Xtract Resources PLC · LSE:XTR
Xtract Resources — Investor Presentation (March 2015)
20 slides from Xtract Resources's investor presentation, Mar 25, 2015
Slide 1: Clear path to production and cash flow
Clear path to production and cash flow Company presentation – 25 March 2015 United Kingdom
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 now?
Where are we now? 100% owned, currently producing Chepica Gold-Copper mine in Chile • Producing 4,000t/mth from the central part of mine • Increased plant mill capacity to 10,000t/mth (new ball mill in place) • Discovered new surface gold reef (4m true width over 200m strike length at 2.5 to 8.5g/t
Slide 4: Geographic locations: Chepica mine & Copper tailings projects
Geographic locations: Chepica mine & Copper tailings projects Carolusberg sulphide & Concordia oxide copper Surface tailings projects Chepica Gold-Copper mine 4
Slide 5: Mission: what are we aiming for?
Mission: what are we aiming for? Make profit and fund growth from internal cash flow Deliver a consistent production profile and minimise impact of mine stoppage on cash flow Create mining flexibility at Chepica mine Generate a 35% profit margin within 3 months from Chepica mine Mitigate single proj
Slide 6: What do we need to do?
What do we need to do? Bed down significant progress made at the Chepica mine and ensure future production and cash flow is realised by: • Developing the newly discovered gold reef on surface • Exploring and developing the Colin and Francisco prospects to create mining flexibility • Exploring for ot
Slide 7: How will we get there?
How will we get there? Raise funds to (a) address the flexibility issues at the Chepica mine in order to minimise production output risk and (b) acquire, evaluate and bring to account the low cost surface copper opportunities in South Africa Allocation of Funds to be raised Allocation to Chepica min
Slide 8: What is the timing on all of this?
What is the timing on all of this? Chepica – Open pit 6 months Chepica mine – Central 3 months Concordia Copper oxides 6 months Value Carolusberg Sulphide Copper dumps 18 months Advanced Exploration Advanced Valuation Mine/Plant Construction Mining/Treatment Project development Phase/time Copper Gol
Slide 9: What do investors get? Value proposition
What do investors get? Value proposition Profits in excess of US$500k/mth within 3 months from Chepica mine Exposure to the discovery of more gold and copper bearing reefs at the Chepica mine Low cost entry into a surface sulphide tailings project that could be in production within 18 months that wo
Slide 10: How does this translate into the bottom line at the Chepica mine?
How does this translate into the bottom line at the Chepica mine? 9000 000 8000 000 7000 000 6000 000 US$ 5000 000 4000 000 3000 000 2000 000 1000 000 - Q2 Q3 Q4 YR 2 YR 3 Revenue Costs 10
Slide 11: How does this translate into the bottom line for the copper projects?
How does this translate into the bottom line for the copper projects? The project has an NPV of US$110m at an IRR of 68% assuming the following: • Recoveries of 75% • Copper price of US$4,500/t and operating cost of US$2,200/t • Capital of US$40m • Throughput of 5.6Mt per annum over a life of projec
Slide 12: Carolusberg surface copper sulphide dumps: South Africa
Carolusberg surface copper sulphide dumps: South Africa O’Kiep dump 5.8Mt @ 0.23% Cu Carolusberg dump 28Mt @ 0.19% Cu 12
Slide 13: Carolusberg surface copper sulphide dumps: Recoveries & Budget
Carolusberg surface copper sulphide dumps: Recoveries & Budget 50 000 , 7% 250 000 , 36% 250 000 , 36% 150 000 , 21% Drilling Sampling metallurgical test work Feasibility report Need to drill approximately 250 holes to a depth of approximately 10m Total of 2500m Complete bankable feasibility report
Slide 14: Carolusberg surface copper sulphide dumps: What is the deal?
Carolusberg surface copper sulphide dumps: What is the deal? Exclusive option period of 6 months to do drilling and test work Option fee of US$30k upon signing with commitment to invest to carry out drilling, metallurgical test work and complete feasibility report within 6 month option period If res
Slide 15: Concordia surface copper oxide dumps in South Africa
Concordia surface copper oxide dumps in South Africa Photos of heap leach operation at the Spektakel mine 15
Slide 16: Concordia surface copper oxide dumps in South Africa: The deal
Concordia surface copper oxide dumps in South Africa: The deal JV with Concordia Copper Company (‘CCC’) Option fee of 3,000,000 Xtract shares for 18 month period Already have a SAMREC measured and indicated resource (Measured resource of 182kt @ 0.54% Cu and inferred resource of 125kt @.80% Cu) – as
Slide 17: Conclusion
Conclusion &y Xtract RESOURCES PLC
Slide 18: The Bottom Line
The Bottom Line Chepica mine will deliver a 35% profit margin within 3 months Start mining of Salvadori gold bearing reef on surface at Chepica mine Start on-reef development of Colin and Francisco prospects at the Chepica mine When agreement is reached start construction of Concordia heap leach cop
Slide 19: Corporate information & Share statistics
Corporate information & Share statistics Major Shareholders % Holding Market Data (as at 25 March 2015) Polar Star Mining Corporation 13.05 Exchange AIM Jarvis Investment Management 7.91 Symbol XTR Shares in Issue 3,580m Barclayshare Nominees 6.94 Market Cap £8.5m TD Direct Investing Nominees 6.42 T
Slide 20: Your team: The Board & Management
Your team: The Board & Management 20
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