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Xtract Resources reports increase in quarterly gold sales from Manica project

“We continue to address key areas of performance and we expect improved results month-on-month," said Xtract boss Colin Bird

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Xtract is adapting its operational approach to alluvial gold at Manica

Xtract Resources PLC (LON:XTR) reported an increase in first quarter gold sales from the Manica project in Mozambique despite production taking a hit from heavy rainfall.

Xtract’s share of gold revenue and costs from the project is 40% under a collaboration agreement between its subsidiary Explorator and Nexus Capital Limited signed last June.

The company said the total combined attributable income from gold sales rose to US$333,000 in the three months ended March 31, compared to US$218,000 the previous quarter.

READ: Xtract Resources strikes new deal with contractor for Mozambique gold operation

Its share of attributable income from gold sales rose to US$133,200 from US$87,200.

Explorator’s share of gold sold increased to 314 ounces from 210 ounces even as its share of gold production fell to 297 ounces from 319 ounces.

Total contractor alluvial gold production dropped to 1,200 ounces from 1,279 ounces.

"Alluvial production in the first quarter was disappointing, although real progress was made, which was frustrated by prolonged heavy rains,” said Colin Bird, chairman of Xtract.

“One alluvial mining contractor was partially able to combat the effects of rain, whilst the other alluvial mining operator (using traditional alluvial processing methods) was unable to produce for a significant part of the quarter.

“We continue to address key areas of performance and we expect improved results month-on-month.”

Bird added that Xtract is adapting its operational approach to the alluvials, based on what it has learned over the past six months.

Xtract is also considering different mining methods for the terraces, which require deeper mining and often produce large nuggets that can mitigate lower average grades, he said.

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Price: 1.175 GBX

LSE:XTR
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Market Cap: £5.15 m
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