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Beaufort Securities Breakfast Alert: Xtract Resources PLC

Beaufort Securities Breakfast Alert: Xtract Resources PLC

Today's edition features:

• Xtract Resources (LON:XTR)




The FTSE-100 finished yesterday's session 0.30% higher at 7,556.24 whilst the FTSE AIM All-Share index was up 0.50% at 1,029.81. In continental Europe, the CAC-40 finished 0.03% lower at 5,360.81 whilst the DAX was 0.09% higher at 12,982.89.

Wall Street

In New York last night, the Dow Jones closed 0.14% lower at 22,841.01, the S&P 500 eased 0.17% to 2,550.93 and the Nasdaq fell 0.18% to end at 6,591.51.


In Asian markets this morning, the Nikkei was up 1.07% at 21,179.58 and the Hang Seng added 0.03% at 28,468.76.


In early trade today, WTI crude was 0.67% higher at $50.94 per barrel and Brent was up 0.6% at $56.59 per barrel.



BCC: 'Robust' manufacturing fails to boost UK growth

The UK economy grew at a muted rate in the third quarter of 2017 despite progress in the manufacturing sector, the British Chambers of Commerce says. The number of manufacturers reporting improved domestic sales and orders rose in the quarter to its highest level since early 2015, the BCC said. Export sales and orders in the sector also improved. But in services, domestic sales and orders remained static, as did the sector's employment expectations. The BCC said its survey also showed the prevalence of recruitment difficulties facing UK businesses, which worsened further during the quarter. Almost three-quarters of manufacturers reported difficulties hiring staff, and in services, the percentage rose to its highest since early 2016.

Source: BBC News


Company news

Xtract Resources (LON:XTR, 3.62p) – Speculative Buy

Xtract Resources announced yesterday an update on its alluvial mining contractors' progress on the Manica alluvial concession in Mozambique. Omnia, the contractors operating on the western portion of the licence, have stockpiled 40,000t of alluvial material ready for processing and have exposed an additional 30,000t of material in a pit. The project has achieved commercial production with the first payment expected by the end of November.

Our View: Achieving commercial production on the western half of the Manica Alluvial production is a significant milestone for the company. This means that Xtract can expect its first payment shortly. The above news follows the recently declared commercial production from the eastern half of the Manica concession where Xtract's other contractor, Sino Minerals, has recovered gold and the production of the first dore bar is expected imminently. We look forward to steady state operation from both plants and the first payment to Xtract. In the meantime, we maintain our Speculative Buy rating on the stock.

Beaufort Securities acts as a corporate broker to Xtract Resources PLC

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