Xanadu Mines (XAM) Q3 2024 TU earnings summary

Executive summary

• Kharmagtai Copper-Gold Project PFS completed, confirming a world-class, low-cost, long-life mine with a 29-year LOM and robust economics, including a 21% IRR and US$930M post-tax NPV at US$890M pre-production capex.

• Maiden Ore Reserve and updated Mineral Resource Estimate published, with significant increases in contained copper and gold due to a lower cut-off grade.

• Operatorship of Kharmagtai transitioned to Zijin Mining Group, with Xanadu focusing on Sant Tolgoi and Red Mountain exploration.

• Exploration commenced at Sant Tolgoi Copper-Nickel Project, with early results expected in Q4 CY2024.

Financial highlights

• Kharmagtai PFS base case: US$930M post-tax NPV (8%), 21% IRR, 4-year payback, US$890M pre-production capex.

• Average annual production: 75kt copper and 165koz gold over 29 years; total LOM output: 2.2Mt copper, 4.8Moz gold.

• First quartile C1 cash cost of US$0.70/lb Cu for first 8 years, second quartile US$1.30/lb Cu over LOM.

• Xanadu held A$3.3M in cash at 30 September 2024.

Outlook and guidance

• Bankable Feasibility Study for Kharmagtai to commence Q1 2025, targeting construction by Q2 2026.

• Sant Tolgoi exploration results and next phase planning expected in Q4 2024.

• Xanadu expects to maintain more than two quarters of cash runway, with cost base reduced post-Kharmagtai PFS.