REG - Xtract Resources plc - Half-year Report
29/09/2025 14:30
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RNS Number : 2575B Xtract Resources plc 29 September 2025
For immediate release
29 September 2025
Xtract Resources Plc
("Xtract" or "the Company")
Unaudited Interim Results for the six months ended 30 June 2025
Xtract Resources Plc (AIM: XTR), the exploration and development company with
projects in Zambia, Morocco and Australia, announces its unaudited interim
results for the six months ended 30 June 2025 ("Period").
Highlights
Operational
· A Phase 1 drill programme completed at the Silverking Cu-Ag
project in Zambia. Results received indicate a significant extension of the
high-grade mineralisation, tripling the known surface expression to over 260m
strike length. Key intercepts from the Silverking breccia pipe include:
o 24.1m at 5.99% Cu and 40.2 g/t Ag from 111.0m in borehole SKIDD010
o 29.70m at 4.15% Cu and 42.9 g/t Ag from 93.0m in borehole SKIDD003
o 54.1 m at 3.18% Cu and 40.3 g/t Ag from 56.9m in borehole SKIDD002
· The drilling data is expected to support the development of an
in-house, non-code compliant mineral resource estimate for Silverking, that
together with a metallurgical study aimed at evaluating the lower-grade
mineralised halo will inform potential mine planning and future mine economics
· A ground VTEM survey identified a second mineralised structure
sub-parallel to the main Silverking orebody. Further drilling is planned
following a 9m intercept at 4.68% Cu and 38.67 g/t Ag from 228m in borehole
SKIDD018
· Additional targets on the Silverking project include the Kopje
prospect, where multiple structures intersecting a steep dolomitic hill
yielded 4.3m at 2.55% Cu and 30.40 g/t Ag in a surface channel sample. Further
potential has been identified at the Worm prospect where a 2km long sinuous
structure may represent an extension of the regional structure associated with
the nearby Kitumba Mine (27.9 Mt @ 2.2% Cu). Ground VTEM geophysical and
geochemical studies are ongoing to define potential drill targets
· Initial lithological drilling at the Western Foreland project has
confirmed the presence of prospective stratigraphic units that have the
potential to host Kamoa-Kakula-style high-grade copper mineralisation. These
units will be further explored via the use of geophysical surveys and a
follow-up Phase 1 drilling campaign
· Reconnaissance geochemical work has also identified eight copper
stream-sediment anomalies within the External Fold & Thrust Belt of the
Western Foreland project. These will be the focus of Phase 2 exploration
activities
· Xtract have acquired 80% of Moroccan based mineral development
company Wildstone SARL with the intention of developing a near-term,
small-scale, near-term antinomy operation. Xtract will manage the exploration
and development of the project and meet an expenditure commitment of not less
than US$900,000 over an initial 3-year period
· Wildstone SARL hold the exploration and extraction rights for
copper, silver, and antinomy across 20 non-contiguous licences in Central
Morocco which boast the potential for the rapid development towards a
small-scale mining operation
· The company also acquired dump material from various sites in the
Zambian Copperbelt, valued at US$1.15 per tonne, for a total investment of
US$300,000, representing an attractive investment for the company
Financial
· Net loss of £1.17m (H1 2024: Loss of £0.16m)
· Administration & operating expenses £0.78m (H1 2024:
£0.82m)
· Cash of £0.94m (FY 2024: £2.17m)
· Total assets of £17.58m (FY 2024: £19.21m)
Operational Overview
During the reporting period, the focus was on evaluating prospective mining
opportunities at the advanced Silverking Cu-Ag Iron-Oxide-Copper-Gold project.
A phase 1 drilling programme completed on the licence delivered highly
encouraging results, more than tripling the surface expression of the
high-grade mineralized core at the main Silverking orebody. Ongoing work
includes the assessment of the broader potential of the Silverking project,
including satellite target evaluations and metallurgical studies on the
lower-grade mineralised halo surrounding the main Silverking breccia pipe. The
aim is to gather an early indication of the viability of any future mining
operations.
At the Western Foreland project, continued exploration has confirmed the
presence of promising lithologies that are known to host the world-class
Kakula-Kamoa deposit, located along-strike to the northeast in the Western
Foreland mineral district. The focus for the upcoming season includes
identifying drill-ready targets and refining several near-surface geochemical
anomalies identified within the Western Foreland and Fold and Thrust Belt
domains.
A strategic shift towards identifying a future copper operation has seen
Xtract focus on increasing its land position in central and northern Africa,
using funds raised from the sale of its interest in the Manica Gold Mine in
Mozambique. Several acquisitions have been agreed, including an 80% investment
in Wildstone SARL, a Moroccan based mineral exploration and development
company with rights to copper, silver and antinomy assets in central Morocco.
The Wildstone joint venture holds strong potential to progress quickly toward
a small-scale operation.
Further expansion efforts in Zambia include a collaboration agreement with
Chilibwe Mining Ltd, covering mining licence 22118-HQ-LEL, situated
along-strike from the operating Mufulira Mine. Additionally, the company has
invested US$300,000 in acquiring dump material across the Zambian Copperbelt,
valued at US$1.15 per tonne.
Zambia
Silverking Cu - Ag Project, Mumba District, Zambia
A Phase 1 diamond drilling programme was completed at Silverking during the
reporting period. The main aims of the drilling were to assess the continuity
of the main Silverking orebody at surface and at depth, indicate the potential
scale of wall-rock alteration assemblages and any potential lower-grade
mineralised envelopes surrounding the main breccia pipe body, and test
recently discovered satellite targets.
The results returned from the drilling have so far tripled the surface
expression of the high-grade copper and silver mineralisation to over 260m and
include consistent returns of mineralisation over downhole intervals of 25m.
The results from the drilling are available in Table 1, with the best results
summarized below.
