Exco Resources (ASX: EXS) is extremely well funded after the recent sale of the Cloncurry Copper Project in north-west Queensland to Xstrata for $175 million.
Post the sale of the project, Exco’s focus will be to add further value to the company's assets, with the board having already approved an initial exploration program of up to $10 million for the company's remaining tenements in the Cloncurry, Hazel Creek, and Soldiers Cap project areas.
Exco Resources cash backed and on the move, shares jump 10.53%
31st Jan 2012, 11:35 pm
(ASX: EXS) shares rallied 10.53% to A$0.21 today on the exchange of nearly 4.5 million shares as of 2.19pm (AEDT).
The company is certainly well funded with $58.6 million, or around $0.164 per share, cash in hand at the end of the December quarter.
Strong cashflows from the White Dam Gold Project in South Australia continue to boost Exco’s bank balance. During the December quarter the company received $9.5 million in revenues for the three months at an average price of A$1,612 per ounce.
Again gold production exceeded expectations with 8,421 ounces produced as recovery levels from the leach process continue to exceed initial predictions.
Meanwhile, Exco is nearing the start of mining at the Vertigo gold project in the Drew Hill area of South Australia.
The company has strengthened the development of the project with a $1.3 million commitment on exploration by joint venture partner (ASX: PLY) in exchange for an increase in interest to 50%.
Importantly, this will allow Exco to continue aggressive exploration in Queensland but not at the detriment to the White Dam region in South Australia.
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