March 2023 Quarter Highlights
During the quarter ended 31 March 2023 (March
Quarter), Xanadu Mines Ltd (Xanadu or
the Company) completed its landmark investment
deal with Zijin Mining Group Co. Limited (Zijin),
following shareholder approval at the Extraordinary General
Meeting1 (EGM) and Zijin receiving regulatory
approval from the People’s Republic of China.2 This included the
Phase 2 placement resulting in Zijin as 19.4% shareholder in Xanadu
and the Phase 3 Joint Venture (JV) resulting in a
50-50 JV in Khuiten Metals, the Xanadu subsidiary which controls
the Kharmagtai Copper-Gold project (Kharmagtai).
This Strategic Partnership is a transformational step for the
Company, providing crucial funding to bring Kharmagtai to a formal
Decision to Mine and realise its value potential.
Operations
- Kharmagtai value uplift progressing
on all fronts.
- Pre-Feasibility Study (PFS) underway
focused on data acquisition including infill drilling and
metallurgical characterisation, water reserve exploration and
scenario modelling.
- Infill Drilling commenced with 4
diamond drill rigs including 30,000 metres of planned drilling and
a comprehensive geometallurgical programme.3
- Discovery exploration drilling
underway with 1 diamond drill rig targeting significant exploration
upside remaining on the tenement.3
Corporate
- Completed investment deal with Zijin
Mining Group and cash received on 10 March 2023.
- Receipt of approval from Xanadu
Mines Shareholders at 7 February 2023 EGM.
- Receipt of regulatory approvals from
the People’s Republic of China.
- A$7,164,645.28 million Phase 2
placement for 179,116,132 Xanadu shares at $0.04 per share, a 33%
premium to previous market close, increasing Zijin shareholding to
19.42% of Xanadu.4
- US$35 million Phase 3 investment
directly into the Kharmagtai project, creating a 50/50 Joint
Venture (JV) in Khuiten Metals, which controls Kharmagtai.
- Appointment of Non-Executive
Director from Zijin, Mr Shaoyang Shen.4
- Completed bridging placement on 18
January 2023, issuing 41,887,844 fully paid ordinary shares at an
issue price of $0.027 each, raising $1,130,971 (before
costs).5
- Xanadu is well funded with $6.2
million in funding at the corporate level and US$34 million in the
Khuiten Metals JV which controls the Kharmagtai project.
- Mr. William Hundy appointed Company
Secretary upon retirement of Mr. Philip Mackey.6
Executive Chairman & Managing
Director, Colin Moorhead, said: “The March Quarter marked
a significant milestone in the history of Xanadu, where the company
finalised a strategic partnership with Zijin Mining, a global gold
and copper mining major with the balance sheet and capabilities
required to build and operate a large scale open pit copper mine
such as Kharmagtai. This marks the culmination of our 2020
Strategy, which had three horizons to a) Upgrade the Kharmagtai
Resource, b) Deliver a Scoping Study that Demonstrates the
Kharmagtai Value Proposition, and c) Bring in a Funding Partner to
Develop Kharmagtai. The successful delivery of this strategy is
good for Xanadu, for our Shareholders, for Zijin our partner, and
for Mongolia.
With the final stage of our 2020 Strategy
delivered, the Company has cash in the bank and is moving forward
to generate real value at Kharmagtai, with the PFS, Infill Drilling
and Discovery Exploration all underway. As the Operator of the
Kharmagtai Joint Venture, we are working effectively with our
partners at Zijin Mining and appreciate their technical
contributions to deliver a high quality PFS and bring Kharmagtai to
a Decision to Mine. We look forward to providing regular updates as
the work program advances over the next 18 months.”
Figure 1. Chairman & MD Colin
Moorhead standing on White Hill with drill rigs in
background.
Kharmagtai Copper-Gold Project
During the March Quarter, the Company commenced
its PFS, Infill Drilling and Discovery Exploration activities which
are funded by US$35 million from the JV with Zijin.
Pre-Feasibility Study – Building on a
Successful Scoping Study
The 2022 Scoping Study7,8
confirmed Kharmagtai as a potential world class, low cost, long
life mine with an estimated 20% IRR (range 16-25%), US$630 million
NPV at 8% (range US$ 405-850 million) and 4-year payback (range 4-7
years) over 30 year mine life. This included first quartile all in
sustaining costs and projected production ranges from 30-50ktpa
copper and 50-110kozpa gold production during the first five years.
