I didn't think we were that low on funds
@seaemay, and I wasn't tracking that we needed the CR to pay for drilling. As of the end of the last quarter we had 2m in the bank which should have been enough to fund at least some drilling in the 2nd QTR, so for all we know, we have been drilling already - should hopefully hear something on this soon.
Anyway, I have a question for the forum:
I have been adding to my holdings over the past week, as I am struggling to see any real risks at the moment. I can only see the SP increasing from here based on the fact that we have fines offtakes, a likely announcement on funding, additional assays and hopefully resource increases. The market is selling CXO at the moment (why I cannot fathom), and so I figured that this is the time to buy and capitalise on the negative sentiment around the stock at moment. From previous stocks (and even CXO), when the fundamentals haven't changed, but the stock is being sold, it can turn at any point and start to head in the opposite direction - I see this happening to CXO and hence why I have added. I have been in CXO for the last couple of years, and whilst I am not sure that my recent purchases will all remain for the long term, they certainly will for the medium term simply because I cannot see anything but an increasing SP.
I sat back today and had a critical look at my investment in CXO and attempted to analyse any confirmation bias I might have to see if I removed emotion from the decision making process, would I see the company differently. For the life of me, I am unable to see any significant risks or issues, especially as we will not need funding for the next 12 months, which means for the next 6 months at least, there is no risk of any CR. CXO has the product in the ground which even without additional resources will already by profitable, and with the fantastic proximity to Darwin, I cannot even see an operations risk with a global downturn because CXO can produce lithium (and fines as a kicker) cheaper than nearly all of its peers, meaning that it can outlast them all if it comes to it.
So, what am I missing? I am asking the forum for the counter view - the counter argument that identifies risks I may not have thought of, and I am happy to called out on any bias that you might see in my writing.
(20min delay)