Plenty cash, don’t need capital. Polished presentation, but this is not the problem. XAM lacks business savvy and nimbleness. Also slide 9 just shows lack of clarity on key valuation metrics. At Kharmagtai project XAM got to initial 85 % ages ago. This is 85 % of the 90 % of what they own. Ie 76.5 % economic interest. At this point XAM 76.5, local partner 13.5, Quok 10 %. They can then can dilute local partner to 5.6 % if local partner does not put in their 15 % of the 90 % ( 13.5 ) which would lift economic interest from 76.5 % to 85 % but has this detail been published of how they get from 76.5 % to 85 %. Are they free carrying the local partner here and how does this deal work. It’s related party. There are 2 partners too. 10 % free carry to Quok Group? and then the local director they can dilute down at the Mongol Metals JV level. Also at Red Mountain do the Japanese get 51 % of 90 % or is it 51 % economic interest. Last with Noble exiting, do they still have their life of mine marketing deal on Kharmagtai for 30 % of product ? It’s clarity on this stuff !
XAM Price at posting:
3.0¢ Sentiment: Hold Disclosure: Held
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