The guys from money of mine clear itemised the cost to be around $140 -165m.
Therefore, cxo does not have $200m in the bank as $165m is committed.
And for others who love throwing numbers that cxo is making a profit from selling its Li.... why is cxo going into maintenance mode, cos its costing more to extract Li from grant mine.
the only Li miner is PLS who can afford to continue its expansion to reach its target of 1,000,000ton Even ALBEMARLE stated in their recent report that nearly all Li miners will not be able to conduct drilling and expansion activities at the current low Li price.
Please research on what jhina is doing to improve its economy. They committed 100s of billions for major infrastructure projects next year..... as such you have noticed iron ore price already jumped ahead of the demand at 130 plus/ton.
That will take several months for the 1000s of jobs creation to filter down into spending on household goods and EVs. This may be reflected in higher demand towards end of 2024.
I dont think the restocking in Feb- early Mar after the lunar new year will be strong as the timeframe is too short for economic recovery data to show up.
So, from my estimates of jhina recovery it will take a good 10months before any meaningful economic recovery data can be used by Li producer to either pick up pace or continue at its current low demand pace.
This will also mean Li price may have further to fall by mid 2024 before ticking up towards end of 2024. so in that 10mths or more, cxo will be in maintenance mode therefore hopefully saving millions before Li price show positive sign of recovery.
And i do find it strange that none cxo holders keep posting on cxo.....weird and not efficient use of time. Must have their own agenda and why not target other miners that are in bad situation.... why not post on the other miners thread like: Or are each downrampers assigned a stock to target. Agy pll Aru mlx dli Avz LLL sya
There have been a few US fund manager who have predicted that jhina will recover towards the end of 2024. If that the case, there will be a lag time before jhinese consumers become confident of jhina recovery and start spending on items like EVs.
Also, other major factors that can help boost EVs demand....EU have a soft recession, Gaza war finish, Ukraine war does not get worst. Europe boost their demand for small cheap EVs from jhina. This is hard as europe have put a lot of restriction on jhina EVs to protect their infant EVs manufacturing.
The important message is that ALBEMARLE clear have stated that a this low Li price no miners will have the ability to conduct expansion activities. That means when demand catches up.... there will be another shortfall of Li available for production into battery. Therefore driving the next boom cycle in Li.
CXO Price at posting:
26.0¢ Sentiment: None Disclosure: Held
(20min delay)