Ann: Xanadu Acquires Javkhalant Project as part o, page-3

re: Ann: Xanadu Acquires Javkhalant Project a... I agree nonstop247. If the drill reports are top of expectation we will see a lift in the market cap. But after watching the Mongolian scene for the last couple of years, I don't see it reaching the size of the other companies.

There is a big difference between XAM and the others. That is the intention or not to list as early as possible in Hong Kong. XAM spent valuable resources trying to do that before the GFS ie before the ASX listing. It is significant that XAM has veered away from that strategy. On the other hand, it is the stated strategy of the others.

So not needing early (permature?) cash flow, XAM looks like it will stick to the time proven conservative mining practice of exploration, pre-feasibility, and feasibility, before any development. The other companies are taking the riskier path to become early miners and that is being done less for cash flow and more to meet the criteria for a Hong Kong listing, ie the need to be a company reporting an annual profit.

If I am correct, there is more short term upside but more risk in the other companies, and the opposite applies for XAM. We all know the consequences of a badly put together or poorly financed mine: complete loss of value for shareholders.

The company is not at the stage of attracting institutional investment, and it is not as sexy as other Mongolian plays for short term investment. It is at the stage where marketing it is the most difficult, and certainly not a priority for the operators at the moment.

If the first coal quality report (promised in early July but not yet to hand) and subsequent drill reports from Nuurstei are good, the SP reaction afterwards will test this analysis.