Xtract Resources (LSE:XTR) has made further progress at its Amghas antimony project in north-west Morocco, appointing local mining and civil engineering contractors to undertake site preparation, improve mine access and develop supporting infrastructure. The appointments mark a transition from planning and test work towards physical development activities as the company prepares the project for initial production.
Development is centred on a proposed gravity processing plant with capacity of approximately 70,000 tonnes per year. Current workstreams cover mine preparation and production readiness, construction of the gravity plant and metallurgical flotation testing aimed at refining the project’s processing strategy and potential recoveries.
On-site activity has already included improvements to haul roads, while underground working areas have been cleaned, inspected and made safe ahead of future mining operations. These measures are intended to establish the infrastructure and operating conditions required to begin extracting and processing material once the development programme reaches the commissioning stage.
Amghas already holds a mining licence, while the environmental permitting process required for plant operations remains under way. Xtract is continuing construction activities in parallel so that the processing facility can move rapidly towards commissioning once the necessary environmental approval has been secured.
The project provides Xtract with exposure to antimony, a strategically important mineral used across a range of industrial and technology applications. Progressing Amghas towards production could allow the company to establish a position within developing critical mineral supply chains while generating value from its Moroccan asset portfolio.
Xtract’s broader outlook remains constrained by weak operating performance and deteriorating cash flow, although its relatively low level of debt provides some balance sheet support. Technical indicators are more constructive, with the shares trading above key moving averages and MACD remaining positive. Conventional valuation measures are less supportive while the company remains loss-making, resulting in a negative price-to-earnings ratio, with no dividend yield available.
More about Xtract Resources
Xtract Resources is a mining and exploration company focused on advancing mineral assets through exploration, development and towards production. Its portfolio includes projects in Morocco and other jurisdictions, with increasing exposure to strategically important commodities such as antimony. The company aims to develop commercially viable resources while positioning its assets within growing global critical mineral supply chains.
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