XTRACT RESOURCES PLC — Earnings Release 2022

Jun 22, 2022

National Storage Mechanism | Additional information

RNS Number : 7730P

Xtract Resources plc

22 June 2022

For immediate release

22 June 2022

Xtract Resources Plc

("Xtract" or the "Company")

Production Update

The Board of Xtract Resources Plc ("Xtract" or the "Company") announces the preliminary unaudited results for all alluvial and hard rock mining contractors for the Manica Concession, for the three-month period ended 31 March 2022 (the "Period").

Highlights

·    Total mining contractor gold production of 67.67Kg for the quarter, equivalent to approximately 2,176 ounces

·    Total of 13.22Kg (equivalent to approximately 425 ounces) attributable to Explorator

·    Value of Explorator share of gold produced US$794,797

·    Gold sales in period of 384 ounces

·    Combined attributable revenue to Explorator from gold sales and other income for the Period amounted to US$614,257

·    Fair Bride continued to progress satisfactorily  

Colin Bird, Executive Chairman said: "The results for Q1 of this year were satisfactory, especially when one considers that the results were achieved during an aggressive rain and cyclone season. As at today's date, Fair Bride production has started with the introduction of low-grade ore to commission all parts of the processing circuit. We expect that by the end of Q3 Fair Bride should be up to full commercial production. The production will build up gradually as some of the gold gets locked up in the circuit and faults are identified and rectified. I look forward to production results from Fair Bride as well as from the alluvial and the small hard rock deposits ".

Production summary

Preliminary unaudited results for both the alluvial and hard rock mining contractors for the Manica Concession for the three-month periods ended 31 March 2022, 31 December 2021, September 2021 and 30 June 2021 and are set out in the table below. In addition to the information included in the table, the table below provides a further breakdown of costs between operational costs, production tax and land resettlement costs. The table includes results from the alluvial as well as the hard rock operations (other than Fair Bride hard rock operation).

	1st Quarter  ended 31 March 2022	4th Quarter  ended 31 December  2021	3rd Quarter  ended 30 September  2021	2nd Quarter  ended 30 June  2021
Production and Sales:
Total contractor gold production -alluvial (equivalent ounces)	1,370	2,306	1,416	427
Total contractor gold production- hard rock (equivalent ounces)	805	505	170	-
Total contractor gold production (equivalent ounces)	2,176	2,811	1,586	427
Total Explorator share of gold produced (equivalent ounces)	425	767	437	120
Value of Explorator share of gold produced (value in US$)(Note 3)	US$794,797	US$1,383,125	US$784,998	US$218,413
Explorator share of gold sold (equivalent ounces)	384	360	152	139
Explorator attributable revenue from gold sales	$617,422	US$589,914	US$220,737	US$213,576
Other Income	$37,866	US$24,343	US$153,044	-
Direct Operational Production Costs:
Explorator total direct operational production costs (Note 1)	$172,460	US$180,791	US$142,786	US$130,697
Total Costs:
Explorator total direct production costs (Note 2)	US$251,045	US$258,523	US$210,344	US$150,681
Cost per ounce of gold produced	US$590	US$338	US$474	US$1,258

Note 1:     Direct operational production costs include and not limited to Explorator salaries, rent, vehicles expenses and utilities for both alluvial and hard rock operations

Note 2:   Total costs comprises direct operational production costs plus total Production Tax and Land Resettlement Costs as detailed below:

	1st Quarter ended 31 March   2022	4th Quarter ended 31 December   2021	3rd Quarter ended 30 September   2021	2nd Quarter ended  30 June  2021
Production Tax	US$74,807	US$77,732	US$33,743	US$19,948
Land resettlement costs	-	-	US$33,815	-

Note 3:   Calculation based on the number of ounces produced during each month of the quarter multiplied by

the closing month end spot rate.  

Note 4: Presence of gold in alluvial deposits is unpredictable and therefore operational results will vary month-to-month.

Further details are available from the Company's website which details the company's project portfolio as well as a copy of this announcement: www.xtractresources.com

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.The person who arranged for the release of this announcement on behalf of the Company was Joel Silberstein, Director.

Enquiries:

Xtract Resources Plc	Colin Bird, Executive Chairman	+44 (0)20 3416 6471 www.xtractresources.com
Beaumont Cornish Limited Nominated Adviser and Joint Broker	Roland Cornish Michael Cornish Felicity Geidt	+44 (0)207628 3369 www.beaumontcornish.co.uk
Novum Securities Limited Joint Broker	Jon Bellis Colin Rowbury	+44 (0)207 399 9427 www.novumsecurities.com

ENDS

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