This page was last reviewed and updated on: 27 September 2018
In April 2018, the Quoted Companies Alliance (QCA) published an updated version of its Code which provides UK small and mid-sized companies with a corporate governance framework that is appropriate for a Company of our size and nature. The Board considers the principles and recommendations contained in the QCA Code are appropriate and have therefore chosen to apply the QCA Code.
The updated 2018 QCA Code has 10 principles that should be applied. Each principle is listed below together with a short explanation of how Xtract applies or otherwise departs from each of the principles.
A downloadable PDF document of our Corporate Governance Report is available here.
Business Model and Strategy
The Board has and continues to pursue a strategy which can which can achieve long term value to its shareholders. The investment framework has been to identify and invest in near-term resources assets that:
•Can be brought into production within 24 months;
•Are near or at surface without major capital expenditure;
•Are on the low end of the cash cost curve and have further upside growth potential;
•A low entry cost and located in favourable mining jurisdictions
The Company to date has focused on precious metals and in particular gold projects but would also consider projects including base metal and as long as any new investments meet the above criteria, whether it be an active or strategic investment. The Company will continue to seek to grow both businesses organically and will seek out further joint ventures and other arrangements that create enhanced value.
Understanding Shareholder Needs and Expectations
The Board is fully committed to developing a good understanding of the needs and expectations of the Company’s shareholder base as well maintaining good communication and having constructive dialogue with its shareholders. There are currently no institutional shareholders with the majority shareholder base being private shareholders. The Company has ongoing relationships with its private shareholders. All shareholders are encouraged to attend the Company’s Annual General Meeting and other shareholder meetings. Investors also have access to current information on the Company though its website, www.xtractresources.com, and via the Executive Chairman, Colin Bird who is available to answer investor relations enquiries.
Considering wider stakeholder and social responsibilities
Long-term success relies upon good relations with different stakeholder group including internal and external. The Board recognises the importance of the Company reliant upon the efforts of the employees of the Company and its contractors, suppliers, regulators and other stakeholders.
The Company’s local subsidiary, Explorator Limitada deals on a regular basis with institutions such as the Ministry of Mines and its subordinate departments, the Ministry of Land and Environmental as well as the Local Government of the District of Manica. The Company is also involved with the local community including projects, which have and will benefit the local community and surrounding areas.
Management have focused on implementing put in place processes and systems to ensure that there is close oversight and contact with its key resources and relationships. The Company has close ongoing relationships with a broad range of its stakeholders and provides them with the opportunity to raise issues and provide feedback to the Company.
In addition to its other roles and responsibilities, the Audit Committee will be focusing on further ensuring that procedures are in place and are being implemented effectively to identify, evaluate and manage the significant risks faced by the Company. The risk assessment matrix below sets out those risks, and identifies their ownership and the controls that are in place. This matrix is updated as changes arise in the nature of risks or the controls that are implemented to mitigate them. The Audit Committee will review and assess the risk matrix and the effectiveness on an annual basis. The following principal risks and controls to mitigate them, have been identified: