Xanadu Mines (XAM) H1 2024 earnings summary

Executive summary

• Advanced Kharmagtai Copper-Gold Project PFS, funded by US$35M JV with Zijin, on track for Q3 2024 completion.

• Increased Kharmagtai resource to 3.8Mt Cu and 9.3Moz Au, driven by new drilling and updated reporting criteria.

• Completed 4,880m of discovery drilling at Red Mountain, identifying shallow mineralisation for follow-up.

• Entered binding term sheet for up to 80% of Sant Tolgoi Cu-Ni project in Western Mongolia.

• Completed equity placement to Zijin, raising $835k, and appointed Bacchus Capital as strategic adviser.

Financial highlights

• Loss after tax for H1 2024 was $3.0M, down from $3.6M in H1 2023.

• Cash and cash equivalents at 30 June 2024 were $5.2M (31 Dec 2023: $7.3M).

• Net cash used in operating activities was $1.6M for H1 2024 (H1 2023: $3.0M).

• No dividends declared or paid during the period.

• 1,716,006,009 shares and 151,860,000 options on issue at period end.

Outlook and guidance

• Kharmagtai PFS due for completion in Q3 2024, with Maiden Ore Reserve and strong project economics expected.

• Assessing funding options for Feasibility stage, including debt, investment funds, and royalty streaming.

• Sant Tolgoi JV allows up to 80% earn-in, with US$1M exploration spend over two years.