· SKIDD010: 24.1m at 5.99% Cu and 40.2 g/t Ag from 111.0m
· SKIDD003: 29.70m at 4.15% Cu and 42.9 g/t Ag from 93.0m
· SKIDD002: 54.1 m at 3.18% Cu and 40.3 g/t Ag from 56.9m
· SKIDD012: 10.1m at 4.09% Cu and 15.5 g/t Ag from 88.9m
· SKIDD018: 9m at 4.68% Cu and 38.67 g/t Ag from 228m
Sufficient drill data has been generated during the Phase 1 drilling to allow
for an initial non-code compliant estimation of mineral resources at
Silverking to direct internal mine planning.
Drillhole SKIDD018 intersected a second mineralized body sub-parallel to the
main Silverking orebody which confirms the presence of additional near-surface
mineralisation. Further follow-up drilling is planned.
Further licence wide exploration identified additional targets, including at
the Kopje prospect, located to the south of the main Silverking orebody. At
Kopje multiple structures have been identified intersecting a steep dolomitic
hill. The prominent structure is oriented N-S over a strike length of 1km and
there is evidence of associated sulphide mineralisation. Channel sampling over
prominent structures returned 4.3m at 2.55% Cu and 30.40 g/t Ag and
preparatory work is underway to provide access for roughly 2,000m of drilling
in the following drilling season.
An additional high-priority target has been identified at the Worm prospect,
where a 2km long sinuous structure has been identified along the western
boundary of the licence. It is thought that the structure identified could
represent an extension of the regional structure that hosts the neighbouring
Kitumba mine (27.9Mt @ 2.2% Cu). Further work is contingent on the outcome of
continued exploration.
Ground exploration and targeting will continue on the licence with the use of
VTEM geophysical equipment and surface geochemical surveys, that together are
capable of identifying mineralisation under the blind sand cover. The use of
VTEM geophysical surveys can identify targets to depths of up to 400m and the
methodology was crucial in the discovery of the blind mineralised structure
intersected in SKIDD018.
In continuation to the on-going economic studies on the project, metallurgical
samples of the lower-grade halo surrounding the main Silverking breccia-pipe
have been prepared. It is anticipated that effective pre-concentration
processes will be established that have the potential to enhance the economic
viability of any future mining operation. Bulk samples will be subjected to
conventional gravity separation techniques to generate enhanced
pre-concentrate material that is suitable for downstream processing and final
beneficiation.
Table 1 - Summary of mineralised intervals intersected during the Phase 1
drilling at Silverking
Further licence wide potential remains, associated with a second breccia pipe
structure identified 800m from the main Silverking orebody, that is coincident
with surface anomalism, and several magnetic anomalies near the main body that
could represent mineralized off-shoots.
Silverking Cu-Ag Project Background
The Silverking project comprises exploration licence 26673-HQ-LEL which covers
an area of 82km in the Mumbwa District, Central Province of Zambia. The
licence is considered highly prospective for the discovery of deposits of
copper associated with the Iron Oxide Copper Gold (IOCG) model, and neighbours
the Kitumba deposit, which in 2024 received a US$58.5m investment for a 65%
interest from Chinese Investors Sinomine Resources Group. The licence is
subject to a joint venture agreement with Oval Mining Limited, who are in
cooperation with Cooperlemon Consultancy and Xtract have the option to earn up
to a 70% interest.
The initial joint venture period to acquire a 51% interest in the project was
contingent upon fulfilling expenditure commitments of US$500,000. Following
the completion of the Phase 1 drilling the expenditure threshold has been
reached and Xtract have the option to increase its interest to 70% by
expending an additional US$1,000,000 over the subsequent two years. This is
subject to Cooperlemon's right to maintain its interest in the licence and
earn back up to 70%, by participating in such ongoing expenditure.
Mineralisation at Silverking shares many characteristics associated with the
nearby Kitumba deposit, including a prominent breccia pipe that hosts vein and
stockwork hosted copper, deep levels of intense oxidation, and high-grade
supergene enrichment.
Historical drilling at the Silverking mine was exceptionally high-grade, 1m
intercepts peaked at over 52% Cu, and a best interval of 50m @ 5.47% Cu was
returned from 55m downhole in in drillhole SVKRC002. Historical exploration
was focussed on the discovery of a tier one deposit and data compilation
suggests that high-grade supergene mineralisation was not targeted down-dip or
down-plunge, resulting in several drill holes ending in mineralisation.
Western Foreland Cu Project, Western Foreland Mineral District, Zambia
Reconnaissance works have been completed on all 5 licences during the
reporting period, including mapping, geophysical interpretation, detailed
ground magnetic surveys, stream sediment sampling and diamond drilling.
Three diamond drillholes were drilled on licence 29123-HQ-LEL for a total of
529.4m of drilling. The holes were designed to map the underlying lithology
and structure on the licence. Combined with surface geological mapping, the
drilling was successful in identifying the lithological and structural
architecture and identified several prospective characteristics capable of
hosting redox fronts, and in turn, high-grade Kamoa-style mineralisation.
Further interrogation of these horizons will form the basis of Phase 2
exploration during 2025.
A total of eight stream-sediment copper anomalies were identified on the 4
adjoining licences (30458-HQ-LEL, 30459-HQ-LEL, 21850-HQ-LEL and 21851-HQ-LEL)
located within the Fold & Thrust Belt domain, these anomalies will be
investigated for their Kolwezi-style copper mineralisation potential during
Phase 2 exploration in 2025.
The Phase 2 exploration programme will focus on evaluating mapped and inferred
redox boundaries identified during the lithological studies accomplished in
Phase 1, conducting detailed ground electro -magnetic (EM) and magnetic
surveys along selected profiles, and following-up prospective targets with
diamond drilling. Exploration is expected to re-commence at the end of the
rainy season in mid-2025.
