I am not surprised to see our SP hovering in the mid 4's. If you think about what has actually changed in recent months, the answer is not much. We have had some resource definition, some more historical gold analysis, and an MOU with Transamine, but in actual fact, whilst these all point towards what is expected to come, until we get drilling results, DFS and confirmation of binding offtakes, nothing has materially changed. Once we see these developments, then that is something the market (and business/industry) can hang its hat on, and where the share price movement will come from.
The recent video shared by @$man regarding the lithium sector mentioned that a mine takes about 5 years to get to development. Map that against CXO and it is about right. I would encourage holders to chill a bit, whilst it would be excellent to see massive growth in a very short space of time, this is not reality, and not what I am looking for. I am looking for a company that continues to develop and one that will provide an excellent return over time, not because they got a short period of notice from the market, but because they developed an excellent business that has both intrinsic and extrinsic value. Sure I could day trade my life away, but unless you're excellent at calling and timing the market, you probably won't get sustained wins - most traders I know lose as much as they win.....I'm not that good at it by the way, nor do I have the time to watch the market every waking minute of the day - If you get drawn into market watching, it will own your life.
I take a lesson from my holdings in NXT 4-5 years ago. I bought in around $2.50 and traded it as I was afraid that my investment would go backwards, and yep I walked out in front, but nothing like I would have if I had held it for the longer term - right now I would be looking at 4-500% over a longer time horizon. They had a good business model back then in an industry that was forward looking (sound familiar??) - a much better strategy for me would have been to just sit back and let them do their thing, rather than me trying to trade it on the ups and downs. This is not a lesson isolated to my holdings in NXT and I'm sure you all have similar examples. No cross promoting of NXT here, I don't hold now and haven't for years, DYOR if you think they have the goods.
IMO, CXO has the makings of a company that could do very well in the long run. Our share register seems to be currently full of people looking for a quick buck, and good luck to those that chase this, I hope you get it. This is hurting us in day to day movements, but it won't have a lot of effect over a 1-2 year time horizon. Once the value of the business is recognised by funds and bonafide institutional investors (or a potential suitor for a T/O) the short termers won't matter anymore.
My current time horizon on CXO is the end of next year, obviously I assess regularly, but by the end of 2021, the SP should be nothing like it is now, and we should have a good idea where the company is going. There will be snippets along the way, but the edge of shipping concentrate is what I want to see (because at the point nearly everything is confirmed, with only actual production costs that need to be proved). The rest of this year should be pretty exciting for the company with what we have in store, but I don't get wrapped up in gold chip samples or MOU's - they are only an insight into the main game. We should see:
1. DFS number 2 2. More drilling results (maybe some gold too!) 3. Finance 4. FID 5. Binding Offtakes 6. Construction beginning/progressing
all in 6 months......crikey!
GLTA
CXO Price at posting:
4.5¢ Sentiment: Buy Disclosure: Held
