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Xtract looks for new opportunities following Manica sale

Xtract agreed to sell Manica in May, less than a year after it acquired the asset in Mozambique.

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Xtract aims to be profitable within 24 months

The disposal of its Manica asset will allow Xtract Resources (LON:XTR) to become a profitable gold producer, boss Jan Nelson says.

Xtract agreed to sell Manica in May, less than a year after it acquired the asset in Mozambique.

“The prime reason for the decision is that a strong cash position will allow Xtract to take best advantage of current opportunities in the mining resource space which may not be available or affordable by the year end,” Nelson said alongside Xtract’s 2015 results.

He added that the problems that had affected its Chepica mine in Chile were now resolved.

Revenues fell to £0.35mln (2014: £1.14mln) in 2015 as the problems, which included two deaths in the processing plant, affected production.

There was a net loss for the year of £4.58mln (2014: £2.95mln).

Nelson added it was making progress towards a 5-year plan of becoming profitable gold producer.

“We are 3 years into this journey and are confident that we will deliver on our vision within the remaining 24 months.

“We have resolved the flexibility issues at the Chepica mine and continue to invest capital to grow our production profile.”

Shares eased 2% to 0.15p.

Quick facts: Xtract Resources PLC

Price: 1.025 GBX

LSE:XTR
Market: LSE
Market Cap: £4.69 m
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