XAM - Xanadu Mines

[Sean K]

Still watching this ?day by day. Looks like it might have started a bottom. But, it still looks like a giant ?

I flipped a coin and heads came up. Time for another short term risk play on this turkey with flees.

 

[greggles]

I just can't get past the Mongolia aspect. It's not Africa, but Mongolia is very different culturally and politically.

RIO is having issues there: https://www.mining.com/rio-tinto-to-cut-rates-on-loans-to-mongolia-for-oyu-tolgoi-expansion/

 

[Sean K]

I just can't get past the Mongolia aspect. It's not Africa, but Mongolia is very different culturally and politically.

RIO is having issues there: https://www.mining.com/rio-tinto-to-cut-rates-on-loans-to-mongolia-for-oyu-tolgoi-expansion/

Absolutely, but heads came up. So, I'm committed.

 

[peter2]

It gets very cold in Mongolia during winter. Keep your yak skin coat tightly closed.

Agree, it's a nice HVBB in XAM but Mongolia is a no trade for me.

 

[Sean K]

Absolutely, but heads came up. So, I'm committed.

Well, I flipped again and tails came up. So, back to the bleachers.

 

[Sean K]

I've thrown heads this time so time to top up and see what this flee bag can do in the lead up to updated MRE. Looks like some signs of life appearing and a little double bottom down there looks solid. Woof.

 

[Sean K]

Quarterly out and nothing to get excited about except they're claiming to now have only $7m in cash. Had over $10m just 2 weeks ago. Maybe they paid out some bonuses... So, CR is on the horizon.

JOGMEC bailing on Red Mountain is disappointing. Shows clear lack of belief in its prospectivity. Unless they just have higher priorities.

I think anyone following this will know there's going to be a significant resource upgrade before the end of the year that will put them into the top few undeveloped copper deposits in the World not owned by a major. But, I reckon the only thing that's going to put this on the map is if they find another deposit at Kharmagtai that will significant raise the tonnage to over the 1Bt mark. Perhaps in the gap between Stockwork Hill and Zaraa in the blue square below. Plus, they need a high grade zone somewhere to be over 100Mt. There's every chance that could be at the next MRE update, but who knows.

And, yes, yes, it's Mongolia.

 

[Sean K]

Email from the company today:


Xanadu Mines CFO will be in Sydney on Thurs 11th Nov & Fri 12th Nov. Please let me know if you’re available for a coffee meeting with both CEO Andrew Stewart and CFO Spencer Cole, or alternatively join us for a group lunch.

Here’s a brief background on XAM:

• Discovering & growing globally significant Mongolian copper assets. Both have mining licences, permitted water resource, with nearby power and rail infrastructure already in place. Flagship project is ~100km from Oyu Tolgoi Cu/Au mine.
• 1.9Mt Cu & 4.3Moz Au porphyry Mineral Resource Estimate (MRE) at flagship project, Kharmagtai. Kharmagtai MRE update coming 4Q’2021. Update will include further 61,500m drilling. Exploration program in last 2yrs has been multi-pronged and focussed predominantly on growing the high grade (HG) core.
• Kharmagtai MRE currently includes HG core of 54Mt @ 0.86% CuEq. Some of the great recent HG drill intersections not currently in MRE, incl 106m @ 2.47% CuEq (see slide 11 https://www.xanadumines.com/site/PD...tation121MiningInvestmentOnlineAPACConference)
• Open pit concept study was completed in April 2019, but given growing HG core, studies are investigating best way to develop and take advantage of HG core. HG core starts from surface and really starts kicking in at 300-400m (see slides 16, 17 & 31 https://www.xanadumines.com/site/PD...tation121MiningInvestmentOnlineAPACConference).
• Earlier stage high grade Cu/Au/Ag exploration project at Red Mountain which XAM recently become sole owner and operator. Red Mountain consolidation was the first step in XAM’s broader commercial strategy to consolidate and simplify ownership of its exploration assets in Mongolia.
• Recently released its first ever Sustainability Report, which provides XAM’s commitment to ensuring it maintains and strengthens its social licence to operate in Mongolia.

 

[Sean K]

Still in the doldrums waiting for the JORC upgrade. MC languishing at $36m with $5m ish in the kitty. EV of $30m with potentially 1Bt Cueq in the ground, I still don't get it. Mongolia! Still holding some, praying to Inti that they remain solvent.

Liking the bottom on this chart at the moment.

 

[Sean K]

OK, if this doesn't get noticed, I give up.

An EV of about $30m with contained 3Mt Cu and 8Moz Au.

 

[Sean K]

OK, if this doesn't get noticed, I give up.

Where’s the I give up emoji?

 

[greggles]

Mongolia. The market has very little confidence in these kind of projects located in far flung locations. There's always sovereign risk and political risk. There's also infrastructure and cultural issues. The list goes on. Risk and complications. I won't invest in companies like this anymore.

 

[Sean K]

Mongolia. The market has very little confidence in these kind of projects located in far flung locations. There's always sovereign risk and political risk. There's also infrastructure and cultural issues. The list goes on. Risk and complications. I won't invest in companies like this anymore.

I just thought the numbers alone would be enough for a jizzem and I would have bailed anyway. So, I too am crossing Pongolia off my list, never to be seen again. I did want to do the Trans Mongolian railway, so I’ll have to switch that to the Trans Siberian, if we’re not at war with China and Russia at the time.

 

[Sean K]

Finally a little movement. Could the bottom be in?

 

[Sean K]

Shot up 20% yesterday before being halted for the results of a scoping study. Lose lips. Will be interesting to see the economics.

 

[Sean K]

This is good news for longer term holders who have probably taken the opportunity to bail.

 

[debtfree]

Time for a chart update. Heading in the right direction now with some interest, nice breakout yesterday with good volume for the 1st day of the week.