It is based on a JORC compliant Mineral Resource of 1.1 billion
tonnes containing 3 million tonnes of copper, 8 million tonnes of
gold and 100 million tonnes of higher grade zones at > 0.8%
copper equivalent grade.
The Scoping Study outlined a conventional, low
technical complexity open pit and process plant with low 0.9:1
strip ratio for the first five years. However, it also identified
growth-focussed upside opportunities which could materially upgrade
the economics of the project, all of which will be investigated
during the PFS. These included:
-
Oxide Processing: Top 20-30 metres of partially oxidised
mineralisation cannot be processed through flotation and is
conservatively treated as waste in the Scoping Study. The PFS will
evaluate the use of glycine-cyanide leach technology to convert
this pre-strip waste into cash generating ore.
-
Mining Technology: Use of electrified haulage and in-pit crush
& convey technology could significantly reduce mining costs as
well as Scope 1 emissions. This has the potential to deepen and
extend current pit shells, incorporating additional, deep zones of
high-grade ore, adding to the valuation and enhancing life of the
mine.
-
Processing Technology: PFS will evaluate coarse ore flotation and
beneficiation technologies, targeted at reducing energy
requirements and operating cost per tonne of ore processed.
-
Exploration Drilling: Kharmagtai Mineral Resource remains open at
depth and along strike. Deeper drilling at Stockwork Hill completed
after the 2021 Mineral Resource has already confirmed continuation
of the higher-grade bornite mineralisation at depth. There is also
significant potential to grow White Hill Resource and new
discoveries across the tenement. These will be investigated as a
matter of priority and could prove transformational for Kharmagtai
project economics.
Xanadu is operator of the joint venture during
the PFS delivery period of 18 months, after which Zijin will become
operator for final engineering, construction and operation stages
of the project.
During the PFS, Xanadu and its partner Zijin
will complete all major project trade-off decisions and refine
capital and operating cost estimates to +/-15-25%, leading to
selection of a single go-forward option for final engineering and
construction. With the study and inclusion of upside opportunities
above, Xanadu and Zijin are targeting a real and sustained uplift
relative to the Scoping Study economics.
Pre-Feasibility Study – Infill
Drilling
Kharmagtai currently has an Inferred and
Indicated Resource of 1.1Bt containing 3Mt Cu and 8Moz Au.9
As part of the PFS, sufficient drilling will be
completed to upgrade that part of the Kharmagtai Mineral Resource
that is considered to be mineable via open pit to at least
Indicated classification and, subject to the study outcomes, will
enable reporting of a Maiden Ore Reserve. To achieve this,
approximately 30,000 metres of infill drilling has been designed to
upgrade and extend strike length of the shallow open pit resource
areas and selected deeper high-grade zones (Figure
2).
An upgraded Mineral Resource Estimate (MRE 2023) is expected to
be released in Q4 of CY23 once all assays have been received and
resource modelling completed. MRE 2023 will enable Xanadu to start
economic studies and will be supplemented by subsequent PFS level
studies scheduled for completion during Q4 CY24. High-grade
mineralisation at Kharmagtai outcrops at surface with potential to
establish multiple open pits which could later lead into
underground development in the future, with further exploration
discovery drilling success.
Figure 2 – Kharmagtai currently defined
mineral deposits and planned resource infill drill
holes.
Figure 3 – Three diamond drill rigs
operating at Stockwork Hill.
Pre-Feasibility Study – Comprehensive
Geometallurgical Study
Detailed geo-metallurgical commenced after the
reporting period. This work includes sulphide flotation for the
bulk of the orebody, gravity recovery and flash flotation, ore
comminution, gold deportment and oxide leaching test work. The key
objective of this work is to explore opportunities to increase
recoveries, optimise crushing and grinding, and deliver the most
economic ore processing flowsheet.
The extensive program of sulphide floatation
test work is based on high-resolution 3D geo-metallurgical models
for the Kharmagtai deposits. These models define the key geological
parameters effecting metallurgical processing such as sulphide
mineralogy, grain sizes and distribution, obtained from
cutting-edge machine learning algorithms specifically designed for
the Kharmagtai mineral systems.
In conjunction with the sulphide flotation test
work, an extensive comminution test program designed to
characterise the crushing and grinding characteristics of the
Kharmagtai mineralisation, including power consumption requirements
and optimum crushing, and grinding technology.
The program of gold deportment studies is
designed to understand the location and grain size of gold within
each of the mineralisation styles at Kharmagtai, aimed at
maximising gold and silver recovery.
Oxide leaching test work is also underway for
near-surface mineralisation currently classified as pre-strip waste
due to poor flotation recovery. The key objective of this work is
to maximise copper and gold recoveries of the shallow oxidised
material through leaching. This work compliments the successful
glycine and cyanide leach test results reported to date.10
Discovery Exploration - Aggressive
Growth Plan
Kharmagtai remains highly prospective for new
discovery on the tenement, as well as higher grade extensions at
depth and along strike. This has potential to further transform and
uplift the value of Kharmagtai, and one diamond drill rig is in
operation, dedicated to targeting:
-
New sources of shallow high-grade open pit potential; and
-
High priority, deeper, high-grade sulphide targets across the
Kharmagtai mining lease.
Initial stages of this exploration program will
focus on early testing of new shallow, higher-grade exploration
targets, allowing any discoveries to expand the known resource
during the PFS stage and as quickly as possible. This will be
followed by deeper drilling testing an exploration model developed
as an analogue to the Hugo Dummett deposit at Oyu Tolgoi.
Corporate
Zijin Strategic Partnership and
Placement
The strategic partnership11 included three
phases of investment. The first phase (Phase 1
Placement) was completed on 27 April 2022, raising A$5.56
million via a subscription by Zijin to 139 million fully paid
ordinary shares in Xanadu at A$0.04 per share to provide Zijin with
a 9.9% shareholding in the Company. The two subsequent phases were
completed on 10 March 2023 and included a second placement of
ordinary shares at A$0.04 per share to increase Zijin’s total
shareholding in the Company to 19.42% (Phase 2
Placement) and the creation of a 50/50 Joint Venture in
Khuiten Metals Pte. Ltd., the entity currently 100% owned by Xanadu
that holds a 76.5% effective interest in Kharmagtai (Phase
3 JV), for a cash investment of US$35 million. Following
the 18 month PFS, Xanadu has the option to fund its share of
construction, sell it’s 50% of the Phase 3 JV to Zijin for US$50
million or sell half of its share of the Phase 3 JV (25%) to Zijin
for US$25 million plus a loan carry for Xanadu’s remaining share of
costs until commercial production.
Bridging Equity Placement
Xanadu announced an A$1.1 million equity
placement on 18 January 2023 to provide working capital during
final approvals stage for the Zijin Strategic Partnership. This was
well supported by both domestic and international institutions.
This included the issue of 41,887,844 fully paid ordinary shares in
Xanadu (New Shares) at an issue price of $0.027 each to raise
$1,130,971.79 (before costs). Bell Potter Securities Limited acted
as the Lead Manager to the Placement.12
Appointment of Non-Executive
Director
Mr Shaoyang Shen was appointed Non-Executive
Director of Xanadu, effective 10 March 2023, having been nominated
by Zijin in accordance with the Phase 2 Share Subscription
Agreement. Mr Shaoyang Shen is the Deputy President for Corporate
Development & Overseas Operations of Zijin Mining Group.13
Appointment of Company
Secretary
Mr. William Hundy was appointed Company
Secretary upon the retirement of Mr. Philip Mackey, effective 31
January 2023.14
Extraordinary General
Meeting
An Extraordinary General Meeting (EGM) was held
on 7 January 2023 to approve Phase 2 of the Strategic Partnership
with Zijin. Xanadu also sought approval to update the Employee
Share Option Plan per the most recent legislation, issue options to
Directors linking their award to effective delivery of the
Kharmagtai PFS and refresh the Company’s placement capacity under
Listing Rule 7.1. All resolutions were approved by
Shareholders.15
June 2023 Quarter Planned
Activities
Key activities planned during the quarter ending
31 June 2023 (June Quarter) include:
-
Data Acquisition for the Kharmagtai PFS including Infill Drilling,
Metallurgy and Geotechnical focus areas.
-
Commencement of Kharmagtai Water Reserve Study.
-
Detailed Modelling of Scoping Study Uplift Scenarios.
-
Commence construction of new core shed, site accommodation and
power grid connections at Kharmagtai.
-
Continued Shallow Discovery Exploration drilling program.
