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Xtract reports increase in quarterly gold production at Manica project in Mozambique

Wet weather meant production dipped in the first quarter, but those issues have now passed, although “difficult processing conditions” meant the amount of gold actually sold fell

Mozambique map
Xtract's 40%-owned subsidiary, Explorator, receives 25% of the gold produced at Manica

Xtract Resources PLC (LON:XTR) has reported a rise in second-quarter gold production from the Manica project in Mozambique.

Sino Minerals, a contract miner working on the project, produced a total of 1,703 ounces of gold in April, May and June – up 42% from the previous quarter (1,200 oz).

READ: Xtract seeks new contractor for western half of Manica concession

Xtract’s subsidiary Explorator receives 25% of all the gold produced, meaning its share this time was around 426 oz (Q1: 297 oz).

But problems processing the gold meant only 283 oz of Explorator’s portion of the precious metal was sold, bringing in US$291,000 (Q1: US$333,000).

As Xtract owns a 40% stake in Explorator, its take-home pay was US$116,400 (Q1: US$133,200).

“These results demonstrate an increasing trend in quarterly production,” said Xtract’s executive chairman Colin Bird.

“The 1st quarter was adversely affected by the rainy season and difficult processing conditions in the West. The 2nd quarter was rid of the rains but was affected by difficult processing conditions as a result of fine gold and erratic gold occurrence.

He added: “We have taken the decision to employ different contractors for the terraces and adjacent to the river alluvials and the appointment is expected to be announced shortly.

“Since alluvial production commenced in 2017, Explorator has been self-funding and we are encouraged by production levels being maintained by one contractor.”

Xtract shares fell 6.9% in afternoon trading to 1.21p.

Quick facts: Xtract Resources PLC

Price: 1.175 GBX

LSE:XTR
Market: LSE
Market Cap: £5.15 m
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