Fourth quarter 2022 production update

RNS Number : 5568V
Xtract Resources plc
06 April 2023
 

 

 

For immediate release

6 April 2023

 

Xtract Resources Plc

("Xtract" or the "Company")

Fourth Quarter 2022 Production Update

 

The Board of Xtract Resources Plc ("Xtract" or the "Company") announces the preliminary unaudited results for all alluvial and other hard rock mining contractors for the Manica Concession as well as production at Fair Bride, for the three-month period ended 31 December 2022 (the "Period").

 

Highlights

· Total mining contractor gold production excluding Fair-Bride of 49.83Kg for the Period, equivalent to approximately 1,602 ounces

· Total of 8.37Kg (equivalent to approximately 269 ounces) attributable to Explorator

· Value of Explorator share of gold produced US$462,292

· Explorator share of gold sales in period of 433 ounces

· Combined attributable revenue to Explorator from gold sales and other income for the Period amounted to US$740,280

· Mining contractor gold production from the Fair Bride deposit of 79.15Kg for the quarter, equivalent to approximately 2,546 ounces (Increase of 43.84Kg from the prior quarter)

· Preliminary mining contractor gold production from Fair Bride deposit of 123.68kg for Q1 2023, equivalent to 3,976 ounces)

 

 

Colin Bird, Executive Chairman said : "Alluvial production is now almost coming to an end which is coinciding with the ramp-up of production from the Fair Bride operation. Our income from Fair Bride will be well in excess of alluvial income, and we look forward to the ramp-up proceeding to plan. We are currently identifying fringe resources of oxides and embarking on district exploration both for oxides and sulphides. We have commenced a study to extend the plant to treat all sulphides which will give us the flexibility to treat all materials and exploit the Fair Bride deposit to maximum effect. Now that the Fair Bride operation has settled and the capital investment has been completed, we plan from the 2nd Quarter (i.e., the three months ending 30 June 2023) to report quarterly on Fair Bride's operation and financial results."

 

Production summary

Preliminary unaudited results for both the alluvial and hard rock mining contractors for the Manica Concession for the three-month periods ended 31 December 2022, September 2022, 30 June 2022 and 31 March 2022, are set out in the table below.

 

The Company is also pleased to report on significant progress at the recently completed plant in Manica, Mozambique.  On 21 July 2022, the Company announced that Mutapa Mining and Processing, LDA ("MMP") poured the first gold from ore that they mined at the Fair Bride concession. A total of 79.15Kg was produced during the fourth quarter of 2023. The Company remains confident for a positive 2023 as the Fair Bride operation matures and stabilises.

 

In addition to the information included in the table below, the notes provide a further breakdown of costs between operational costs, production tax and land resettlement costs. The table includes the unaudited financial results from the alluvial as well as the hard rock operations (other than Fair Bride hard rock operation in which Xtract has a 23 per cent. net profit share and which will from Q2 2023 be reported on a quarterly basis ).

 

 

4th Quarter

ended

31 December  

2022

 

3rd Quarter

 ended

30 September 

2022

 

2nd Quarter

 ended

30 June

2022

 

1st Quarter

 ended

31 March

2022

 

Production (ex-Fair Bride)





Total contractor gold production -alluvial (equivalent ounces) (Note 1)

769

1,074

1,344

1,370

Total contractor gold production- hard rock (equivalent ounces) (Note 2)

833

1,060

397

805

Total contractor gold production (equivalent ounces)

1,602

2,134

1,741

2,176

Total Explorator share of gold produced (equivalent ounces)(Note 3)

269

382

344

425

Production - Fair Bride

 

 

 

 

Total gold production - Fair Bride (equivalent ounces)

2,546

1,136

-

-

 

 

 

 

 

Sales and income (ex- Fair Bride)

 

 

 

 

Value of Explorator share of gold produced (value in US$)(Note 5)

U$462,292

U$651,641

US$639,271

US$794,797

Explorator share of gold sold (equivalent ounces) (Note 4)

 

