Xtract Resources (XTR) H2 2023 earnings summary

Executive summary

• Completed strategic shift from gold to copper, highlighted by the sale of a 23% profit share in the Manica gold project for up to $15m, enabling focus on copper exploration in Zambia and Australia.

• Acquired two copper exploration licenses in NW Zambia, with three more added post-year-end, totaling 173,586 hectares in the Western Foreland region.

• Entered a joint venture to earn up to 70% in the Silverking copper project in Zambia, targeting high-grade breccia pipe deposits.

• Bushranger copper-gold project in Australia advanced with positive mine optimization studies and ongoing pre-concentration test work.

Financial highlights

• Cash increased to £0.63m (2022: £0.19m); net assets at £19.89m (2022: £19.68m).

• Other operating income rose to £1.17m (2022: £0.67m); administrative and operating expenses reduced to £1.05m (2022: £1.35m).

• Net loss before tax from continuing operations was £0.17m (2022: £1.95m loss); profit for the year £0.64m (2022: £1.83m loss), driven by discontinued operations.

• Basic profit per share improved to 0.09p (2022: loss of 0.22p).

Outlook and guidance

• Focus remains on advancing copper projects in Zambia and Australia, with drilling in NW Zambia expected to commence in Q3 2024.

• Anticipates continued strong copper demand due to global electrification and supply constraints, supporting a bullish outlook for copper prices.

• Portfolio now balanced between exploration and near-term development, with further value accretion expected in the short to mid-term.