Xtract Resources PLC · LSE:XTR
Xtract Resources — Q4 2015 Earnings Presentation
40 slides from Xtract Resources's earnings presentation, Feb 3, 2016
Slide 1: Chepica Gold Mine: Quarterly Results Presentation
Xtract Resources Plc (AIM:XTR) Chepica Gold Mine: Quarterly Results Presentation London – 3 February 2016
Slide 2: Aerial view of Chepica Gold Mine
Aerial view of Chepica Gold Mine 2 Taken with Phantom 3 Professional Drone
Slide 3: Corporate Overview
We are xtracting significant returns for shareholders We are focussing on getting the basics right We are aiming to deliver consistent results We are working towards continuous improvement We are Xtract Resources PLC (XTR:AIM) Corporate Overview
Slide 4: Vision – our destination
Vision – our destination We want to build a mining house that is profitable and able to self fund its development and create value for our shareholders What does this mean? Develop out projects to build a mining house Maximise assets in order to generate cash flow We need a sustainable growth profil
Slide 5: Our current reality – where we are
Our current reality – where we are Project level Producing Chepica Gold mine that has not fully delivered on a consistent basis. We are addressing this. Improving flexibility Addressing poor ground conditions Developing a more robust geological model Completing the Manica BFS that is potentially sig
Slide 6: Understanding what makes us different
Understanding what makes us different Chepica is a producing mine that can generate cash flow In Manica we have acquired a significant gold deposit that could transform the company (and that comes with a virtually completed BFS) We have formed successful partnerships, including MTI, that will allow
Slide 7: Strategy – how will we get there?
Strategy – how will we get there? Ensure that Chepica delivers on its production plan – current cash flow Investigate viability of Chepica Tailings Project Start Manica alluvial mining operations within a relatively short period of time, to grow the margin and create more sustainibility in terms of
Slide 8: Manica Gold project
Manica Gold project Conditions for completion of the Acquisition Auroch obtaining necessary Shareholder approval Approval received on 15th October 2015 Obtaining the necessary approvals under the Mozambique Mining Act relating to the change of control and communicating such change of control to the
Slide 9: Copper projects – South Africa
Copper projects – South Africa Recoveries too low to produce a viable copper concentrate Tested the dumps for pyrite Sulphur content too low Exited from project – no further liabilities or costs 9
Slide 10: Chepica – Operational review
Chepica turning the corner For the first time we see month on month improvement The mine has never been in such a good production position We are Xtract Resources PLC (XTR:AIM) Chepica – Operational review
Slide 11: Chepica Gold Mine
Chepica Gold Mine Crushing plant & stockpiles Colin Vent Shaft Plant Main offices Tailings dam Colin adit Chepica old adit Chepica new adit Engineering workshop Return water dam 11
Slide 12: Chepica – what are our threats?
Chepica – what are our threats? Having enough reef ends (flexibility) / keeping the mill full Understanding geological continuity at Colin Section / proper development lay-outs that avoids bad ground conditions when stoping commences Meeting our land option payment obligations (security of tenure) F
Slide 13: Chepica – what are our tactics?
Chepica – what are our tactics? To continue to develop the reef on 5, 6 and 7 level at the Colin section (developing the A Reef block) Consider a second decline at Colin to access the B-reef block Establish Chepica decline on reef during Q2 Complete the surface drilling program at Colin and continue
Slide 14: Chepica tailings dam project
Chepica tailings dam project Surface stockpiles Processing plant ±225koz @ 0,6 to 1,5g/t Tailings dam extension 14
Slide 15: Chepica – our business philosophy
Chepica – our business philosophy “If you keep your eye on the profit you are going to skimp the product (ore-body). Focus on making great products (getting the basics right) and the profits will flow.” Steve Jobs We pushed the profit at the expense of the ore-body (and as a result we have not had a
Slide 16: Q4 Actuals - unaudited
