Why do you think it will be $1.50? That's a market cap of $1.8B
If they mined abosultely everything they think they have, it's around $2.4b @ $700/t 6%spod, minus ongoing costs of $1.2b, minus the cost of each site (so far only 1 site of $85m or maybe more if we go deeper so expect this x2-3 for all reserves), minus tax, minus royalties, etc. This leaves like $400M-600M over 7-10 years (which seems right given 5.7Mt/1.x%spod had a NPV of 100-200m).
If cxo get 20Mt from some more drilling on existing sites (ie no extra capex) AND the price of spod goes to 800 then it's like $1.84B over 7-10 minus tax (so close to $1B maybe?).
I guess if you think the other assets are worth 700M+ then perhaps we could get there. Otherwise, we'd need to double reserves and have a li price over $1000/t conc - which may well happen!
CXO Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)