dont get me wrong, I haven’t lost faith in the EV revolution. It is going to happen, the lithium sector will turn and grow exponentially.
and I definitely haven’t lost faith in Cxo or its projects. Some of the highest grade and quality spod in Aus, low impurities, low operating costs, second-to-none location. These are/will be extremely valuable advantages for Cxo.
The fact that we aren’t producing right now and are debt free really is a blessing as it offers us flexibility: if the sector doesn’t improve we can go the DSO option (if profitable), or just weather the storm and sit it out.
The fact that we have multiple projects in copper, uranium, silver, lead, zinc is another huge advantage and gives us even more flexibility. We can turn to these IF the lithium market doesn’t improve. Many of our peers don’t have this luxury. As a contingency plan I would be in favour of allocating a small amount of resources and/or exploring JV opportunities for some of these projects.
I still think that by year’s end we will have 15MT-20MT in resources, with hopefully a new discovery or two, an approved MMP, a bunch of resources converted to higher confidence category, and hopefully a second concentrate/DSO offtake, a fines offtake, multiple financing options such as Primero BOO, and further reserves, updated DFS and increased mine life to follow.
And finally, here we have Cxo:
* Australia’s next lithium producer * high grad spod * low grade impurities * second-to-none location * low operating costs * no debt * reserves base * DFS * offtake partner * mineral lease/mining licence * environmental approvals * MMP, additional offtakes, finance options and increase in resource base in the pipline * projects in copper, uranium, zinc, lead and silver
.....and right now we are valued at under $30mil MC!
If ANYONE wanted a cheap entry into the lithium sector, Cxo would be an excellent opportunity to do so. In this current climate, $70-$80mil could be enough to get us. $70-$80mil equal to about 8.8c -10c a Share. An absolute steal, robbery in fact, but could be enough. The lower our SP falls, the more likely I feel we could be a cheap taker target.
at the end of the day the only thing I am unhappy with is the level of communication. Communication is incredibly important to any company, and I feel our company could be much better in this regard.
all IMO
have a good weekend all.
fingers crossed for news next week
GLTAH
CXO Price at posting:
3.8¢ Sentiment: Buy Disclosure: Held