-
Approval of Deep Discovery Exploration drilling program.
-
Drill Assay Results
-
Pre-Feasibility progress report
-
2022 Sustainability Report
Results of Operations
50% Ownership of Khuiten Metals Pte Ltd 1 |
|
|
|
100% Ownership of Khuiten Metals Pte Ltd |
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
31 Mar2023$’000 |
|
|
31 Dec2022$’000 |
30 Sep2022$’000 |
30 Jun2022$’000 |
31 Mar2022$’000 |
JV: Gross Exploration Expenditure1 |
|
|
|
|
|
|
KharmagtaiDrill metres2 |
1,8506,111 |
|
402- |
749- |
1,140- |
802- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Exploration Expenditure |
|
|
|
|
|
|
Red MountainDrill metres3 |
29- |
|
261- |
343- |
117- |
242- |
Exploration expenditures capitalised |
294 |
|
663 |
1,092 |
1,257 |
1,044 |
Corporate general and administration |
1,267 |
|
1,095 |
1,042 |
1,641 |
861 |
- As disclosed above, the Company
issued new shares in its subsidiary Khuiten Metals Pte Ltd
(Khuiten) on the 10th of March as part of the Zijin Strategic
Partnership for consideration of US$35M. This transaction reduces
the Company's shareholding from 100% to 50.0% in Khuiten, and in
effect loss of majority control. The March Qtr results presented
above are presented on the basis of the treatment of the investment
of Khuiten as a 50% JV under the equity accounting method (ie the
Khuiten operational results are not included on consolidation). The
prior period quarters have not been restated.
- Reflects invoiced metres paid
during the quarter under drilling contract. Physical metres drilled
during the quarter may vary due to invoice timing.
- Excludes horizontal trenching
metres
- Excludes Kharmagtai JV Gross
exploration expenditure no longer consolidated in the Company's
results.
|
Financial
Capital Structure
On 31 March 2023, the Company had 1,637,824,191
fully paid ordinary shares and 121,860,000 options over ordinary
shares on issue and approximately $6.2 million in cash. Options
include 79,470,000 new options issued during the Quarter to
Directors and Management, as approved by Shareholders on 7 February
2023.16
ASX Announcements
This March 2023 Quarterly Activities Report
contains information reported in accordance with the 2012 Edition
of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (JORC Code,
2012) in the following announcements.
-
1 August 2021 - Positive Metallurgical Test Results for Oxidised
Material at Kharmagtai
-
8 December 2021 - Kharmagtai resource grows to 1.1 billion tonnes,
containing 3Mt Cu and 8Moz Au
-
29 December 2022 - Notice of Extraordinary General Meeting
-
18 January 2023 - $1.1 million placement
-
31 January 2023 – Change of Company Secretary
-
7 February 2023 – Results of Extraordinary General Meeting
-
24 February 2023 – Final regulatory approvals received for Zijin
Joint Venture
-
10 March 2023 – Zijin and Xanadu Transaction Completed and
Kharmagtai PFS Underway
-
13 March 2023 – Zijin and Xanadu Transaction Completed
-
6 April 2022 – Scoping Study – Kharmagtai Copper-Gold Project.
-
13 April 2023 – Kharmagtai Pre-Feasibility Drilling Off to a Flying
Start
About Xanadu Mines
Xanadu is an ASX and TSX listed Exploration
company operating in Mongolia. We give investors exposure to
globally significant, large-scale copper-gold discoveries and
low-cost inventory growth. Xanadu maintains a portfolio of
exploration projects and remains one of the few junior explorers on
the ASX or TSX who jointly control a globally significant
copper-gold deposit in our flagship Kharmagtai project.
FIGURE : Location of Xanadu
Projects in the South Gobi region of Mongolia
For information on Xanadu visit:
www.xanadumines.com.
For further information on Xanadu, please visit:
www.xanadumines.com or contact:
Colin MoorheadExecutive Chairman & Managing DirectorE:
colin.moorhead@xanadumines.com P: +61 2 8280 7497 |
Spencer ColeChief Financial OfficerE: spencer.cole@xanadumines.com
P: +61 2 8280 7497 |
This Announcement was authorised for release by
Xanadu’s Board of Directors.
