CXO is Australia’s next lithium producer. Offtakes with Tesla, Ganfeng (World’s largest lithium producer) and Yahua (another large lithium producer).
Lithium Plus a subsidiary of CATL (worlds largest EV battery maker). MD of Lithium Plus also has connections with Shandong Ruifu (another lithium producer).
* in the last 18 months CXO share price has gone from 5c to a high of $1.68 (33 bags). Current SP $1.33
* Lithium Plus IPO was 40c, flew to a high of $1.08.
* CHR flew from 21c to a high of $1.03 based on nearology to CXO (haven’t even drilled a hole in the ground yet)
* A8G flew from 30c to 92c based on nearology to CXO’s Anningie/Arunta & Barrow Creek (not to be confused with Burrell Creek), whilst having never drilled a hole
* AS2 flew from 32c to a high of 78c based on nearology to CXO’s Anningie/Arunta and Barrow Creek without drilling a hole.
Burrow Creek formation close to capital city of Darwin, Darwin Port about an hours drive via sealed road. CXO’s transport cost estimates from mine to port are about $10/t. Huge locational advantage. Close to grid power, local workforce, close to Middle Arm Industrial Precinct. NT gov backing.
Burrow Creek extremely weathered at surface, but once into the fresh rock, coarse, large crystal, high grade spodumene is found. CXO’s spodumene so low in impurities that only a DMS processing plant is required (no flotation, huge capex savings).
This is a good acquisition. Right place, right time. All the companies above flew to minimum $30mil - $40mil MC’s off the back of their neaology to CXO.
RAS not only has neaology to CXO (Tesla/Ganfeng/Yahua) but also nearology to Lithium Plus (CATL/Ruifu).
I don’t see why, as a minimum, RAS couldn’t emulate those above.
IMO
GLTAH
RAS Price at posting:
10.0¢ Sentiment: Buy Disclosure: Held
