Xtract Resources' Chepica mine making good progress

It said the mine has reached its target of achieving profitability one month ahead of schedule in May 2015 and is on track to achieve a profit margin of 60% by the end of the third quarter.

Xtract said the mine looks set to make a monthly profit of $500,000 by the end of August 2015. While there will be some seasonal variations going forward, Xtract expects this level of profitability to be maintained on average in each quarter as per the pre-fundraising commitments to investors, it said.

In addition, the company revealed the mine's quarterly revenue from the third quarter onwards is likely to comfortably exceed its earlier estimate of $1.2m per quarter as per the pre-fundraising commitments to investors.

Chief executive Jan Nelson commented: “"We are absolutely delighted with the excellent progress made at Chepica over the past few months and that we are on track to exceed forecasted revenue and profit for Q3 2015, as we committed to investors as part of our fundraising.

The team has made excellent progress at Chepica and we intend to keep this momentum up as we develop out this exciting project."

At 13:56, shares were up 3.4% at 0.35p.