APPENDIX 2: STATEMENTS AND DISCLAIMERS
MINERAL RESOURCES AND ORE RESERVES REPORTING
REQUIREMENTS
The JORC Code, 2012 sets out minimum standards,
recommendations and guidelines for Public Reporting in Australasia
of Exploration Results, Mineral Resources and Ore Reserves. The
Information contained in this Announcement has been presented in
accordance with the JORC Code, 2012.
MINERAL RESOURCES AND ORE RESERVES
Previously reported Mineral Resource Estimates
for Kharmagtai have not changed. There are no reported Ore
Reserves.
MINING ACTIVITIES
There were no mine production or development
activities during the March 2023 Quarter.
LIST OF TENEMENTS
Xanadu held licenses for the following tenements
during the March 2023 Quarter. A strategic partnership was
completed with Zijin, including a 50-50 JV in Khuiten Metals Pte
Ltd, the Xanadu subsidiary which controls Kharmagtai. No new
farm-in or farm-out agreements were entered into during the
quarter.
Project Name |
Tenement Name |
BeneficialOwnershipStart
of Quarter |
BeneficialOwnership Endof
Quarter |
Location |
Red Mountain |
Red Mountain |
100% |
100% |
Mongolia, Dornogobi province, Saikhandulaan soum |
Kharmagtai |
Kharmagtai |
76.5% |
38.25%17 |
Mongolia, Umnugobi province, Tsogttsetsii soum |
COMPETENT PERSON STATEMENTS
The information in this announcement that
relates to Mineral Resources is based on information compiled by Mr
Robert Spiers, who is responsible for the Mineral Resource
Estimate. Mr Spiers is a full time Principal Geologist employed by
Spiers Geological Consultants (SGC) and is a Member of the
Australian Institute of Geoscientists. He has sufficient experience
relevant to the style of mineralisation and type of deposit under
consideration and to the activity he is undertaking to qualify as
the Qualified Person as defined in the CIM Guidelines and National
Instrument 43-101 and as a Competent Person under JORC Code, 2012.
Mr Spiers consents to the inclusion in the report of the matters
based on this information in the form and context in which it
appears.
The information in this announcement that
relates to exploration results is based on information compiled by
Dr Andrew Stewart, who is responsible for the exploration data,
comments on exploration target sizes, QA/QC and geological
interpretation and information. Dr Stewart, who is an employee of
Xanadu and is a Member of the Australasian Institute of
Geoscientists, has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration and to the
activity he is undertaking to qualify as the Competent Person as
defined in the JORC Code, 2012 and the National Instrument 43-101.
Dr Stewart consents to the inclusion in the report of the matters
based on this information in the form and context in which it
appears.
RELATED PARTIES
As set out in section 6.1 of the attached
Appendix 5B, Mining exploration entity or oil and gas exploration
entity quarterly cash flow report, payments made to related parties
and their associates was approx. $391,000 in the March 2023
Quarter. The amounts relate to salary, superannuation and bonus
payments to Directors; legal fees paid to HopgoodGanim Lawyers (a
company associated with Xanadu Non-Executive Director Michele
Muscillo) for legal services; rent paid to Xanadu Executive
Director Ganbayar Lkhagvasuren in relation to Xanadu’s Ulaanbaatar
office; rent and consulting fees paid to Colin Moorhead &
Associates (a company associated with Xanadu’s Executive Chairman
and Managing Director, Colin Moorhead) in relation to Xanadu’s
Melbourne office, geology and sustainability
consultants.
FORWARD‐LOOKING
STATEMENTS
Certain statements contained in this
Announcement, including information as to the future financial or
operating performance of Xanadu and its projects may also include
statements which are ‘forward‐looking statements’ that may include,
amongst other things, statements regarding targets, estimates and
assumptions in respect of mineral reserves and mineral resources
and anticipated grades and recovery rates, production and prices,
recovery costs and results, capital expenditures and are or may be
based on assumptions and estimates related to future technical,
economic, market, political, social and other conditions. These
‘forward-looking statements’ are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by
Xanadu, are inherently subject to significant technical, business,
economic, competitive, political and social uncertainties and
contingencies and involve known and unknown risks and uncertainties
that could cause actual events or results to differ materially from
estimated or anticipated events or results reflected in such
forward‐looking statements.
