Hangover, I like your reasoning and agree the mgt and Geo team is special BUT I still sold down at 9.5c- 9.2c .....about 80% of my substantial CXO position....and have not bought back.......why......wet season means drill team simply cant hit at Zola...and it could be months.....April/May ? Will the company please release a target Zola date ???
On review, Grants IMHO looks insufficiently commercial to be the "maiden" pr sole resource deposit given its structure and the $50m - $100m required to raise to establish a mine on site to extract it. PLS's Pilgangoora serves as a good proxy for mine costs and their maiden deposit is pretty much at the surface and 5-10x larger and not in a deep underground seam structure like Grants. IMHO on close review, although Lith grades are excellent I dont like Grants as a standalone commercial prospect, for now.....It is, at best, a supplement JORC resource to Zola (when proven) perhaps ??? This is my view. If you dont agree, thats cool. Market is speaking though.....
I have said it from Q316 when CXO was 5c (undiluted)....and it still holds true now.....CXO is all about Zola and the rest is a distraction. (Ringwood intrigues but we know so little...again why ?).
I was first to state....CXO should sell or IPO all the Uranium tenements to raise our cash balance, with ITM option ....we could have $14m cash plus $20m -50m in cash from Uranium sales giving us$35-65m cash ??....but they simply wont sell it or IPO ??? Crazy. This is where Mgt are letting us down..."shareholder value"creation strategies.....With $65m in cash We would be basically 1/2 funded to mine and at least fully funded to drill in big teams across all the tenements and even buyout LTR and KSN and finish the NT Lithium jig saw puzzle.
Also IMHO Grants will not attract all the sufficient market financing required to be standalone and I reckon drilling is finished there and should be. I personally dont want any more precious cash spent at Grants .......for now at least...until after Zola and Ringwood.
With $37m Mkt cap and Cash balance will likely to fall below $8m and maybe $6-7m by this quarter completed, options should boost this, but these are the reasons CXO is 8.6c and falling on good news ..and why I think its going lower short term and will break back to 7.5-8c range soon.
I might pick it up again there....or on confirmation of drilling commencing at Zola....but that is proving a crazy Long wait. why ??
When can drilling commence at Zola at the earliest ? Still no info in the news releases. Mgt please release details.
If silence stays golden on Zola plan..... then we are likely to see more steady SP decline. Right now what truly fundable commercial assets do we truly have.....Grants is a funding debate on PLS economics.
So I say none.
Zola is potentially awesomely commercial but it just aint proven right ?.....only then will the CXO SP go nuts......but not till then Im afraid.
Our mkt cap based solely on Commercialising Grants and no Uranium value realisation, is stretched in my view, hence my sale.....reckon many others have sold down also for the same reasons,...I personally can wait on the sidelines for my big CXO allocation parcel.
No hurry till Zola drilled or Uranium asset sales announced.
GLTAH. DYOR.
GG
CXO Price at posting:
8.6¢ Sentiment: Buy Disclosure: Held
(20min delay)