Western Foreland Cu Project Background
The project comprises five large scale exploration licences totalling 173,586
Ha across the prospective Western Foreland and Fold & Thrust Belt
geological districts of Northwestern Zambia, collectively known as the Western
Foreland. The Western Foreland region is an emerging copper district,
underexplored to date and subject to investment and fresh geological
remodelling from leading global exploration companies. Significant potential
exists for the discovery of high-grade and high-tonnage copper deposits akin
to Ivanhoe Mines Kamoa-Kakula complex, which is situated just 100km along
strike in the neighbouring Democratic Republic of Congo. Ivanhoe continue to
make discoveries in the region and have reported a total of 48Mt of copper
discovered to date. Recent exploration at the Kitoko deposit discovered copper
mineralisation in previously unknown stratigraphic horizons, highlighting the
prospectivity and potential of the whole region. Additionally, The Fold &
Thrust Belt terrane hosts the bulk tonnage Kolwezi deposit, with potential for
similar discovery extending over the licences.
Xtract's primary objective since acquisition has been to define the
stratigraphy and prospective redox boundaries that host copper mineralisation
in the region. Redox fronts are situated between oxidised and reducing strata
and can be targeted based on lithological succession, manifested in the local
stratigraphy. Reconnaissance surface mapping and lithological drilling
completed to date have been successful in establishing the prospective
stratigraphy of the target area and have provided invaluable information for a
broader exploration programme.
Dump Material, Zambian Copperbelt
On the 6 February 2025, Xtract announced an agreement to purchase dump
material from several sites situated in the Zambian Copperbelt, for a
consideration of US$300,000 to be funded from existing cash resources. It is
the intention to conduct trial test work and evaluation of the material that
is valued at US$1.15 per tonne and will be recovered from the sellers' sites
in Zambia by Xtract. The seller remains liable for and shall pay any statutory
royalties or any other duties or charges due to the relevant authorities on
the sale of any material to Xtract.
Chilibwe Cu Joint Venture Project, Zambia
In the previous reporting period Xtract announced that it had signed an
exclusive collaboration agreement with Chilibwe Mining Limited in relation to
large scale exploration licence 22118-HQ_LEL, known as the Chilibwe/Ngala
project. The licence covers 27,527ha and is situated in North Central Zambia
on the border with the Democratic Republic of Congo to the northwest of
Eurasian Resources Group's Frontier mine, and the southeast of the historic
Mufulira copper mine.
The licence is currently subject to a dispute with the previous joint venture
partner which has restricted Chilibwe from developing the project, and a case
has been lodged with the High Court for Zambia to have the existing joint
venture terminated, releasing the 100% interest in the licence back to
Chilibwe.
Once the dispute is resolved Xtract will initially provide guidance to assess
the prospectivity of the Licence, and contingent on results may assist
Chilibwe in securing finance to develop the licence in return for a 25%
interest in the project. Xtract has made no commitment to provide any funding
from its own sources to the project.
Kakuyu Cu-Co Project, Mumbwa Province, Zambia
The Kakuyu project is located approximately 53km north-west of the town of
Mumbwa, in the Central Province of Zambia. The project comprises a small-scale
mining licence that is inclusive of the small historic Kakuyu open pit, and an
adjacent exploration licence. The Kakuyu open pit was subject to a small-scale
mining operation prior to acquisition, and the region is well-known for
mining, including the nearby mines and occurrences of Sable Antelope, True
Blue, Crystal Jacket, Maurice F Gifford, Lou Lou, Silverking and Kamiyobo. The
most recent discovery is the Iron Oxide Copper Gold ("IOCG") Kitumba deposit.
Work continues to define the potential for a future open pit mining operation,
as well as assess the wider licence area for concentrations of additional
mineralisation.
Morocco
Wildstone SARL Joint-Venture Agreement, Morocco
On the 26 February 2025 Xtract announced the acquisition of an initial 50%
shareholding in Moroccan based minerals exploration and development company
Wildstone SARL, who are actively developing small-scale mining opportunities
in Morocco with a prominence in antinomy, copper and silver. Post year-end on
the 15 July 2025 Xtract announced it had increased its interest in Wildstone
to 80%, conditional on the agreed phased expenditure of not less than
US$900,000 over the initial three-year period. The granting of the additional
30% equity reflects the commitment by both parties to develop a significant
antinomy business in Morocco.
Wildstone has 20 non-contiguous licences located in Central Morocco and holds
the rights for the exploration and extraction of copper, silver and
antimony. The licences are valid until October 2026, pending any future
renewals, and have received limited exploration to date.
Post-year end it was announced that an initial 90-day reconnaissance programme
on the antinomy licences had completed. The licences are located within the
Fez-Meknes and Beni Mellal-Khenifra directorates of northern Morocco, situated
within two strategic districts inside the "Antimony Triangle," an area bounded
by the cities of Rabat, Fez, and Khenifra. Together, the licences cover
approximately 380 square kilometres, incorporating areas of known antimony
mineralisation, newly identified mineralised structures, potential extensions
of antimony-bearing veins, and several former commercial producing mines.
Xtract's technical team are leading exploration activities on priority targets
which will include detailed ground truthing, ground geophysics and subsequent
drilling. A small team of experienced, newly appointed Moroccan geologists are
accompanied by a local geological service provider and they will soon be
joined by a mining engineer, bringing the local team to seven persons.
Xtract is actively building partnerships with small-scale miners operating
within and nearby its licences, building on the experience and local knowledge
of its Moroccan partners in the sourcing, processing, and trade of antimony
ores. Xtract continues to engage with the relevant ministries as well as local
landowners and the small-scale mining community. Wildstone intends that ore
will be processed using basic equipment that is currently in use for similar
sites in Morocco, and if the exploration is successful and deemed appropriate
then a more sophisticated plant will be built.
Wildstone SARL Collaboration Agreement Background
Wildstone was incorporated in Casablanca, Morocco on 22 September 2021 with
company number 516789 and its main activity is mining, exploration and
extraction in Morocco. Wildstone has 20 exploration licences (and not 15 as
previously reported in February) which were issued in July 2023 for the
exploration and extraction of copper, silver and antimony and which are
situated in Central Morocco (but not contiguous). To date, very limited
exploration has taken place and these licences are due for renewal in July and
October 2026. In addition, a further 4 licences were subsequently acquired
by Wildstone for a nominal amount in May 2025 ("New Licences") and these New
Licences will be due for renewal May 2028.
