well, we have a material offtake agreement - this is excellent. My heart says that I would love to see an announcement tomorrow, but my head says that it would be better to see it on Monday. My heart says tomorrow as I do not want to wait to see what the detail of the material announcement is, but I know that it is better for momentum if the announcement comes monday because it wont be interrupted by the weekend. Speaking of hearts and heads.....I’ve have seen some posts today about the price hitting 50c or $1 - this always seems to happen when a penny hopeful gets a decent announcement and then the forum is filled with “we are on our way to $1”.....but this never happens, and there is good reason for it. I have said it before, but a number of posters have run the numbers on CXO and the general consensus is that the stock will be worth approx 60c when we are at name plate production. This will not be tomorrow and will not be Monday, we don’t need outlandish SP claims right now, we need realism. I think an excellent offtake should push us somewhere between 10 and 15c and the price will likely rest closer to 10c. This is still amazing and would represent a re-rate in the stock price. Subsequent announcements may push it higher than this, and I am hoping that by the end of next year, we may be looking at something like the 60c as forecast. It could be more, it could be less, but one thing is for sure, it will be well above what we see today.
I am not so sure that management will engage the oppies, as they stated at the AGM that 300k was a big investment for them. I don’t think that it is a risk however, but if I took the correct read from the AGM, it seems like something they weren’t in a position to do yet. That said, I would love it if they did. It would be a great way to avoid a CR, especially if we needed a bit more cash to get us through to being able to access other funding sources. I have definitely been a critic when it comes to how much skin I think management should have in the game at this point. I know I have a lot In, and so should they.
I am very keen to see the detail of the announcement when it is released. As was stated here today, the size of the offtake should give some indications as to what we can expect from the resource upgrades, but it should not be a surprise when the offtake consumes some/most of our CURRENT available resource (based on the initial DFS) as it would be inproper to release anything else as the updated resource is yet to be announced. What we could take from it however, is that if a company is securing up to what “we have available”, then it is likely that we have a fair bit more to give. Bring on the resource upgrade, increased mine life, and the updated DFS! I really hope that (given the current diplomatic/global climate) that it is not a Chinese offtaker - i would really like to see us diversify our demand sources.
This is a really exciting time for CXO, for those that have been holding long term then hopefully the wait will have been worth it. I was only remarking yesterday that the size of my loss a few months ago was eye watering, but fast forward to day and then to tomorrow/next week and wow.....but that is penny dreadful/hopeful! GLTA - this is our time.
CXO Price at posting:
6.0¢ Sentiment: Buy Disclosure: Held
