Well, it seems we are in the midst of a re-rate. I say midst because I do not think that we are there yet. When I saw that wall go up today at 7.8, I thought that it might kill the momentum, but nope, we still have some life left in this run yet. As I said in my last post, this time it feels different, it all feels different. It seems the market is finally recognising what we have and the stage in the development cycle we are at. I'm not sure I fully agree with @wenty in that something is coming that is driving the buying. I know something is coming, it has always been coming though but I don't think it is related to something new. There are not many (if any) lithium projects that are fully approved and ready to go, and now that lithium prices have turned, I think those astute buyers are cottoning onto the value that will be here before long - that's right folks, 8.5c seems like some real growth, but I would contend that it has only just started. My fair value estimate right now is 15c, and then with the announcements over the next 6 months or so, it will be well above that, with the spike at well above that again. If PLL hit 60c for a project that is no where near approvals, then what is in store for CXO?
The wait has seemed so long (probably because it was) - we have so many prospects and it is just nice to see it finally start. I don't want to throw out all the congratulations yet, because we are not even a fair value but if this week has been anything to go by, it won't be long. To the would-be sellers, don't be foolish, the depth should tell you everything you need to know - attempting to cap the price will only end in tears (for you anyway), look at what is in front of you and let it run, or get left behind.
CXO Price at posting:
8.5¢ Sentiment: Buy Disclosure: Held
