Proactiveinvestors recommends
Additional Information
Market: ASX
Sector: General Mining - Copper
EPIC: EXS
Latest Price: A$0.16  (-3.13% Descending)
52-week High: A$0.73
52-week Low: A$0.15
Market Cap: A$54.49M
1 year chart
digital-look imported chart image
1 day chart
digital-look imported chart image
Watchlist/Portfolio

Add to watchlist:

Only registered members can add into watchlist !

Register here !
Exco Resources
www.excoresources.com.au

Exco Resources Ltd has a clear development strategy for its highly prospective project portfolio. The portfolio currently includes the White Dam Gold Project in South Australia and the Cloncurry Copper Project in NW Queensland.

Full Exco Resources profile here
Is EXS a Buy, Sell or Hold?Get your FREE analysis of EXS
Pdf

Exco Resources to receive A$117,000 royalty on oxide ore mined at Mt Colin

1st Apr 2011, 6:34 am

Exco Resources (ASX: EXS) is entitled to a royalty of $A117,000 on oxide ore mined from its wholly owned Mt Colin deposit in the Cloncurry area of north west Queensland, as mining has now been completed.

The amount is payable by CopperChem Limited, a privately owned resource development company. Exco retains exclusive rights to the remaining resources at Mt Colin.

In addition to the Mt Colin royalty, Exco is entitled to a royalty (GA Royalty) on about 1.7 million tonnes of sulphide ore contained within the Great Australia resource in accordance with the Exco-CopperChem Alliance Agreement entered into in September 2009.

CopperChem has commenced mining at the Great Australia Mine with mining of sulphide ores from the open pit kicking off in the next 30 days.

The company said "under the terms of the GA Royalty, Exco is to receive $A6.00 per dry metric tonne of ore mined plus an additional $A0.06 per tonne for each $US0.01 by which the average copper price in a given six month period exceeds an indexed base price."

The current base copper price under the agreement is about $US2.06/lb. Based on current London Metal Exchange copper prices Exco estimate that the GA Royalty would be in the order of $A19.00 to $A20.00 per dry metric tonne of ore mined.

Mt Colin has a total Indicated and Inferred Resource of 1,490,000 tonnes at 2.47% copper.

On March 11 Exco announced it is enjoying some very healthy margins in gold production at the 75% owned White Dam project in South Australia, as operating costs remain under $500 an ounce while spot gold sits above $1400 an ounce.

Today Fox-Davies retained a buy recommendation on Exco with an unchanged target price of A$0.88 per share. Exco Resources last traded at $0.59, with the recommendation providing a potential 49% upside.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.