Manica Alluvial Gold & Corporate Update

RNS Number : 9076V
Xtract Resources plc

12 August 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 30 June 2020 (the “Period”).

Highlights

  • Total alluvial mining contractor gold production of 17.59 Kg for the quarter (equivalent to approximately 566 ounces)
  • Total of 5.65 Kg (equivalent to approximately 158 ounces) attributable to Explorator
  • Combined attributable revenue to Explorator from gold sales and other income for the Period amounted to US$261,679


Colin Bird, Executive Chairman said: “The operating results over the year have been fairly consistent, reflecting difficult operating conditions. During the current quarter we have seen a reduction in overall costs and once again operating income over expenditure. We anticipate a modest increase in production during the third quarter, which should also result in an improved financial performance with an increasing gold price. Negotiations to introduce further mining and processing for both alluvial and hard rock production are progressing. and we look forward to updating our shareholders in due course.”

 

Production summary

Preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month periods ended 30 June 2020, 31 March 2020, 31 December 2019 and 30 September 2019, and 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 now expects that at current rates of activity, the alluvial mining contractors  are likely to continue their operations into next year. The Company’s current focus is to progress the Manica hard rock operations.


 

2nd Quarter

 ended

30 June

 2020

1st Quarter

 ended

31 March

 2020

4th Quarter

 ended

31 December 2019

3rd Quarter

 ended

30 September 2019

Production and Sales:

Total contractor alluvial gold production (equivalent ounces) (Note 4)

566

467

1,045

994

Explorator share of gold produced (equivalent ounces)

158

131

293

278

Value of Explorator share of gold produced (value in US$)(Note 4)

US$274,959

US$208,396

US$438,119

US$409,560

Explorator share of gold sold (equivalent ounces)

 

162

354

163

337

Explorator attributable revenue from gold sales

US$261,679

US$508,573

US$241,284

US$467,683

Explorator share of Explorator attributable revenue from gold sales (Note 1)

US$261,679

US$508,573

US$120,642

US$233,482

Direct Operational Production Costs:

Explorator total direct alluvial operational production costs (Note 2)

 

US$75,158

US$147,575

US$173,419

US$140,477

Xtract share of Explorator alluvial direct alluvial operational production costs (Note 2)

 

US$75,158

US$147,575

US$110,090

US$70,238

Total Costs:

Explorator total direct alluvial production costs (Note 3)

 

US$109,898

US$175,982

US$239,470

    US$231,462

Cost per ounce of gold produced

US$694

US$1,346

US$818

US$832

Xtract share of Explorator alluvial direct alluvial production costs (Note 3)

US$109,898

 

US$175,982

 

US$148,960

 

US$115,731

 

 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:

                 

2nd Quarter ended

 30 June  2020

1st Quarter

ended

 31 March

 2020

4th Quarter

ended

31 December 

 2019

3rd Quarter

 ended

30 September 

2019

Production Tax

US$18,854

US$16,109

US$42,066

US$64,492

Land resettlement costs

US$15,887

US$12,297

US$23,985

US$26,494

 

 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,

Executive Chairman

 

+44 (0)20 3416 6471

www.xtractresources.com

Beaumont Cornish Limited

Nominated Adviser and Joint Broker

Roland Cornish

Michael Cornish

Felicity Geidt

+44 (0)207628 3369

www.beaumontcornish.co.uk

 

Novum Securities Limited

Joint Broker                  

 

Colin Rowbury

 

+44 (0)207 399 9427

www.novumsecurities.com  

   

 

ENDS

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