Xanadu disclaims any intent or obligation to
update publicly or release any revisions to any forward‐looking
statements, whether a result of new information, future events,
circumstances or results or otherwise after the date of this
Announcement or to reflect the occurrence of unanticipated events,
other than required by the Corporations Act 2001 (Cth) and the
Listing Rules of the Australian Securities Exchange
(ASX) and Toronto Stock Exchange
(TSX). The words ‘believe’, ‘expect’,
‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’,
‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’,
‘schedule’ and similar expressions identify forward‐looking
statements.
All ‘forward‐looking statements’ made in this
Announcement are qualified by the foregoing cautionary statements.
Investors are cautioned that ‘forward‐looking statements’ are not
guarantee of future performance and accordingly investors are
cautioned not to put undue reliance on ‘forward‐looking statements’
due to the inherent uncertainty therein.
For further information, please visit the Xanadu
Mines web site www.xanadumines.com.
Appendix 5B
Mining exploration entity or oil and gas
exploration entityquarterly cash flow
report
Name of entity |
Xanadu Mines Ltd |
ABN |
|
Quarter ended (“current quarter”) |
92 114 249 026 |
|
31 March 2023 |
Consolidated statement of cash flows |
Current quarter$A’000 |
Year to date(3
months)$A’000 |
1. |
Cash flows from operating activities |
- |
|
- |
|
1.1 |
Receipts
from customers |
1.2 |
Payments
for |
- |
|
- |
|
|
(a) exploration & evaluation |
|
(b) development |
- |
|
- |
|
|
(c) production |
- |
|
- |
|
|
(d) staff costs |
(434 |
) |
(434 |
) |
|
(e) administration and corporate costs |
(1,055 |
) |
(1,055 |
) |
1.3 |
Dividends received (see note 3) |
- |
|
- |
|
1.4 |
Interest
received |
1 |
|
1 |
|
1.5 |
Interest
and other costs of finance paid |
(13 |
) |
(13 |
) |
1.6 |
Income
taxes paid |
|
|
1.7 |
Government grants and tax incentives |
|
|
1.8 |
Other
(provide details if material) |
|
|
1.9 |
Net cash from / (used in) operating
activities |
(1,501 |
) |
(1,501 |
) |
|
2. |
Cash flows from investing activities |
- |
|
- |
|
2.1 |
Payments
to acquire or for: |
|
(a) entities |
|
(b) tenements |
- |
|
- |
|
|
(c) property, plant and equipment |
- |
|
- |
|
|
(d) exploration & evaluation |
(97 |
) |
(97 |
) |
|
(e) investments |
(144 |
) |
(144 |
) |
|
(f) other non-current assets |
- |
|
- |
|
2.2 |
Proceeds
from the disposal of: |
- |
|
- |
|
|
(a) entities |
|
(b) tenements |
- |
|
- |
|
|
(c) property, plant and equipment |
- |
|
- |
|
|
(d) investments |
- |
|
- |
|
|
(e) other non-current assets |
- |
|
- |
|
2.3 |
Cash
flows from loans to other entities |
(419 |
) |
(419 |
) |
2.4 |
Dividends received (see note 3) |
- |
|
- |
|
2.5 |
Other
(provide details if material) |
- |
|
- |
|
2.6 |
Net cash from / (used in) investing
activities |
(660 |
) |
(660 |
) |
|
3. |
Cash flows from financing activities |
8,296 |
|
8,296 |
|
3.1 |
Proceeds
from issues of equity securities (excluding convertible debt
securities) |
3.2 |
Proceeds
from issue of convertible debt securities |
- |
|
- |
|
3.3 |
Proceeds
from exercise of options |
- |
|
- |
|
3.4 |
Transaction costs related to issues of equity securities or
convertible debt securities |
- |
|
- |
|
3.5 |
Proceeds
from borrowings |
- |
|
- |
|
3.6 |
Repayment of borrowings |
- |
|
- |
|
3.7 |
Transaction costs related to loans and borrowings |
(75 |
) |
(75 |
) |
3.8 |
Dividends paid |
- |
|
- |
|
3.9 |
Other
(provide details if material) |
- |
|
- |
|
3.10 |
Net cash from / (used in) financing
activities |
8,221 |
|
8,221 |
|
|
4. |
Net increase / (decrease) in cash and cash equivalents for
the period |
|
|
4.1 |
Cash and cash equivalents at beginning of period |
118 |
|
118 |
|
4.2 |
Net cash
from / (used in) operating activities (item 1.9 above) |
(1,501 |
) |
(1,501 |
) |
4.3 |
Net cash
from / (used in) investing activities (item 2.6 above) |
(660 |
) |
(660 |
) |
4.4 |
Net cash