433

343

465

384

Explorator attributable revenue from gold sales

US$740,280

US$534,899

US$642,115

US$617,422

Other Income

-

-

-

US$37,866

Direct Operational Production Costs (ex-Fair Bride)

 




Explorator total direct operational production costs (Note 1)

US$189,986

US$161,789

US$179,969

US$172,460

Total Costs (ex-Fair Bride)

 




Explorator total direct production costs (Note 2)

 

US$235,917

US$285,426

US$321,401

US$251,045

Cost per ounce of gold produced

US$876

US$747

US$934

US$590

 

 

 

Notes:

 

Note 1:  

 

Total contractor gold production-alluvial (equivalent ounces)

4th Quarter

ended

 31 December

2022

3rd Quarter

ended

 30 September

2022

2nd Quarter

ended

 30 June

2022

1st Quarter ended

31 March  2022

3990C *

177

512

852

986

 7569L **

593

562

491

385

 

*Licence 3990C Mining Concession (Alluvial & hard rock), Manica Province.

**Licence 7569L Mining Concession (Alluvial), Manica Province.

 

Note 2:

 

Total contractor gold production-hard rock (equivalent ounces)

4th Quarter

ended

 31 December

2022

3rd Quarter

ended

 30 September

2022

2nd Quarter

ended

 30 June

2022

1st Quarter ended

31 March  2022

Guy Fawkes

219

600

228

213

 Boa Esperanza

614

460

169

592

 

Note 3:

 

Total Explorator share of gold produced (equivalent ounces)

4th Quarter

ended

 31 December

2022

3rd Quarter

ended

 30 September

2022

2nd Quarter

ended

 30 June

2022

1st Quarter ended

31 March  2022

3990C

113

97

171

195

 7569L

Guy Fawkes

Boa Esperanza

33

33

90

107

109

69

93

55

24

73

51

107

 

Note 4:

 

Explorator share of gold sold (equivalent ounces)

4th Quarter

ended

 31 December

2022

3rd Quarter

ended

 30 September

2022

2nd Quarter

ended

 30 June

2022

1st Quarter ended

31 March  2022

3990C

169

136

157

190

 7569L

Guy Fawkes

Boa Esperanza

137

127

-

 

196

11

-

190

77

41

36

37

122

 

 

Note 5:  Calculation based on the number of ounces produced during each month of the quarter multiplied by  the closing month end spot rate. 

 

Note 6:  Direct operational production costs include and not limited to Explorator salaries, rent, vehicles expenses and utilities for both alluvial and hard rock operations.

 

Note 7:   Total costs comprises direct operational production costs plus total Production Tax and Land Resettlement Costs as detailed below:

 

 

 

4th Quarter

ended

 31 December

2022

3rd Quarter

ended

 30 September

2022

2nd Quarter

ended

 30 June

2022

1st Quarter ended

31 March  2022

Production Tax

US$44,674

US$123 019

US$98 386

US$74 807

Land resettlement costs

US$1,267 

US$  619

US$43 046

-

 

 

Note 8:

 

Explorator total direct operational production costs

4th Quarter

ended

 31 December

2022

3rd Quarter

ended

 30 September

2022

2nd Quarter

ended

 30 June

2022

1st Quarter ended

31 March  2022

Alluvial deposits

US$117,513

US$104 013

US$119 480

US$107 475

 Hard rock deposits

US$72,673

US$57 776

US$60 489

US$64 985

 

Note 9:   Alluvial deposits are the natural concentration of heavy minerals caused by the effect of gravity on moving particles. Various natural actions known as weathering can and did dislodge gold from its hard rock containment. Once the gold is liberated it migrates by gravity and water flow into larger or subsidiary streams. The net effect of this migration into streams is concentration of the gold into gold ore bodies. 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 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. 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

www.xtractresources.com

Beaumont Cornish Limited

Nominated Adviser and Joint Broker

Roland Cornish

Michael Cornish

Felicity Geidt

+44 (0)207628 3369

www.beaumontcornish.co.uk

 

Novum Securities Limited

Joint Broker  

 

Jon Bellis

Colin Rowbury  

 

+44 (0) 207 399 9427

www.novumsecurities.com  

 

 

ENDS

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