On 26 February 2025, Xtract announced that it had acquired a 50% share in
Wildstone. Under the terms of the agreement Xtract committed to spend
US$900,000 over a period of 3 years which will make up the minimum spend on
the licences. Post year-end, on the 15 July 2025, Xtract announced that it had
increased its interest in Wildstone to 80%. With the addition of the new
licences, Xtract has committed a further US$300,000 for exploration
expenditure (being the minimum spend on the new licences). It is the aim of
the joint venture to establish one, or more, JORC resources.
Small and Larger Scale Mine Development
The parties anticipate that the collaboration could rapidly progress towards
small scale mining. Any small-scale mining operation developed will utilise
Wildstone's own contractors, and the capital funding for the operation of
US$200,000 will be provided by Xtract, who will be allowed to recover the
initial capital by being paid 75% of free cashflow. Xtract shall be
responsible for all small-scale development funding until such time as the
operation is demonstrating a surplus income over expenditures (including
sustaining and maintenance capital). On full capital repayment, Xtract will
be entitled to 60% of all profits.
The small-scale development will continue during the exploration phase and
will be replaced or may run concurrently if the potential for a larger more
sophisticated processing plant is identified (larger scale development). For
the purposes of defining potential for a larger scale development, the
criteria to be used is not less than 5 years mine life at a minimum annual
throughput of 150,000 tonnes, with a DCF model demonstrating a payback of not
more than 18 months and a return on investment not less than 20%.
Xtract will be expected to fund 100% of the larger scale development,
anticipated to be US$1million on the plant design, construction,
implementation and commissioning. On commencement of production, Xtract will
receive 60% of cashflow for capital recovery, the remainder will be shared 70%
to Xtract and 30% to the existing shareholders in Wildstone. This
arrangement will continue for 18 months, or until the capital is fully repaid,
whichever is the shorter. After the completion of the 18-month period, the
profits will be shared 80% to Xtract and 20% to the existing shareholders.
Mozambique
Manica Gold Project, Mozambique
On the 25 February 2025 an amendment to the Manica sale agreement was agreed
with the vendors MMP. In the amended agreement the US$3 million balloon
payment due on or before 1 March 2027 will be split over three payments of
US$1 million each due on, or before, the 1 March 2027, 1 June 2027, and 1
September 2027. The payment schedule for the deferred consideration of US$3
million that becomes payable upon the buyer's decision to build a sulphide
plant will now be payable over six payments on the amended basis detailed
below.
· US$250,000 within the earlier of i) 14 days of the decision to
build a sulphide plant and ii) 1 December 2026;
· US$250,000 within the earlier of i) 14 days of commencement of
dry commissioning of the sulphide plant and ii) 1 December 2027;
· US$500,000 within the earlier of i) 14 days of the sulphide plant
processing 30,000 tonnes in any 30-day period ("commercial production"); and
ii) 1 March 2028;
· US$750,000 within the earlier of i) 3 months of the sulphide
plant achieving commercial production; and ii) 1 June 2028;
· US$750,000 within the earlier of i) 6 months of the sulphide
plant achieving commercial production; and ii) 1 September 2028; and
· US$500,000 within the earlier of i) 9 months of the sulphide
plant achieving commercial production; and ii) 1 December 2028.
All other terms of the Agreement remain unchanged and can be found in the RNS
released 24 January 2024.
The sale agreement was amended on the grounds that mining is due to progress
to the more complex ore stage, where the material being mined will transition
between oxide ore and sulphide ore, thus reducing overall recovery and
profitability. During the process of designing the sulphide flow sheet the
buyers have acquired additional sulphide projects in the adjacent area, and
the differing metallurgical characteristics of these may affect the overall
design of the sulphide plant. Because of this the buyers asked that the
payment schedule be amended to allow time for additional testing, and Xtract
have agreed on the basis that this will assist with a smooth transition from
oxide to sulphide mining and a revised oxide mining plan which will ensure
continuity of operations and maintain a stable working environment at Manica.
The cashflow from which is being used to pay Xtract.
Manica Project Sale Agreement Background
On 24 January 2024 Xtract announced the disposal of its 23% interest in the
Manica Gold project. The decision was strategic, allowing the disposal of the
financial risk associated with the Manica project as it progressed towards the
complex ore mining phase, whilst providing the opportunity to advance their
copper interests.
An initial US$3.325m was paid under the terms of the mining collaboration
agreement, received from its partner MMP, which released Xtract and Explorator
(Xtract's local Mozambique subsidiary) from the agreement. A further US$15m
will be settled via staged payments to 28 December 2028 (the rescheduled
date). Under the sale agreement, if the buyer fails to meet the staged payment
schedule, the exploration licence and mineral resource will be returned to
Xtract.
The disposal decision was based on an assessment of the risks associated with
the future nature of the ore to be extracted from the Manica project. As the
volume of the more simply processed oxide ore is depleted, the project moves
into the more complex mixed oxide/sulphide mining stage, which has yet to be
fully scoped. Inconclusive studies projecting the metallurgy and recovery of
gold in deeper sulphide mineralisation, incomplete information regarding
future capital expenditure for sulphide mining and necessary infrastructure
improvements, and the limited capacity for Xtract management to have influence
during the decision-making process as a minority shareholder were all risk
factors taken into consideration.
Australia
Bushranger Cu-Au Project, Lachlan Fold Belt, New South Wales
A two-stage review of potential ore pre-concentration methodologies was
completed in the previous reporting period by Altrius Consulting Pty. The
study aimed to assess the potential impact of ore pre-concentrate upgrade on
the overall financial viability of the project.