Q4 Actuals - unaudited 2015 QTR 3 2015 QTR 4 Planned Actual Planned Actual Production On reef meters 150 233 41,25 152 On reef tons 4 799 7 454 5 279 19 456 Off reef meters 50 78 - - Off reef tons 1 600 2 495 - - On reef gold grade (g/t) 2,25 3,50 - 3,27 On reef Copper grade (%) 1,00% 1,20% 0,00% 0,
Slide 17: Chepica – Production metrics
Chepica turning the corner For the first time we see month on month improvement The mine has never been in such a good production position We are Xtract Resources PLC (XTR:AIM) Chepica – Production metrics
Slide 18: Mill tons
Mill tons 8 000 7 000 6 000 5 000 Tons 4 000 3 000 2 000 1 000 - Oct-15 Nov-15 Dec-15 18
Slide 19: Stockpile tons (cumulative)
Stockpile tons (cumulative) 12 000 10 000 8 000 Tons 6 000 4 000 2 000 - Oct-15 Nov-15 Dec-15 19
Slide 20: Surface stockpiles
Surface stockpiles 20
Slide 21: Total development metres (m)
Total development metres (m) 250 200 150 m 100 50 - Oct-15 Nov-15 Dec-15 21
Slide 22: Concentrate grade – Au (g/t)
Concentrate grade – Au (g/t) 54.00 52.00 50.00 48.00 46.00 Au (g/t) 44.00 42.00 40.00 Oct-15 Nov-15 Dec-15 Target gold concentrate grade is 60g/t Concentrate gold grade for the quarter has been slightly lower at 47g/t due to the lower in situ value of surface stockpiles reporting at in situ grades o
Slide 23: Gold produced in Q4 2015
Gold produced in Q4 2015 250 200 150 Oz 100 50 - Oct-15 Nov-15 Dec-15 23
Slide 24: Chepica – Financials
Chepica turning the corner But the corner has been turned The mine has never been in such a good production position We are Xtract Resources PLC (XTR:AIM) Chepica – Financials
Slide 25: Revenue
Revenue 250 000 200 000 150 000 US$ 100 000 50 000 - Oct-15 Nov-15 Dec-15 25
Slide 26: Costs
Costs 90 000 80 000 70 000 60 000 US$ 50 000 40 000 30 000 20 000 10 000 - Oct-15 Nov-15 Dec-15 26
Slide 27: Profit/Loss
Profit/Loss 160 000 140 000 120 000 100 000 US$ 80 000 60 000 40 000 20 000 - Oct-15 Nov-15 Dec-15 27
Slide 28: Capex
Capex 300 000 Development & support 250 000 Drilling & 3D Geological software 200 000 US$ Plant & equipment 150 000 & Development 100 000 50 000 - Oct-15 Nov-15 Dec-15 28
Slide 29: Chepica – Flexibility & Growth
Increased flexibility Developing a robust geological model We are Xtract Resources PLC (XTR:AIM) Chepica – Flexibility & Growth
Slide 30: Surface drilling at Colin
Xtract RESOURCES PLC » ww ing at Colin Surface dr 30
Slide 31: Numerous significant drill intersections
Numereous significant drill intersections Colin 1: At 76.1m: 2.7m @ 3.86g/t Colin 1: At 118.6m: 4.3m – awaiting assay results Colin 2: At 114.8m: 1.5m – awaiting assay results Colin 2: At 129m: 2m – awaiting assay results Colin 3: At 55.2m: 1.8m – awaiting assay results Colin 3: At 116.2m: 10.6m – a
Slide 32: Colin – mineralized intersection
Colin – mineralized intersection 32
Slide 33: Colin mine – general layout
Colin mine – general layout Colin ventilation shaft Surface boreholes drilled From side of mountain New decline to access Colin main adit entrance B-reef block Access to A-reef block 33
Slide 34: Drilling at Colin mine
Drilling at Colin mine 3m @ 3,86g/t Access development Surface 120m @ 3,27g/t over 3,36m width Colin adit entrance Position of new decline to access B-reef block Reef projection New boreholes drilled from surface A-Reef block on side of mountain 300m 34
Slide 35: Old & new development adits at Chepica
Old & new development adits at Chepica Strong ground Weak ground New Chepica adit Old Chepica adit 35
Slide 36: In summary
Consistant delivery Continuous improvement We are Xtract Resources PLC (XTR:AIM) In summary
Slide 37: Chepica: Mill tons actual per qtr & forecast
Chepica: Mill tons actual per qtr & forecast Tons 50 000 45 000 40 000 Only 2 months of production 35 000 (plant stopped for January) 30 000 25 000 20 000 15 000 10 000 5 000 - Q4 2015 Q1 2016 Q2 2016 Q3 2016 Mill tons Tailings dam 37
Slide 38: In summary
In summary Profit of US$225,000 for Q4 Slow start to the quarter in terms of ensuring greater underground support Opened up reef on 4 levels Ready to start stoping on 5 level Accumulated a surface stockpile in excess of 10kt from off mine sources Chepica adit 30m from opening up 2 more reef drives S
Slide 39: Contact Details
Media and Investor Enquiries: Justine James Gable Communications 34 Lime Street London EC3M 7AT T: +44 (0) 7525 324431 e-mail: xtract@gablecommunications.com Company Secretary: Phil Dexter St James’s Corporate Services Limited Suite 31, 2nd Floor, 107 Cheapside London EC2V 6DN T: +44 (0) 20 7796 864
Slide 40: 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