from / (used in) financing activities (item 3.10 above) |
8,221 |
|
8,221 |
|
4.5 |
Effect
of movement in exchange rates on cash held |
- |
|
- |
|
4.6 |
Cash and cash equivalents at end of period |
6,177 |
|
6,177 |
|
5. |
Reconciliation of cash and cash equivalentsat the
end of the quarter (as shown in the consolidated statement of cash
flows) to the related items in the accounts |
Current quarter$A’000 |
Previous quarter$A’000 |
5.1 |
Bank balances |
6,177 |
6,177 |
5.2 |
Call deposits |
- |
- |
5.3 |
Bank overdrafts |
- |
- |
5.4 |
Other (provide details) |
- |
- |
5.5 |
Cash and cash equivalents at end of quarter (should equal
item 4.6 above) |
6,117 |
6,117 |
6. |
Payments to related parties of the entity and their
associates |
Current quarter$A'000 |
6.1 |
Aggregate amount of payments to related parties and their
associates included in item 1 |
391 |
6.2 |
Aggregate amount of payments to related parties and their
associates included in item 2 |
- |
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly
activity report must include a description of, and an explanation
for, such payments. |
7. |
Financing facilitiesNote: the
term “facility’ includes all forms of financing arrangements
available to the entity.Add notes as necessary for an understanding
of the sources of finance available to the entity. |
Total facility amount at quarter
end$A’000 |
Amount drawn at quarter
end$A’000 |
7.1 |
Loan facilities |
- |
- |
7.2 |
Credit standby arrangements |
- |
- |
7.3 |
Other (please specify) |
- |
- |
7.4 |
Total financing facilities |
- |
- |
|
|
|
7.5 |
Unused financing facilities available at quarter
end |
- |
7.6 |
Include in the box below a description of each facility above,
including the lender, interest rate, maturity date and whether it
is secured or unsecured. If any additional financing facilities
have been entered into or are proposed to be entered into after
quarter end, include a note providing details of those facilities
as well. |
|
8. |
Estimated cash available for future operating
activities |
$A’000 |
8.1 |
Net cash from / (used in) operating activities (item 1.9) |
(1,501 |
) |
8.2 |
(Payments for exploration & evaluation classified as investing
activities) (item 2.1(d)) |
(97 |
) |
8.3 |
Total relevant outgoings (item 8.1 + item 8.2) |
(1,598 |
) |
8.4 |
Cash and cash equivalents at quarter end (item 4.6) |
6,177 |
|
8.5 |
Unused finance facilities available at quarter end
(item 7.5) |
- |
|
8.6 |
Total available funding (item 8.4 + item 8.5) |
6,177 |
|
|
|
|
8.7 |
Estimated quarters of funding available (item 8.6
divided by item 8.3) |
3.86 |
|
Note: if the entity has reported positive relevant outgoings (ie a
net cash inflow) in item 8.3, answer item 8.7 as “N/A”.
Otherwise, a figure for the estimated quarters of funding available
must be included in item 8.7. |
8.8 |
If
item 8.7 is less than 2 quarters, please provide answers
to the following questions: |
|
8.8.1 Does the entity expect that it will continue to
have the current level of net operating cash flows for the time
being and, if not, why not? |
|
Answer: Funding available for in excess of 2 quarters so no
response required. |
|
8.8.2 Has the entity taken any steps, or does it
propose to take any steps, to raise further cash to fund its
operations and, if so, what are those steps and how likely does it
believe that they will be successful? |
|
Answer: Funding available for in excess of 2 quarters so no
response required. |
|
8.8.3 Does the entity expect to be able to
continue its operations and to meet its business objectives and, if
so, on what basis? |
|
Answer: Funding available for in excess of 2 quarters so no
response required. |
|
Note: where item 8.7 is less than 2 quarters, all of
questions 8.8.1, 8.8.2 and 8.8.3 above must be answered. |
Compliance statement
1 This statement has been prepared in
accordance with accounting standards and policies which comply with
Listing Rule 19.11A.
2 This statement gives a true and fair view of
the matters disclosed.
