Xtract Resources Plc · LSE:XTR
Xtract Resources — Corporate Update (June 2015)
13 slides from Xtract Resources's corporate update, Jun 29, 2015
Slide 1: Investor Update – Fair Bride Acquisition Agreement
Investor Update – Fair Bride Acquisition Agreement 29 June 2015
Slide 2: Disclaimer
Disclaimer This presentation (“Presentation”) is being issued by Xtract Resources PLC. (the “Company” or “Xtract”) for information purposes only. The content of this Presentation has not been approved by an authorised person for the purposes of Section 21(2)(b) of the Financial Services and Markets
Slide 3: Where are we today?
Where are we today? Shares in Issue Market Cap Share price 2013 2.3 bn £1.4m 0.0006p Mid 2015 8.5bn £26m 0.003p In less than 16 months Company has grown from a shell with no cash and debt to a production company that is cash flow positive Shares in issue has increased four fold, the dilutionary effe
Slide 4: Benefits of Fair Bride Acquisition
Benefits of Fair Bride Acquisition EBITDA of US$27 million over a LOM of 15 years Acquisition cost of US$12.5m (including cost of BFS) and capital outlay of US$30m Payback of less than 3 years Positions Xtract as first mover to consolidate further in Mozambique and ramp up production from 50,000 oz
Slide 5: Fair Bride Acquisition
Fair Bride Acquisition Mozambique Favourable political and legal environment Vale – Moatize Coal Multi-Party Democracy since 1994 Kenmare – Moma Rio Tinto – Benga Coal Min Sands Full Ministerial support 6% Royalty The next African Qatar +100tcf Quality infrastructure FAIR BRIDE • Power, water, telec
Slide 6: Fair Bride Preliminary Economic Assessment
Fair Bride Preliminary Economic Assessment Technical and financial plan to develop Fair Bride Open pit and shallow underground 500k tonnes processed p/a Initial Capital $28.4M Average head grade > 3.0 g/t Au 46,700 oz of gold produced p/a, 8 year mine life producing 331,000 oz Au C1 Cash Cost $650/o
Slide 7: Fair Bride Project Metrics
Fair Bride Project Metrics Yy Xtract RESOURCES PLC TECHNICAL FINANCIAL MODEL - FAIR BRIDE @ 42 ktpm $100 S65 $80 S45 $60 $40 $25 = 5 = sz 2 = Es e 3 S 255 0.0 = 5 5 so 8 = S = 2 3 E $ Bu so 3 = 2 3 $40 $35 $60 $55 $80 $75 $100 © » re & Pd © we a & © mmm REVENUE mmROYALTIES = mmm PROJECTCAPEX = mm WO
Slide 8: Mozambique side of belt underexplored
Fair Bride – Opportunities to grow Production History Zimbabwe 2.5Moz Mozambique 0.0Moz Odzi-Mutare-Manica Greenstone Belt A typical Archaean greenstone belt (160 km) extends E-NE across Zimbabwean- Mozambique border Mozambique side of belt underexplored 8
Slide 9: Fair Bride Summary Development
Fair Bride Summary Development 100% owned granted mining concession Over 1M Oz in JORC resources from 4 orebodies all of which have growth potential Proposed Operation • 0.5Mt from open pit and underground for 46,700 oz of Gold per annum • Initial Capital cost less than $30M • C1 Cash Cost of $650 •
Slide 10: Chepica and O'Kiep Update
Chepica and O’Kiep Update Chepica On track to deliver profit of US$1.2m per quarter Underground development progressing well Surface exploration and drilling to commence in Q3 O’Kiep The board has approved a US$350,000 drilling, sampling and metallurgical programme to commence within two weeks Feasi
Slide 11: Appendices
Appendices 11
Slide 12: Appendix 1 – Fair Bride Key Facts
Appendix 1 – Fair Bride Key Facts Annual Production Rate 47,700 oz Au Initial mine life 8 yrs Stripping Ratio 8:1 LOM High-grade 3.49 g/t Au LOM Low-grade 0.93 g/t Au Initial capex $US 28.4 M Average sulphide recovery 80% Power Cost $US 0.064 per kwH Annual processing 0.5 Mtpa Payback < 3 yrs Direct
Slide 13: Appendix 2 The Board & Key Management
Appendix 2 The Board & Key Management 13