XAM - Xanadu Mines

[Sean K]

I'm not sure why this has recently tanked. The placement? Dunno.

Seems pretty cheap for the Cu and Au they already have shored up. Obvious potential for that to be significantly upgraded with the recent hits they've had.

I like the country manager's name too. Ganbayar Lkhagvasuren

 

[Sean K]

Not sure why, but I seem to be following a bunch of monster porphyry wannabies at the moment. These guys think they're going to be the next Oyu Tolgoi I think. Looks like there's going to be a lot of copper and gold in there.

 

[greggles]

Mongolia? Any political risk there or is it nice and stable? Grades are a little low and the mineralisation is at depth but it's still early days.

 

[Sean K]

Mongolia? Any political risk there or is it nice and stable? Grades are a little low and the mineralisation is at depth but it's still early days.

Rio built Oyu Tolgoi without any dramas that I can remember. It's just down the road. These porphyrys are all low grade but it's the overall tonnage and ease of mining that makes them valuable. This is about the same grades as Oyu and Cadia.

 

[greggles]

Rio built Oyu Tolgoi without any dramas that I can remember. It's just down the road. These porphyrys are all low grade but it's the overall tonnage and ease of mining that makes them valuable. This is about the same grades as Oyu and Cadia.

The market must have been expecting better results. XAM has opened down 8.33% and it looks like it's going lower.

 

[Sean K]

The market must have been expecting better results. XAM has opened down 8.33% and it looks like it's going lower.

Maybe cause that hole missed the bornite target. I thought it had found support previously at 0.056 too. Gapped well down from there. There's two other holes going into that target so not sure why the bail out.

 

[Sean K]

Down 16+% LOL. At 5c their MC is under $80m.

 

[greggles]

Down 16+% LOL. At 5c their MC is under $80m.

5c looks like support too. Will be interesting to see if it can stay above that level. It could get ugly if it doesn't.

 

[Sean K]

5c looks like support too. Will be interesting to see if it can stay above that level. It could get ugly if it doesn't.

Agree, .05 should be solid, then 0.04. Looking undervalued still on the basic numbers. JORC 2.6Mt CuEq = $23b in the ground. If it goes back to .04 I might be tempted.

 

[Sean K]

5c looks like support too. Will be interesting to see if it can stay above that level. It could get ugly if it doesn't.

Caught the knife for a short term trade. Looked to be overdone to me. Not sure of longer term, the market doesn't seem to be interested.

Fingers crossed H567 and 568 hit the gold rich bornite zone they were aiming for with H565 and 571 expands it.

 

[Sean K]

Fingers crossed H567 and 568 hit the gold rich bornite zone they were aiming for with H565 and 571 expands it.

Well, they missed hitting the gold rich zone AGAIN and have been caned. Although, it's a sea of red out there on my watch list.

Good news is the expansion of the other two lodes that will bode well for resource expansion.

Still think this has more upside and potential. They just need to hit that bloody bornite zone to better define the resource. Or, maybe it's just not there...

 

[greggles]

Still think this has more upside and potential. They just need to hit that bloody bornite zone to better define the resource. Or, maybe it's just not there...

Just wait and watch for it to find bottom. It will eventually. Then you can time your entry and hopefully trade it profitably. Agree it has potential, it's just had some bad luck recently.

 

[Sean K]

Just wait and watch for it to find bottom. It will eventually. Then you can time your entry and hopefully trade it profitably. Agree it has potential, it's just had some bad luck recently.

I've already bought a few. I know there's a few factors at play with a resource getting to a mine but 1.9Mt Cu and 4.3Moz Au (and growing) with a MC of $45m. Huh?

 

[qldfrog]

I've already bought a few. I know there's a few factors at play with a resource getting to a mine but 1.9Mt Cu and 4.3Moz Au (and growing) with a MC of $45m. Huh?

well resources got slammed in the last week, I bleed heavily;
XAM has been a player in my system for a while but was not in lately;
One worthwhile consideration is that it is located in Mongolia;
which for the initiated is as independent from China as the northern territory is from Australia; it is not; worse, BJ can afford doing things there that they would not even dare to do within proper China
And so at risk of spoliation and BJ power play.
west pay exploration costs and development, then if successful, assets get seized and a "new" collaboration contract drafted..thanks suckers..did not Rio Tinto got done that way only recently?
Anyway, I am sure I will see XAM appear again in my scans at the next resources rebound

 

[Sean K]

well resources got slammed in the last week, I bleed heavily;
XAM has been a player in my system for a while but was not in lately;
One worthwhile consideration is that it is located in Mongolia;
which for the initiated is as independent from China as the northern territory is from Australia; it is not; worse, BJ can afford doing things there that they would not even dare to do within proper China
And so at risk of spoliation and BJ power play.
west pay exploration costs and development, then if successful, assets get seized and a "new" collaboration contract drafted..thanks suckers..did not Rio Tinto got done that way only recently?
Anyway, I am sure I will see XAM appear again in my scans at the next resources rebound

Rio have been in Mongolia for years and own Oyu Tolgoi. Never heard of any issues there.

 

[qldfrog]

Rio have been in Mongolia for years and own Oyu Tolgoi. Never heard of any issues there.

View attachment 126257

Serious?

 

[qldfrog]

https://www.reuters.com/article/us-rio-tinto-lawsuit-turquoisehill-idUSKBN2BH1ZE

 

[qldfrog]

Mongolia threatens to terminate Rio Tinto's Oyu Tolgoi expansion

Doubts are growing over Rio's most important growth project, with the Mongolian government warning that returns are not attractive enough for it to proceed.

www.afr.com

 

[qldfrog]

Mongolia threatens to terminate Rio Tinto's Oyu Tolgoi expansion

Doubts are growing over Rio's most important growth project, with the Mongolian government warning that returns are not attractive enough for it to proceed.

www.afr.com

And thats just in the last 3 months, there was endless pressure before
I understand system traders do not care about actual assets, i know and apply that but investors should be aware when mines are in the middle of china -west trade wars or in IS territory.
The very worst is that it probably does not even matter for the SP?

 

[Sean K]

And thats just in the last 3 months, there was endless pressure before
I understand system traders do not care about actual assets, i know and apply that but investors should be aware when mines are in the middle of china -west trade wars or in IS territory.
The very worst is that it probably does not even matter for the SP?

Cripes, I hadn't seen that as I haven't been watching for years. I just assumed as the project was going ahead with billions been spent on it there were no problems. Better have a deeper look.