CXO (ASX) Ann: Key NT Government approvals for Finniss Lithium Project

Originally posted by Kiwisfly9 ↑

That's not likely to be an issue.

Our partners in China with Yahua have made it quite clear that they want more of our product than we were previously able to even supply them. The primary reason being that we have a stupidly low amount of impurities in our spod compared to other producers around the world which means a much more high quality result for Lithium hydroxide producers in China (and a premium on their product with much more generous margins because its electric car battery grade). So it's quite likely now that the MMP hurdle has been crossed (which was what was always going to be the make or break for this project) Biggins and his Chinese counterparts will be very busy in the coming weeks drafting up an additional agreement which will put just about all of the required cash into our pocket to proceed. Bear in mind, there will still be likely more spod left over, not to mention the lithium fines, so the profitability of this project (which is already pretty respectable) is only going to go up.

Bear in mind too, that a significant amount of that money will be used for pre-strip of those other locations which actually have way more lithium in them such as BP33 (which I suspect will be even bigger than the latest drilling results indicated). The Directors were very careful to make sure that they allocated enough funds to move onto the next location once Carlton was wrapped up.

Secondly, once we cross 15 MT (which at this stage is more or less already in the bag with the resource upgrade coming in the following weeks) we will unlock millions of dollars more in that contract we did with that Canadian lithium company who sunk money into us for a 2% cut of our profits. Was it 8 mill more? I can't quite remember off the top of my head.... But in essence, those two factors alone would see us in construction this year and mining early next.

There is also the issue of the cat out of the bag. That being Primero. A while ago, they foolishly let slip in one of their presentations to their shareholders that they expected a bumper year this year because of an expected 100 million business deal that was being negotiated with CXO for running our mine site, including gravity separation equipment because our spod requires little else before being loaded up on a truck and the staff needed to get it to port.

This means the capital we need, if this deal actually goes through to get the project off the ground is way way less than the 70 mil proposed in the original DFS (Which should be getting an upgrade within the next month or two tops to reflect the resource upgrade soon to be released) because we won't be needing to pay the wages of the work crews or for the required equipment up front from day dot.

Equally however, we could choose to potentially just let the Primero deal go too if we secure the additional off-take agreement. But either way, shes looking like a done deal and I for one will be putting my feet up and just letting the board get on with it. The Gordian Knot has been cut so to speak.

Cheers to all the holders who regularly comment here and who have taken battering after battering over the last couple years, it hasn't been easy by any measure but we knew what we were sitting on and most of us refused to let go only for someone else to make a fortune instead. It looks like we have finally made it out of the end of the tunnel.

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Agreed with everything except the LRC 2.5% payment. If you head back to the announcement, I believe we’ve already received $6 mil or so and only have roughly $1.5mil which we will get once construction starts so we may need some funds relatively soon. Hopefully we can get the offtake organised so we don’t need another share issue

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Last 14.0¢		Change 0.000(0.00%)		Mkt cap ! $299.1M

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14.0¢	14.5¢	14.0¢	$307.3K	2.175M


Last 14.3¢		Change 0.000 ( 1.64 %)
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Last updated 15.59pm 03/05/2024 ?

Agreed with everything except the LRC 2.5% payment. If you head...

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