I will be voting against resolution 1, the timing of the CR wasn't great and now management wants the opportunity to reset the clock and be able to do another one without shareholder approval...I do not agree. Management, you had your shot, you took it, and I did not like the outcome. Therefore, next time, you can ask first.
It is nice to see that we are churning through the volume, and it was great today, but just feels like it did before the CR except we are about 20% lower now. I am becoming increasingly frustrated with the lack of announcements. By the current published timeline, there should be a heap of announcements out in the next few weeks, but for every day we get closer to the end of the quarter without an announcement, the higher the probability is that they will not come according to schedule. Not that this is unusual for management, but the sour taste left after the CR has made me more annoyed by the lack of activity now.
There has been some comments on the forum about spod prices recently - I think the world is likely burning through the current stockpiles at the moment that contributed to dropping spod prices, and I saw the other day that Vale had to shut down its iron ore production because of COVID in Brazil, how long until COVID19 starts to effect lithium output from Brazil? If it isn't already, I would suggest it won't be long. This will further compress supply which will decrease even more of the stockpiled product. This should start to push prices up, and given the restriction in future supply by some of the majors as a result of current low prices, CXO will be a benefactor of the fact that supply is limited and because it isn't that easy to just turn the tap back on. I do wonder if the market factoring in future limited supply is part of the recent resurgence in interest in the sector of late - if this is true, we should definitely see some very positive SP movement with the DFS, finance, FID and construction.
I am hoping to see an announcement by the end of the week, but who knows!
CXO Price at posting:
4.7¢ Sentiment: Buy Disclosure: Held