Date: 01 May 2023
Authorised by: Board of Directors(Name of body
or officer authorising release – see note 4)
Notes |
|
1. |
This quarterly cash flow report and the accompanying activity
report provide a basis for informing the market about the entity’s
activities for the past quarter, how they have been financed and
the effect this has had on its cash position. An entity that wishes
to disclose additional information over and above the minimum
required under the Listing Rules is encouraged to do so. |
|
|
2. |
If this quarterly cash flow
report has been prepared in accordance with Australian Accounting
Standards, the definitions in, and provisions of, AASB 6:
Exploration for and Evaluation of Mineral Resources and AASB 107:
Statement of Cash Flows apply to this report. If this quarterly
cash flow report has been prepared in accordance with other
accounting standards agreed by ASX pursuant to Listing
Rule 19.11A, the corresponding equivalent standards apply to
this report. |
|
|
3. |
Dividends received may be
classified either as cash flows from operating activities or cash
flows from investing activities, depending on the accounting policy
of the entity. |
|
|
4. |
If this report has been
authorised for release to the market by your board of directors,
you can insert here: “By the board”. If it has been authorised for
release to the market by a committee of your board of directors,
you can insert here: “By the [name of board committee – eg Audit
and Risk Committee]”. If it has been authorised for release to the
market by a disclosure committee, you can insert here: “By the
Disclosure Committee”. |
|
|
5. |
If this report has been
authorised for release to the market by your board of directors and
you wish to hold yourself out as complying with
recommendation 4.2 of the ASX Corporate Governance Council’s
Corporate Governance Principles and Recommendations, the board
should have received a declaration from its CEO and CFO that, in
their opinion, the financial records of the entity have been
properly maintained, that this report complies with the appropriate
accounting standards and gives a true and fair view of the cash
flows of the entity, and that their opinion has been formed on the
basis of a sound system of risk management and internal control
which is operating effectively. |
______________________________
1 ASX/TSX Announcement 7 February 2023 – Results of
Extraordinary General Meeting2 ASX/TSX Announcement 24 February
2023 – Final regulatory approvals received for Zijin Joint Venture
3 ASX/TSX Announcement 13 April 2023 – Kharmagtai Pre-Feasibility
Drilling Off to a Flying Start4 ASX/TSX Announcement 13 March 2023
– Zijin & Xanadu Transaction Completed5 ASX/TSX Announcement 18
January 2023 - $1.1 million placement6 ASX/TSX Announcement 31
January 2023 – Change of Company Secretary 7 ASX/TSX Announcement 6
April 2022 – Scoping Study – Kharmagtai Copper-Gold Project. 8 The
material assumptions underpinning the Scoping Study production
target and the forecast financial information derived from the
production target continue to apply and have not materially
changed.9 ASX/TSX Announcement 08 December 2021 - Kharmagtai
resource grows to 1.1 billion tonnes, containing 3Mt Cu and 8Moz
Au10 ASX/TSX Announcement 1 August 2021 - Positive Metallurgical
Test Results for Oxidised Material at Kharmagtai11 ASX/TSX
Announcement 10 March 2023 – Zijin and Xanadu Transaction Completed
and Kharmagtai PFS Underway12 ASX-TSX Announcement 18 January 2023
- $1.1 million Placement13 ASX/TSX Announcement 10 March 2023 –
Zijin and Xanadu Transaction Completed and Kharmagtai PFS
Underway14 ASX/TSX Announcement 31 January 2023 – Change of Company
Secretary15 ASX/TSX Announcement 7 February 2023 – Results of
Extraordinary General Meeting16 ASX/TSX Announcements 7 February
2023 – Results of Extraordinary General Meeting AND 29 December
2022 - Notice of Extraordinary General Meeting17 Updated following
10 March 2023 execution of Phase 3 of the Zijin Strategic
Partnership to form a 50-50 JV in Khuiten Metals Pte Ltd, a Xanadu
subsidiary which holds 76.5% of Kharmagtai.
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/fd6fe78a-2c00-43e4-b5fc-a5afbcf3a299
https://www.globenewswire.com/NewsRoom/AttachmentNg/eb5d1b72-1dd1-4a21-92cd-a5cc954f0be2
https://www.globenewswire.com/NewsRoom/AttachmentNg/7aa67122-b53c-4b05-8725-1ecf49501906
https://www.globenewswire.com/NewsRoom/AttachmentNg/f3c98c44-06d8-4094-ad35-1a0d82100812
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