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Today's placing for £1,000,000 at 1.20p /share and what it's for

lse:xtr

#1

Bit of a shock to start with but soon realised most if not all placing shares have already been forward sold . The large volumes of recent days led me to believe option shares had been triggered above 2p /share but the volume soon changed my mind since Xtract Resources has issued only a few option shares .

So why was the need for the placing ? following paragraph taken from attached RNS :

The Board are particularly optimistic on the fundamentals for copper price increase and recognise the necessary and indeed accelerated expenditure will place the company in a strong short term position with its Zambian copper assets. Additionally, the fundamentals for gold indicate strength and as such returns from our Mozambique gold assets will also be assisted by this placing.
www.ii.co.uk/news/issue-of-equity-rnsLSE20190725160353_14163741

Following the placement of 83,333,333 new Ordinary Shares of 0.02p each the Company will have 438,508,052 Ordinary Shares in issue with voting rights. Not to many considering the last placement was done on 14th November 2017 .

I did a dummy top up and was asked 1.345p/share but read the L.S.E. bulletin Board before pressing the buy since Kat and her many pseudonyms ( user names ) was already bashing in style . Sadly not many sellers but I’ll see what happens tomorrow and hopefully get in as near the 1.20p /share as possible . Aye , my trading tranches might just about to be reloaded before the Sino 2 alluvial profits RNS … brilliant timing Mr.Colin Bird … :slight_smile:


#2

Managed to bag a few at 1.25. Let’s see where it goes now!
TP


#3

theprior
I got me first trading tranche back … hooray … 100k shares at 1.256p / share . Well chuffed with that . Strong resistance at 1.21p / share so maybe should have taken a few more …


#4

theprior
I was hopeful of getting same price as the placees , 1.20p /share . Then remembered a post I did a few days back stating Mr.Colin Bird is sure to have friends who would be building positions in the background . Yep , the placees may well be those friends hence majority of placement shares will be going into sticky fingered investors .

I did a dummy sell of all my long term hold shares before buying my 1st trading tranche and surprisingly the Market Makers would take the whole lot without Negotiated Trading ( N/T ) kicking in at a price of 1.21p/share . Leaving me to believing the placement was over subscribed and placees were in the market for more shares .

I’m a disciplined trader when it comes to my trading tranches hence only took the 100k shares at 1.256p /share . I may regret that but none to worried my long term hold position is quite substantial even compared to the large trades we’ve seen going through of late .

With Xtract Resources being debt free , due revenue figures for Sino 2 , alluvial processing in coming days along with the sale of remaining dorey bars held at Manica . I get the feeling the extra £1 million will allow copper Joint ventures in Zambia to progress at a much faster pace .

So we had a placement for £1 million and yet the company value shrank by 36% . Weird that since the money wasn’t raised to pay off debt , creditors . It was raised to further the expansion of Xtract Resources portfolio along with increasing it’s revenue stream . The Market Makers may have shorted the company but one things for sure XTR are worth far more now than prior to the placement at 1.20p /share . A month ago we could only dream of reaching that price hence I’m praying for a tree shake before the Sino 2 profits are revealed . Not forgetting an update on Omnia progress in the Guy Fawkes area of the Manica prospect may also be updated . Cherry picking from Guy Fawkes area would certainly help Omnia / Xtract Resources 50 /50 agreement as was mentioned by Mr.Colin Bird during one of his recent pod casts . He even highlighted how Omnia built a hard rock plant at great expense but had no hard rock to process … hum … we got plenty of that at the Manica prospect only a few miles away .


#5

Xtract Resources joint ventures in Zambia are based on some very dodgy deals and shady partners, take a look at the blog here: https://medium.com/@hannsjohn4/the-kalengwa-copper-mine-making-offers-that-can-be-refused-f28ba65cab48. The feeling locally in Zambia is that the mine has been seized by a famous local criminal who has been trying to get hold of it for years and the local senior Chief is questioning who owns the KPZ, the joint venture vehicle. It looks like it is all off shore in the British Virgin Islands. But more than this the pattern in the share price last week does look like classic insider dealing. As this piece says Colin Bird has a lot of answers to come up with fast, not least, why is he in business with a well known criminal: Shawi Fawaz - see this piece from anti-corruption outfit Zambia Watchdog https://www.zambiawatchdog.com/president-lungu-and-his-murderous-copper-thief-friends/


#6

stewartr8600

From experience the easiest way to lose money share trading is to believe Blogs , Broker notes , etc … they all have an agenda . It reads like a blog from the ex ( L.S.E. ) poster BuriedTreaure hence like I say best do your own research read the RNS’s , listen to Mr.Colin Birds podcast , attend Investor presentations and get a feel for the company and most of all the man running it .

Appears the Market makers are collecting shares at current price . Bought 600k shares @ 1.1215p / share which is being held back from publication . I wounder how many more buys are being accumulated to form a base at 1.20p /share which are also being held back from publication .


#7

Just noticed a typo … my 600k share buy was at 1.215p /share , sorry for the confusion . … P.S. still delayed from publication .


#8

Just noticed 2 after hours 100k shares were sold or appear that way but look closely . Second of the two is an XOFF trade which if you do some research reveals " The venue XOFF just means the trade was traded OFF a main exchange - probably over the counter between 2 parties without any exchange participation. " , In other words probably Market Maker - Market maker to shake out the un-research trader .

www.londonstockexchange.com/exchange/prices-and-markets/stocks/exchange-insight/trade-data.html?fourWayKey=GB00BYSX2795GBGBXASQ1

So it looks like Market Makers want your shares which I’m glad about since I’ve picked up two trading tranches in last two days . Be nice to pick up a few more before August 24th and placement shares come on to market . Shorts won’t be a Market Makers preferred tool after that since the placees would have done their research before taking up the placement shares .