Xanadu Mines (XAM) Q2 2024 TU earnings summary

Executive summary

• Advanced Kharmagtai Copper-Gold Project PFS, targeting publication in Q3 2024, with strong project economics and a Maiden Ore Reserve to be released.

• Completed 4,880m of diamond drilling at Red Mountain, encountering significant shallow copper and gold mineralisation across four prospects.

• No lost time injuries or significant safety/environmental incidents reported.

• Appointed Bacchus Capital as strategic and project funding adviser for Kharmagtai.

• Released third annual Sustainability Report, reinforcing ESG commitment.

Financial highlights

• A$5.2 million in cash at 30 June 2024; Khuiten JV (Kharmagtai) held US$3.2 million for PFS completion.

• Net cash outflow from operating activities was A$1.1 million for the quarter.

• Net cash outflow from investing activities was A$1.2 million, mainly for exploration and evaluation.

• Estimated 2.23 quarters of funding available at current burn rate.

Outlook and guidance

• Kharmagtai PFS and Maiden Ore Reserve publication expected in early September 2024.

• Transition of Khuiten JV operatorship to Zijin Mining post-PFS, with Feasibility Study to follow in 2025.

• Next phase of Red Mountain exploration and commencement of Sant Tolgoi exploration planned for September quarter.

• Actively seeking funding for Feasibility Study, with interest from international debt providers, funds, and royalty streaming companies.