Hi Mate XAMXAM is the unloved Mongolian stock, which IMO is due...

Hi Mate

XAM
XAM is the unloved Mongolian stock, which IMO is due to the fact they have no coking coal like the others (HUN,AKM). Also is very poorly supported stock which i believe is due to the lack of promotion by management. All that aside it has some very good potential mainly due to the recent JV with the Nobel group, in which they will target coking coal and iron ore. Basically what AKM is currently doing, the key factor here is that they are very well positioned to take advantage of this JV.

* Good connections in Mongolia
* Operating in the Country for a long period of time
* Very healthy cash balance 28 million
* 50/50 cost split for new acquisitions
* Key partner in the coal industry

XAM's coal is only sub bituminous low and high grade thermal coal. Potential for open pit on their main deposit, scoping study under way currently. The key price driver from here on in IMO will be the Nobel JV when progress is made in the coking coal and iron ore projects we will see this move IMO.
Until then we may still see some pain with the way market conditions are but the stock is very undervalued at current levels.

CLR & WAL

CLR has had aloft of delays of late and bank of america moving off the register didn't help things either. They have good potential due to access to infrastructure and port facilities. Their current resource of 92mt requires alot more drilling for the scoping and BFS as allot of the resource is in the inferred category. Small exploration upside on that project but the remaining areas have an exploration target of approx 500mt and the new lease they picked up with EOC also looks very prospective for coking coal.

Coal quality is on par if not better than AKM, lower sulphur and volatile numbers on the unwashed coal but the ash content is a little high. Wash results are need to see what grading the coal will be but IMO will be on par if not better than AKM provided that the ash numbers can be brought into check. Coal seams are no where near as good as something like AKM, CLR has one main middle seam which is approx 10m thick running through the tenement with smaller seams above and below ranging from .5m to 3m. At this stage looks like they have the potential for open pit mining but it will eventually head underground due to the resource structure.

WAL is also prospective for coking coal with one of it leases butting onto Saraji. They also have several other licences that are prospective for coking and thermal coal. WAL has very few shares on issue but also minimal cash approx 3.5m. But any success by CLR will have a good impact on the WAL share price and company, the maiden drilling campaign on the Dysart lease shows the most promise. Also the stock has held up quite well considering market conditions mainly due to the lack of interest of holders to sell. Hope this helps

GB