Dividends are also paid when cashflow exceeds good deal...

Dividends are also paid when cashflow exceeds good deal flow.

Nothing worse than a company awash with cash that buys average assets at inflated values and then proceeds to mismanage them into the ground destroying shareholder value.

If US$7k/t is sustained, the CXO board will be hoarding some cash to drill and grow our resource well beyond 20 years, including Barrow Creek, setting aside CapEx for stage 2 expansion and preparing to stump up a 30% stake in a lithium chemicals plant with an existing chemical producer.

We bring a growing resource, security of supply and US$300m to the table and they bring technical capabilities to design, build and operate a plant and marketing channels to sell qualified material to battery cell manufacturers.

At >170ktpa, it won't take long for the CXO board to save these pennies.


Remember, if its not qualified material, its industrial chemical that goes to grease and ceramics production at a lower price or off to be reprocessed by a qualified producer like our offtakes Ganfeng and Yahua.

Hopefully, there will be plenty of surplus cash to oil all the wheels of this money printing machine.

Be realistic though, it will take 6 to 12 months minimum from first ore feed for this plant to be properly commissioned and then years of optimisation.

PLS is the case study for CXO to follow and their capital management plan, which will be released in Dec 22 or Jan 23, will be illustrative of the available options.