Whether it's time to buy depends on your investment horizon. My investment horizon is 12+ months, so yes it's a buy for me whether it drops to 5c or rises to 7c.
Current market cap $50mln. Current operations 240kt per annum. Implied in the market cap is that the company makes a profit of just $30 per tonne (240kt x 30 x PE 7).
I think it is making at least $50 per tonne, which would give a valuation of roughly $84mln plus $10mln in cash = about 10c per share.
For me it's a buy on those metrics alone.
If I further consider that $10mln from raising plus operating profits would be enough to expand to 625kt per annum at a reduced cost of production, then the operating profit per tonne expands to at least $100 on 625kt by year end giving a valuation of around 50c per share.
It may drop to 5c from here, and people who bought at 6c on short term basis would sell because of fear or cashflow need, taking a significant hit. But if you can hold until the end of the year or February 2025, you know where it's going.
CXM Price at posting:
5.6¢ Sentiment: Buy Disclosure: Held
