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Xtract Resources is accelerating consolidation of the Manica area

The company is currently discussing with various contractors new contracts or revised contracts for the newly apportioned concessions in the area of the Manica mine in Mozambique

Gold nuggets
"The gold price over the period under review has declined somewhat, which we consider is a function of reduced geopolitical tension and increased financial and political stability," said executive chairman, Colin Bird

Xtract Resources PLC (LON:XTR) said in its half-year report the alluvial mining operations at its Manica concession remained cash positive during the period.

Total alluvial production amounted to 1,200 ounces (oz) in the first quarter and 1,703 oz in the second quarter.

Progress continues to be made with monthly performance, the company added, as it posted a loss before tax of £408,000 on revenue of £460,000, compared to a loss the year before of £642,000 on zero revenues.

READ Xtract Resources updates on Manica collaboration agreement with Omnia Mining​

Xtract ended the first half of 2018 with cash of £1.01mln, down from £1.66mln at the end of 2017.

The contract with Moz Gold was terminated during the Period and the company is now in the process of taking possession of Moz Gold's plant over which it has security. Xtract is looking at a number of opportunities to employ this processing plant within the concession or elsewhere; although the processing plant is unsuitable for the recovery of fine gold at Manica, it is a substantial plant that will undoubtedly return value to the company or any acquirer of the plant, declared Colin Bird, the executive chairman of Xtract.

“The work to consolidate the Manica area is accelerating and the possibility of including Fair Bride in the agreement is being considered. We expect that the fourth quarter of 2018 we will prepare a three-year operation plan together with costings,” Bird said.

“As always, the company is active in seeking out other opportunities which may diversify commodity risk, and at time when we are debt free which will help to add further potential for significant shareholder value growth,” he added.

Quick facts: Xtract Resources PLC

Price: 1.175 GBX

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