The study concluded that coarse particle flotation tests, using advanced
NovaCell(TM) kinetic flotation equipment technology provided the best results,
yielding 78% of copper mineralisation into only 5% of the mass, achieving an
upgraded pre-concentrate product of 2.8% Cu. The study also concluded that
NovaCell(TM) coarse particle flotation recovered 30% more copper than
conventional flotation, and therefore it is concluded that the use of
NovaCell(TM) kinetic technology on any future operation developed at
Bushranger will have a significant positive impact on the processing costs of
the copper-gold mineralisation, increasing mine viability.
Work continues to evaluate and progress the Bushranger project towards
operation.
Enquiries:
Xtract Resources Plc Colin Bird, Executive Chairman +44 (0)20 3416 6471
Beaumont Cornish Roland Cornish +44 (0)20 7628 3369
(Nominated Adviser) Michael Cornish
Felicity Geidt
Email: corpfin@b-cornish.co.uk (mailto:corpfin@b-cornish.co.uk)
Novum Securities Limited Colin Rowbury/Jon Belliss +44 (0)207 399 9427
(Joint Broker)
Shard Capital Partners (Joint Broker Gareth Burchell / Damon Heath +44 (0) 207 186 9951
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR"). The person who arranged for
the release of this announcement on behalf of the Company was Joel
Silberstein, Director.
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 (http://www.xtractresources.com)
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.
Xtract Resources PLC
Consolidated Income Statement
For the six-month period ended 30 June 2025
Six months ended Year ended
Notes 30 June 2025 30 June 31 December
Unaudited 2024 2024
£'000 Unaudited Audited
£'000 £'000
Continuing operations
Other operating income 5 - - 4
Other non-operating income - - -
Administrative and operating expenses (781) (818) (1,380)
Direct Operating (7) - (2)
Other Operating (100) (201) (237)
Administration (674) (617) (1,141)
Project expenses (26) (23) (30)
Operating profit/(loss) (807) (841) (1,406)
Other gains and losses 42 810
620
Finance (cost)/income (265) 115 367
Profit/(loss) before tax (1,030) 84 (419)
Taxation (139) (197) (395)
Profit/(loss) for the period from continuing operations 3 (1,169) (113)
(814)
(Loss)/Profit from discontinued operations - (48)
(48)
Profit/(loss) for the period 5 (1,169) (161) (862)
Attributable to:
Owners of the Company (1,169) (161) (862)
From continuing operations (1,169) (113) (862)
From discontinued operations - (48) -
Basic (pence) 5 (0.00) (0.02) (0.10)
Diluted (pence) 5 (0.00) (0.02) (0.10)
Xtract Resources PLC
Consolidated statement of comprehensive income
For the six-month period ended 30 June 2025
Six months ended Year ended
30 June 30 June 31 December
2025 2024 Unaudited 2024
Unaudited £'000 Audited
£'000 £'000
Profit /(Loss) for the period (1,169) (161) (862)
Other comprehensive income
Items that will not be reclassified subsequently to profit and loss
Exchange differences on translation of foreign operations
(681) (98) (651)
Other comprehensive income/(loss) for the period (681) (98) (1,513)
Total comprehensive (loss)/income for the period (1,850) (259) (1,513)
Attributable to:
Equity holders of the parent (1,850) (259) (1,513)
(1,850) (259) (1,513)
Xtract Resources PLC
Consolidated Statement of Financial Position
As at 30 June 2025
Notes 30 June 2025 Unaudited 30 June 2024 31 December
£'000 Unaudited 2024 Audited
£'000 £'000
Non-current assets
Intangible Assets 6 7,339 8,095 7,596
Property, plant & equipment 7 59 23 40
Other financial assets 6,729 7,689 6,910
14,127 15,807 14,546
Current assets
Trade and other receivables 131 127 148
Inventories - - -
Other financial assets 2,381 2,320 2,341
Cash and cash equivalents 939 2,002 2,170
3,451 4,449 4,659
Non-current assets for sale and assets of disposal groups - -
-
Total assets 17,578 20,256 19,205
Current liabilities
Trade and other payables 339 432 437
Other loans - - -
Current tax payable 534 197 395
873 629 832
Liabilities of disposal groups - - -
Non-current liabilities
Environmental rehabilitation provision - - -
- - -
Total liabilities 873 629 832
Net current assets/(liabilities) 2,578 3,820 3,827
Net assets 16,705 19,627 18,373
Equity
Share capital 9 4,975 4,975 4,975
Share premium account 71,978 71,978 71,978
Warrant reserve - - -
Share-based payments reserve 2,190 2,106 2,007
Fair Value reserve - - -
Foreign currency translation reserve (1,113) 122 (431)
Accumulated losses (61,325) (59,554) (60,156)
Equity attributable to equity holders of the parent 16,705 19,627 18,373
Total equity 16,705 19,627 18,373
Xtract Resources PLC
Consolidated statement of changes in equity
As at 30 June 2025
Share Capital Share premium account £'000 Warrant reserve Share-based payments reserve £'000 Fair Foreign currency translation reserve £'000 Accumulated losses Total Equity
£'000 £'000 value £'000 £'000
reserve
£'000
Balance at 31 December 2023 4,975 71,978 2,106 - 220 (59,393) 19,886
Profit for the period - - - - - - (161) (161)
Foreign currency translation difference - - - - - (98) - (98)
Expiry of share options - - - - - - - -
Expiry of warrants - - - - - - - -
Exercise of warrants - - - - - - - -
Balance at 30 June 2024 4,975 71,978 - 2,106 - 122 (59,554) 19,627
Profit/(loss) for the period - - - - - - (701) (701)
Foreign currency translation difference - - - - - (553) - (553)
Issue of Shares - - - - - - - -
Exercise of options - - - (99) - - 99 -
Balance at 31 December 2024 4,975 71,978 - 2,007 - (431) (60,156) 18,373
Profit/(loss) for the period - - - - - - (1,169) (1,169)
Foreign currency translation difference - - - - - (681) - (681)
Issue of Shares - - - - - - - -
Issue of options - - - 182 - - - 182
Balance at 30 June 2025 4,975 71,978 - 2,189 - (1,112) (61,325) 16,705
Xtract Resources PLC
Consolidated Statement of Cash Flows
For the six-month period ended 30 June 2025
Notes 6 months period ended 6 months period ended
30 June 2025 30 June 2024 Year ended
Unaudited Unaudited 31 December
£'000 £'000 2024
Audited
£'000
Net cash used in operating activities 10 (378) 119 (413)
Investing activities
(20) -
Purchase of Property, plant and equipment -
Purchase of other intangible assets (7) - -
Receipts from Manica sale - - 2,344
Purchase of financial assets (1,554) - (411)
Acquisition of intangible fixed assets - - -
Acquisition of tangible fixed assets - - -
Sale of financial assets 1,144 1,180 -
Net cash from/(used in) investing activities (437) 1,180 1,933
Financing activities
Proceeds on issue of shares - - -
Repayment of borrowings - (50) -
Proceeds from borrowings - - (50)
Net cash from financing activities - (50) (50)
Net increase/(decrease) in cash and cash equivalents (815) 1,249 1,470
Cash and cash equivalents at beginning of period 2,170 630 630
Cash disclosed as part of disposal group - - 70
Effect of foreign exchange rate changes (416) 123 -
Cash and cash equivalents at end of period 939 2,002 2,170
Xtract Resources PLC
Notes to the interim financial information
For the six-month period ended 30 June 2025
1. General information
Xtract Resources PLC ("Xtract") is a company incorporated in England and Wales
under the Companies Act 2006. The Company's registered address is 1(st) Floor,
7/8 Kendrick Mews, London, SW7 3HG. The Company's ordinary shares are traded
on the AIM market of the London Stock Exchange. The Company invests and
engages in the management, financing and development of early-stage resource
assets.
