The market has lost faith in the entire Lithium space recently, but it's only a blip IMO, Lithium has too bright of a future for it to remain down forever.
I can see that lots of people have lost or are losing faith, but the reality of the situation is that CXO is doing everything they said they would, it just takes time. I find that individuals that frequent forums like HC or watch the price movements daily can feel like everything is taking forever and the negativity can become self fulfilling.
I've been reading through the last couple of weeks of comments tonight and for me, it's been great to see so many negative posters helping to keep the price low, all the while I've accumulated more and more shares thinking to myself how great this company has been moving forwards recently. I don't focus on the stock price unless it's in a good buying range, the price will take care of itself in time provided the company keeps moving things along the way they said they would.
If you're struggling - take the time to go through the last years worth of announcements and you will see that CXO has a plan and has been actioning that plan reasonably well. The problem (as I see it) is that most punters are expecting the company to act like a traditional explorer and return result after result from drilling campaigns in the hopes of making massive gains overnight.
The misalignment in expectation is that CXO is clearly focusing on shoring up Grants & BP33, getting offtake agreements, completing feasibility studies and moving through the NT approvals process. All of which is to bring in cash to allow the company to expand the resource base.
If you are expecting anything different to what's on this slide I suspect you will be pretty disappointed, as they have spelled out what they are doing for the next few years very clearly, and it's all about mining Grants and BP33. It's a longer term strategy, but IMO it's the right one.
I believe that this is the a great outcome for shareholders. You get to keep the number of shares in the company at a reasonable level, and get good cash flow coming in month after month for approximately 3.5/4 years (my calculations of Grants & BP33 resources).
This allows for a sustained drilling campaign in the region to increase the resource base, as well as plenty of cash to either buy up other prospective land, or significantly move along any one of their many other projects (https://www.coreexploration.com.au/other-projects) which I assume many people have forgotten about, but some of which are potentially highly valuable in their own right.
Over the last few weeks I've significantly increased my holdings as I never thought I would get to buy at these levels again. Next week when more money hits my bank account i'll buy more, so long as I can continue to buy at these levels and the company continues to move forwards.
CXO Price at posting:
4.1¢ Sentiment: Buy Disclosure: Held
I suspect you will be pretty disappointed, as they have spelled out what they are doing for the next few years very clearly, and it's all about mining Grants and BP33. It's a longer term strategy, but IMO it's the right one.
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