Xanadu Mines (XAM) Q1 2025 TU earnings summary

Executive summary

• Transitioned Kharmagtai project operatorship to Zijin, focusing on next-stage planning and value maximization strategies including funding, put options, and potential corporate transactions.

• Entered exclusivity with Zijin to extend the put option period and continue discussions on various corporate transactions.

• Completed a share placement to Zijin subsidiary, raising A$1.46M during the quarter.

• Well-funded with A$3.73M in cash at quarter end, despite higher than usual outflows due to JV payments and advisory costs.

Financial highlights

• Cash and cash equivalents at 31 March 2025 were A$3.73M, down from A$6.16M at the previous quarter end.

• Net cash used in operating activities was A$1.81M; net cash used in investing activities was A$2.07M.

• Raised A$1.46M from equity placement; no new borrowings drawn.

• Estimated quarters of funding available at current outflow rates is 1.92.

Outlook and guidance

• Key upcoming activities include finalizing discussions with Zijin, commencing the Kharmagtai Bankable Feasibility Study, and securing BFS funding.

• Multiple funding pathways are in place, including put option execution, equity, debt, and hybrid securities.

• Expects lower cash requirements in future quarters as one-off costs subside.