2. Accounting policies
Basis of preparation
Xtract prepares its annual financial statements in accordance with UK-adopted
international accounting standards and in conformity with the Companies Act
2006.
The consolidated interim financial information for the period ended 30 June
2025 presented herein has been neither audited nor reviewed. The information
for the period ended 31 December 2024 does not constitute statutory accounts
as defined in section 434 of the Companies Act 2006 but has been derived from
those accounts. The auditor's report on those accounts was not qualified and
did not contain statements under section 498 (2) or (3) of the Companies Act
2006. As permitted, the Group has chosen not to adopt IAS 34 'Interim
Financial Reporting'.
The Interim financial information is presented in pound sterling and all
values are rounded to the nearest thousand pounds (£'000) unless otherwise
stated.
The interim consolidated financial information of the Group for the six months
ended 30 June 2025 were authorised for issue by the Directors on 29 September
2025.
Going concern
As at 30 June 2025 the Group held cash balances of £0.94 million. An
operating loss has been reported for the Group.
On 24 January 2024, the Company announced that it had agreed terms for the
disposal of the Manica Gold Project with its Mozambique partner, MMP. The
Share Purchase Agreement in relation to the sale by the Company of its entire
interests in the project for a consideration of up to US$15 million in cash in
regular staged payments by the Buyers over the period to 1 March 2027.
As at the date of the release of the consolidated financial information, the
Group had received the 7(th) quarterly payment of US$0.75m from the proceeds
of the sale of the Manica Asset. The Group has continued with its exploration
activities in Zambia and Australia.
The Directors anticipate net operating cash inflows for the Group for the next
twelve months from the date of signing these financial statements.
The Directors have assessed the working capital requirements for the
forthcoming twelve months and have undertaken assessments which have
considered different scenarios based on exploration spend on its exploration
projects in Zambia, Morocco and Australia until September 2026.
Upon reviewing those cash flow projections for the forthcoming twelve months,
the directors consider that the Company is not likely to require additional
financial resources in the twelve-month period from the date of approval of
these financial statements to enable the Company to fund its current
operations and to meet its commitments. The Group will continue to monitor
corporate overhead costs on an ongoing basis.
The Directors therefore continue to adopt the going concern basis of
accounting in preparing the consolidated financial information and therefore
the consolidated financial information does not include any adjustments
relating to the recoverability and classification of assets and liabilities
that may be necessary if the going concern basis of preparation of the
consolidated financial information is not appropriate.
On this basis the Board believes that it is appropriate to prepare the
consolidated financial information on the going concern basis.
Changes in accounting policy
The accounting policies applied are consistent with those adopted and
disclosed in the Group Consolidated financial statements for the year ended 31
December 2024, except for the changes arising from the adoption of new
accounting pronouncements detailed below.
There are no amendments or interpretations to accounting standards that would
have a material impact on the financial statements.
3. Business segments
Segmental information
The divisions on which the Group reports its primary segment information are
reported to its Executive Chairman, who is the Chief Operating Decision maker
of the Group. The Executive Chairman and the Chief Operating Officer are
responsible for allocating resources to the segments and assessing their
performance.
