Xtract Resources (XTR) H1 2024 earnings summary

Executive summary

• Expanded land position in Zambia's Western Foreland district to five licences, totaling 173,586 hectares, via joint ventures, targeting high-grade copper exploration.

• Entered a new joint venture for the Silverking Mine in Central Zambia, prospective for high-grade IOCG copper mineralisation.

• Disposed of 23% shareholding in the Manica Gold Project, Mozambique, for up to US$15 million in staged payments by 2027, to focus on copper and gold projects in Zambia and Australia.

• Advanced feasibility and ore pre-concentration studies at the Bushranger Copper-Gold Project in Australia, with positive preliminary test results.

Financial highlights

• Revenue from gold sales and other revenue were both £Nil for H1 2024, compared to £0.39m and £1.67m respectively in H1 2023.

• Net loss of £0.16m for H1 2024, compared to a profit of £0.62m in H1 2023.

• Administration and operating expenses reduced to £0.82m from £1.05m year-over-year.

• Cash position improved to £2.00m as of June 2024, up from £0.63m at FY 2023.

• Total assets at £20.26m as of June 2024, down from £21.93m at FY 2023.

Outlook and guidance

• Anticipates steady income from staged Manica disposal payments through 2027 to fund exploration.

• Directors expect net operating cash inflows and sufficient working capital for the next twelve months, with no additional financing required.

• Priority exploration zones in Zambia expected to be drill-ready by year-end.