350k shares bought at 0.6794p / share on 31st Oct sold at 0.851p /share . Making a cool £576 / 24% profit in just a few days after it overlapped 2 further trading tranches that are in profit but holding these for more news before letting them go . Yep , I’m lucky I can play with these trading tranches since my long term hold shares are under water stuck at around the 1.67p /share mark in an ISA account . My take on the 25% increase in revenue from the Alluvial contract with Sino is until this was agreed with Nexus / Xtract / Sino , no further alluvial sub contractors would be employed by Mr.Colin Bird . The man himself being the stumbling block not the lack of alluvial operators wanting a chance to processing the alluvials . Now the alluvial revenue profits split has been agreed I feel news is imminent with just the signing on the dotted line by the three parties and other alluvial sub contractors needed to take place before an announcement . Remembering our recent RNS though only just announced includes a period of time several months back , I did several dummy buy trades of 350k shares after letting my last trading tranche go at 0.851p /share and though I made a tidy profit in onl a few days realise the Market Makers ( MM’s ) are walking the SP up rather than allow traders to profit . Final minutes of Friday’s trading I was being quoted 0.87p /share to buy my 350k shares back but that’s great news for my long term hold shares in an ISA account hence not to worried . I did realise not many Pi’s sold after the 24% gap up last week hence look forward to another fantastic week next week caused more by expectation now rather than hope . Whether it be an " update " from the Omina processing plant commissioning to be used to process hard rock from Manica other than fair brides area or another alluvial contractor signed up it’s all good news for us . As for the gap ups they tend to feel like spikes but I’m only selling trading tranches into them hence I might end up with a smaller holding as we become more established as a gold producing miner but then the Market cap will be multiples of where it is now so I’m not bothered just happy to see the hard work done behind the scenes appear even if it’s real effect starts from months earlier . I must also thank the constant negative postings done on a lesser Bulletin Board for last weeks profit . Yep , newbies along with the un-researched trader probably got shaken out by that constant negativity with no news for months but hey … that’s what happens with AIM shares . Be nice to read their positive posts in coming months whether under different usernames or not always a pleasure to read their posts …
Institutional Investors! That’s “my latest tranche” ! (That’ll teach me to proof read, lol) TP
Institutional Investors! Still here R94 after a brief departure earlier in the year. Now on a fresh start a few weeks ago and straight back into loss after recent market falls. Today’s news is interesting and reaction a little delayed due, I guess, to the late release of the RNS. But now +15% which is good, but a shame it’s from such a low base ! Still, at least my latest teacher is in profit, but I’m hanging on to it for now as there’s more good news to come as we move into 2019. If I live long enough I might still see an improved bank balance courtesy of XTR
Institutional Investors! Bonds and Rates markets a different beast now. Strategies being adapted in 2018. Love to know how…