Principal activities are as follows:
· Exploration
· Investment and other
Total
Segment results
Investment
6 months ended 30 June 2025 Exploration (Continuing) And Other
(Continuing)
£'000 £'000 £'000
Administrative and operating expenses - (781) (781)
Direct Operating - (7) (7)
Other Operating - (100) (100)
Administration - (674) (674)
Project expenses - (26) (26)
Operating profit/(loss) - (807) (807)
Other gains and losses - 42 42
Finance (cost)/income - (264) (264)
Profit/(loss) before tax - (1,029) (1,029)
Taxation (139) (139)
Profit/(loss) for the period from continuing operations - (1,168) (1,168)
Mine Development (Continuing) Investment and Other (Continuing) Total
6 months ended 30 June 2024
Alluvial Gold Mining Production (Continuing)
Exploration (Continuing)
£'000
£'000 £'000 £'000 £'000
Segment revenue
Sale of gold bars - - - 393 393
Less: Cost of sales - - - - -
Segment Gross profit - - - 393 393
Other operating income - - 1,669 - 1,669
Non-operating income
Administrative and operating expenses
- (94) (352) (605) (1,051)
Project Costs - (184) (34) (208) (426)
Segment result - (278) 1,283 (420) 585
Other gain and losses - - - - -
Finance costs - - 47 (10) 37
(Loss)/profit before tax - (278) 1,330 (430) 622
Tax - - - (1) (1)
(Loss)/Profit for the period - (278) 1,330 (431) 621
Year 31 December 2024 Investment and Other (Continuing) Total
Exploration (Continuing)
£'000 £'000 £'000
Other operating income - 4 4
Administrative and operating expenses
- (1,380) (1,380)
Project Costs - (30) (30)
Segment result - (1,406) (1,406)
Other gains and losses - 620 620
Finance income / (costs) - 367 367
(Loss)/Profit before tax - (419) (419)
Tax - (395) (395)
(Loss)/Profit for the period - (814) (814)
30 June 2025 30 June 2024 31 December 2024
Balance Sheet
£'000 £'000 £'000
Total Assets
Gold production - - -
Exploration 7,461 8,234 11,520
Investment & other 10,117 2,021 7,685
Total segment assets 17,578 10,255 19,205
Assets relating to discontinued operations - 10,008 -
Consolidated total assets 17,578 20,263 19,205
Liabilities
Gold production - - -
Exploration (167) (222) (195)
Investment & other (706) (406) (637)
Total segment liabilities (873) (628) (832)
Liabilities relating to discontinued operations - - -
Consolidated total liabilities (873) (628) (832)
The accounting policies of the reportable segments are the same as the Group's
accounting policies which are described in the Group's latest annual financial
statements. Segment results represent the profit earned by each segment
without allocation of the share of profits of associates, central
administration costs including directors' salaries, investment revenue and
finance costs, and income tax expense. This is the measure reported to the
Group's Board for the purposes of resource allocation and assessment of
segment performance.
4. Tax
At 30 June 2025, the Group has no deferred tax assets or liabilities and other
taxes of £0.15 million (2024: £0.2million) charge for the period.
5. Loss per share
The calculation of the basic and diluted loss per share is based on the
following data:
Year ended
Six months ended
Profit/(Losses) 30 June 2025 30 June 2024 31 December 2024
£'000
£'000 £'000
Profit/(Losses) for the purposes of basic earnings per share being: (1,169) (161)
Net (loss)/ Profit from continuing operation attributable to equity holders of
the parent
(862)
(1,169) (161) (862)
Number of shares
Weighted average number of ordinary and diluted shares for the purposes of 856,375,115 856,375,115
basic earnings per share
856,375,115
(Loss)/profit per ordinary share basic and diluted (pence) (0.00) (0.02) (0.10)
In accordance with IAS 33, the share options and warrants do not have a
dilutive impact on earnings per share, which are set out in the consolidated
income statement. Details of the shares issued during the period as shown in
Note 9 of the Financial Statements.
6. Intangible assets
Development expenditure & Mineral exploration
Total
£'000 £'000
As at 1 January 2025 8,896 8,896
Additions - at fair value (Bushranger) - -
Additions - at cost (Bushranger) 7 7
Foreign exchange (264) (264)
As at 30 June 2025 8,639 8,639
Amortisation
As at 1 January 2025 (1,300) (1,300)
Charge for the year - -
As at 30 June 2025 (1,300) (1,300)
Net Book value at 1 January 2025 8,896 8,896
Net book value at 30 June 2025 7,339 7,339
Australia
In November 2020, the Company acquired the Bushranger copper-gold project
("Bushranger Project") which comprises of four exploration licences totalling
501km2, located in eastern central New South Wales, Australia. The Bushranger
Project hosts the Racecourse deposit, a JORC (2012) compliant inferred
resource estimated at 71Mt @ 0.44% Cu and 0.064g/t Au using a 0.3% Cu cut-off.
7. Property, plant and equipment
Cost or fair value on acquisition of subsidiary Motor Vehicles & equipment Land & Buildings Furniture & Fittings Total
£'000 £'000 £'000 £'000
At 1 January 2025 76 - - 76
Additions - at cost 21 - - 21
Foreign exchange (2) - - (2)
At 30 June 2025 95 - - 95
Depreciation
At 1 January 2025 36 - - 36
Charge for the period - - - -
At 30 June 2025 36 - - 36
Net book value
At 30 June 2025 59 - - 59
At 1 January 2025 40 - - 40
8.Other Financial Assets
30 June 2025 30 June 2024 31 December 2024
£'000 £'000 £'000
Non-Current Assets
Silverking Project 564 - 57
Chilibwe 223 - 138
Western Foreland-Zambia 215 - 215
Morrocco 722 - -
Manica disposal- receivable 5,005 7,689 6,500
6,729 7,689 6,910
Current Assets
Zambia - Dump Material 241 - -
Manica disposal- receivable 2,140 2,320 2,341
Total 2,381 2,320 2,341
Silverking Project
In April 2024, the Company entered into a joint venture agreement with
Cooperlemon in relation to the Silverking Project and Licence. Under the joint
venture agreement the Company agreed the following key terms:
The Company has an option period of 18 months to earn an initial 51% in the
Licence provided it spends US$0.5 million in exploration over the period. The
joint venture will then be formally established between the Company and
Cooperlemon. The Company may withdraw at any time during the option period but
will lose its right to earn 51% in the Licence. On completion of the earn in
period, or as such other time as the Company has spent US$500,000, and the
Company may then advise Cooperlemon of its intention to increase its interest
in the Licence to 70% by agreeing to spend a further US$1,000,000 over two
years on exploration and development of the Licence, subject to Cooperlemon's
right to maintain its interest in the Licence through an option to earn back
up to 70% by participating in such ongoing expenditure.
Chilibwe Project
In October 2024 the Company entered into an exclusive collaboration agreement with Chilibwe Mining
Limited ("Chilibwe") in relation to large scale exploration licence 22118-HQ-LEL in Zambia (the" Licence").
The Company will earn a 25% shareholding in Chilibwe Mining and /or 25% interest in the Project by
preparing a work programme and budget for the exploration and development of the Licence and
assisting in obtaining funding for the Project.
