Xtract Resources “looking at a number of opportunities to enhance shareholder value outside Mozambique but within southern Africa”

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Xtract Resources “looking at a number of opportunities to enhance shareholder value outside Mozambique but within southern Africa”

4:32 CAT | 30 Sep 2017

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Xtract’s interim numbers showed an increase in the group’s cash reserves to £0.54mln at the period end, up from £0.18mln at the end of 2016, with its net assets increasing to £8.36mln from £6.56mln

The group saw its net losses reduced to £0.64mln for the first half, down from £5.24mln at the same stage a year earlier

Xtract Resources PLC’s (AIM:XTR) executive chairman, Colin Bird has revealed that the gold exploration and development company is “looking at a number of opportunities to enhance shareholder value outside Mozambique but within southern Africa”.

In a statement accompanying the AIM-listed firm’s results for the six months ended 30 June, Bird added that “the generation of surplus cash to overhead will allow us to pursue additional growth opportunities.”

The firm raised £1.88mln via an equity placing during the first half, and garnered a further £1.3mln in another placing after the period end.

The group saw its net losses reduced to £0.64mln for the first half, down from £5.24mln at the same stage a year earlier, as its operating expenses decreased to £0.46mln from £1.25mln.

Bird said: “The Period under review was progressive on all fronts resulting in a company which has focus and a clear direction for the future.

“All our efforts were directed towards debt reduction, technical and financial evaluation of the Manica project and the reduction of overheads and corporate costs.”

He noted that Xtract has completed a second alluvial contract deal on the eastern part of its Manica licence area in Mozambique and signed an agreement with Sino Minerals Investment Company Ltd which will see operations contracted to start in the middle of October this year.

Bird concluded: “The net contribution from these alluvial projects should be very significant allowing the Company to move forward with the hard rock mine construction and to seek further opportunities, generally in southern Africa.”

Source: Proactive Investors UK