Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
Shares of Xtract Resources PLC (LON: XTR) are trading sideways despite releasing positive results for the 2020 calendar year as markets remain unmoved.
The report highlights included a jump in revenues to £1.73 million compared to 2019’s £1.35 million. The miner’s expenses rose slightly to £2.09 million compared to last year’s £1.81 million. The company had £0.92 million in cash at the end of December compared to 2019’s £0.36 million.
Other vital updates included acquiring a 100% interest in the Bushranger Copper-Gold Project in New South Wales, Australia.
Xtract Resources also revealed it had made significant progress at its Eureka copper-gold project in Zambia, where exploratory pitting had encountered high-grade copper deposits suggesting that the known deposit could extend over 300m in length.
The miner had also signed two more agreements with mining contractors to develop the Guy Fawkes and Boa Esperanza hard rock gold deposits at Manica in Mozambique. In addition, the firm also signed an additional mining agreement to develop alluvial gold deposits at Manica.
Investors seemed unimpressed by the miner’s recent achievements, which in my opinion could be a mistake, given that, unlike many other junior mining companies, Xtract Resources has some assets in the production stages.
From a technical perspective, the company’s shares have recently bounced off a crucial support level and could be headed higher if the level holds over the coming days.
Bullish traders may have an excellent trade setup if the level holds, but only time will tell since Xtract’s shares have been on a prolonged decline and could fall further. Always use a stop-loss order in case a trade goes against you.
Remember that for you to have a successful trade, the broader market agrees with your trade thesis. Atop-loss order will protect your capital in case the markets move against you.
*This is not investment advice.
Xtract Resources share price.
Xtract Resources shares are still trading sideways despite releasing upbeat 2020 full-year results.
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