not trying to down ramp huh? I cannot see a single reason as to why this stock will be anywhere near 5c next year. We have 12m in the bank and a massive drilling season planned, not to mention the multiple offtakes that management has eluded to so far. The only way CXO will be around 4-5c next year is if they discover nothing new and do not announce any off takes (i.e. nothing goes to plan) - what about their performance so far suggests that this is even a remote possibility?. Even if they do not uncover any new resources (very very unlikely), the off takes alone will mean that this company will be very close to mining, meaning that profits won't be far away considering the short payback period, meaning that even in this dire scenario, there will still be SP appreciation.
The finance announcement is the next key one, I get that the market really cares about resource size, but to me, time to market and profitability is the key. Even with a 3.5 year mine life (based on the DFS that captured about a quarter of the current resource), the company is still making money for over 2.5 years of this. The resource is going to grow, and the margins will be excellent. The fantastic location means no FIFO, no significant transport cost, no expensive mining camps, no 4-6 week turnaround on heavy vehicle repairs, excellent access to trades that don't want to be permanently separated from their families, no need to pay expensive fuel costs or the need to store heaps of it because of remoteness - the economics will be excellent - oh yeah, and Darwin is about 3 days closer sailing time to China than Port Hedland, so even total cost of shipping (benefits both miner and producer) will be cheaper over time.
I've added a heap of extra shares recently deciding to capitalise on the poor sentiment and buy the shares while they are cheap - doing my bit to tighten the register also by not selling any. This time in CXOs existence just requires patience. I am less involved in the forum lately because there isn't much happening with the company right now - this does not mean that I am selling, this does not mean that I have lost faith in the vision, this just means that there isn't much happening right now.....this will change.
The real plus for me from LTRs run is that it has demonstrated that there is interest in the market still and people are willing to invest. I accept that they have a much tighter register, and a much bigger resource, but aside from being happy for holders of that stock, I am encouraged by the fact that investment is occurring. CXO just has to keep doing what it is doing, increasing and proving up the resource, announce the off takes and large investment in CXO will happen too.
CXO Price at posting:
4.1¢ Sentiment: Buy Disclosure: Held
