XAM is in a tough space and the SP is reflecting that.
Their project to-date hasn't thrown up spectacular results (e.g. Nevsun) and whilst it is OK, in this market its a big "meh". On top of this the location is less than attractive in Mongolia (e.g. look at the issues RIO is having/ had with the Government). The Cu sector has now entered a bear market and no one wants to touch the space outside of some potential near-term M&A targets.
XAM have c. 3 Quarters of cash in the kitty at the current burn rate and today's announcement seems to be an effort to arrest the SP decline.
Whilst Cu is in a bear market and XAM is well off the M&A radar, I simply cannot see a reason to hold it at present.
What is a near term catalyst for XAM specifically ??? Can't see one personally.
In terms of developers, I would suggest that SOLG (held via DGR) is a much better candidate due to the near term scheduled release of an upgraded M&A, Newcrest's cornerstone shareholding and potential for a lobbed takeover offer.
Cheers
John
XAM Price at posting:
11.0¢ Sentiment: None Disclosure: Not Held
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