REG - Xtract Resources plc - Manica Alluvial Gold & Corporate Update
For immediate release
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
Beaumont Cornish Limited
Nominated Adviser and Joint Broker
Roland Cornish
Michael Cornish
Felicity Geidt
+44 (0)207628 3369
Novum Securities Limited
Joint Broker
Colin Rowbury
+44 (0)207 399 9427
www.novumsecurities.com
ENDS
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