Jan Nelson – CEO of Xtract Resources – joined Nick Batsford and Zak Mir in the Tip TV studio to discuss Xtract’s mining projects in Chile and Mozambique, and what sets them apart from their competitors.
Redevelopment setbacks unlikely to hinder growth.
With the recent Earthquake in Chile upsetting production in their mine in Chépica, Chile, Xtract have had to divert funds in redevelopment of the mine which resulted in profits being revised to almost a tenth of original estimates. Despite this, Nelson is confident that they will be back on schedule within the next few months.
How do they differ from rivals?
Besides their Chépica mine, Xtract also have operations under development in Manica, Mozambique. Nelson believes that this has diversified their company, as future troubles that could strike one of their mines is unlikely to affect the other, and Xtract’s income stream will continue. The company, unlike many of their competitors, maintain a strong balance sheet, and no longer require the raising of capital from investors. This has given them an edge, says Nelson, as the funds required for covering redevelopments are already readily available.