Western Forland - Zambia
In August 2023, the Company entered into a joint venture with Cooperlemon
Consultancy to explore two large-scale exploration licences; 29123-HQ-LEL and
30459-HQ-LEL. In May 2024, three additional licences, 21850-HQ-LEL,
21851-HQ-LEL & 30458-HQ-LEL, were added to the agreement, bringing the
total to five licences. As part of the agreement, the Company committed an
initial investment of US$3.5 million to fund the first phase of exploration
across all 5 licences. This investment aims to earn the Company a 65% interest
in the project.
The project comprises five large scale exploration licences totalling 173,586
Ha across the prospective Western Foreland and Fold & Thrust Belt
geological districts of Northwestern Zambia, collectively known as the Western
Foreland. The Western Foreland region is an emerging copper district,
underexplored to date and subject to fresh geological remodelling propelled by
investment from leading global exploration companies.
Wildstone SARL Joint-Venture Agreement, Morocco
On the 26 February 2025 Xtract announced the acquisition of an initial 50%
shareholding in Moroccan based minerals exploration and development company
Wildstone SARL, who are actively developing small-scale mining opportunities
in Morocco with a prominence in antinomy, copper and silver. Post year-end on
the 15 July 2025 Xtract announced it had increased its interest in Wildstone
to 80%, conditional on the agreed phased expenditure of not less than
US$900,000 over the initial three-year period. The granting of the additional
30% equity reflects the commitment by both parties to develop a significant
antinomy business in Morocco.
Wildstone has 20 non-contiguous licences located in Central Morocco and holds
the rights for the exploration and extraction of copper, silver and
antimony. The licences are valid until October 2026, pending any future
renewals, and has been limited exploration to date.
Dump Material, Zambian Copperbelt
On the 6 February 2025, Xtract announced an agreement to purchase dump
material from several sites situated in the Zambian Copperbelt, for a
consideration of US$300,000 to be funded from existing cash resources. It is
the intention to conduct trial test work and evaluation of the material that
is valued at US$1.15 per tonne and will be recovered from the sellers' sites
in Zambia by Xtract. The seller remains liable for and shall pay any statutory
royalties or any other duties or charges due to the relevant authorities on
the sale of any material to Xtract.
Disposal of the Manica Gold Project
In January 2024, the Company announced that it had agreed with its Mozambique
partner, MMP, and parties related to MMP terms for the disposal of the Manica
Gold Project. The terms agreed were as follows:
The Share Purchase Agreement
The Company agreed to sell its 23% net profit share interest in the Manica
Gold Project (by way of a sale of the entire issued share capital of Mistral)
to the Buyers for a consideration of up to US$15 million in cash in regular
staged payments by the Buyers over the period to 1 March 2027.
On 24 February 2024, the Company announced that it had completed the disposal
of the Manica Gold Project.
In February 2025 the Company announced that it had agreed with MMP, and
parties related to MMP, to reschedule the US$3m balloon payment due on or
before 1 March 2027 as well as the additional deferred payments connected with
the decision to build a sulphide orebody plant both as set out in the share
purchase agreement. The rescheduling of the balloon and deferred payments to
2027 and 2028, does not affect the total amount due to be paid by the Buyers,
which remains unchanged.
9. Share capital
As at As at As at
30 June 2025 Number 30 June 2024 31 December 2024
Number Number
Deferred shares of 0.09p each
As at 1 January 5,338,221,169 5,338,221,169 5,338,221,169
Issued during the period - - -
5,338,221,169 5,338,221,169 5,338,221,169
Ordinary shares of 0.02p each
As at 1 January 856,375,115 856,375,115 856,375,115
Issued during the period - - -
Outstanding as at 30 June 856,375,115 856,375,115 856,375,115
No Ordinary Shares of 0.02p were issued during the period.
10. Cash flows from operating activities
Six month
period ended
Six month 30 June 2024 Year ended
period ended £'000 31 December 2024
30 June 2025 £'000 £'000
Profit/(loss) for the period (1,029) 84 (419)
Profit/(loss) - disposal group - - (48)
Adjustments for:
Continuing Operations
Depreciation of property, plant and equipment - 19 -
Foreign exchange differences 716 (56)
Amortisation of intangible assets - - -
Net Finance costs 264 (76) -
Impairment of intangible assets - - -
Interest income - (115) (238)
Profit on disposal group (779)
Other (gains) /losses (42) (779) 160
Share-based payments expense 182 - -
Operating cash flows before movements in working capital 91 (867)
(1,380)
Decrease/(Increase) in inventories - - -
(Increase)/decrease in receivables 18 1,036 1,014
(Decrease)/increase in payables (99) (53) (47)
Cash (used in)/ generated from operations 10 116 (413)
Net finance costs - 3 -
Tax (paid) - - -
Net finance costs - 3 -
Net cash from/ (used in) operating activities 10 119 (413)
11. Related party transactions
There have been no changes to related party arrangements or transactions as
reported in the 2024 Annual Report.
Transactions between Group companies, which are related parties, have been
eliminated on consolidation and are therefore not disclosed. The only other
transactions which fall to be treated as related party transactions are those
relating to the remuneration of key management personnel, which are not
disclosed in the Half Yearly Report, and which will be disclosed in the
Group's next Annual Report.
12. Post balance sheet events
Increase in shareholding in Wildstone SARL
On 15 July 2025, the Company announced that Wildstone SARL had issued
additional equity on a fully diluted basis to Xtract, and the Company's equity
interest had increased to 80%.
The issue of up to 80% of Wildstone's equity on a fully diluted basis was
conditional on further phased expenditure over a three-year period of an
aggregated amount of not less than US$900,000 as previously
announced. Xtract's Moroccan partners in Wildstone elected to grant the
balance of 30% equity ahead of completion of the required aggregated
expenditure, reflecting the commitment shown to date by Xtract in terms of the
agreement entered into on 26 February 2025, to develop a significant antimony
business in Morocco.
ENDS
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