My understanding is that AKM is a coking coal play. The shares jumped after South Gobi Resources dipped in a large amount of equity. South Gobi already has plenty of thermal coal production in the area which is being ramped up, so wouldn't imagine their first priority is to develop more thermal coal.
Comparing coal quality between the thermal coal targets with the tiny amount of currently available data is fraught with difficulty.
My guess is that HUN and XAM coal quality is probably in the same ball park marketing wise, but that is a risky assessment because there is very little published data. The best material available regarding Xanadu's Galshar is on page 28 of the prospectus. You will need to check HUN reports to make your own comparison.
Looking in the long term, even if a resource is 200 million tonnes plus at an average quality, the most valuable sections will probably be higher, mineable early, and represent many years of production, making those sections valuable and the lesser sections almost worthless in terms of NPV.
As no-one knows yet what the best areas of their leases can produce there is not much point trying to make a fine comparison at this stage. More important is the will of the operators to take their resource to the next stage. We can each form our own opinions of that. The small players currently attracting attention on the ASX each have their own strengths that make any of them a reasonable bet. Why not go for the trifecta.
XAM Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
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