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23/11/21
13:39
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Originally posted by Rockdoctor9000:
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Spot on. The hypothetical risks and rewards are pretty damn good. worst case scenario CXM is forced to sell the deposit back to Southern Cross Fertilizers, at current market valuation... Which realistically should be higher than CXMs current market cap.... or worse phosphate prices crash back to unprofitable levels, very unlikely due to coming global food shortages and increasing phosphate demand for LiFePO4 batteries. likely scenario is Southern Cross Fertilizers agree to pump money into developing the deposit for full life of mine offtakes. Most likely at a set price or discount to spot. Market Cap would at least triple overnight. best case is they get rid of this monkey, get some binding offtakes and finance to develop, phosphate prices continue to rise and market cap multiplies by 5-10 times.
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Think your estimation for market cap size is a bit over the top, would be happy to trade at a market ca of 50% of our post tax NPV