I'm not gonna hand over the likely very long financial spoils of a major project imminently ready expand to spew cash and supply stability for decades ahead to any new owner without a reasonable offer for it. I'm not gonna shank my fellow holders for a low ball offer when I know I'm holding a winning lottery ticket either.
3 bucks gets you my ear without being chuckled at or a seat at the table as you so well put it. But personally, I'm probably not keen on splitting with my share for less than north of 4 dollars a share atm and even then, that will be to the highest bidder and I reserve to move those boundaries upwards if CXO's position continues to turn develop well. Which it will.
Especially when that project has zero debt, a reasonably deep warchest of money now for rapid expansion into the future already waiting, a booming and highly demand incommodity expecting to see supply deficit into the foreseeable future and a growing LOM to grow with that global deficit and demand for its product.
Oh and the whole Hydroxide Plant thing which could be very helpful to whoever owns it for multiplying profits over again. Also could provide for the extremely cheap logistical supply security if you were a car company or major battery manufacturer for instance. Oh and I almost forgot about Barrow Creek! (which I suspect from the 4% rock chips and thousands if square km's of tenement in a historically rich area for mining and probably holds a lot of promise).
Plus there's also the gold at Finniss and Bynoe. Plus all the rest of the stuff in our portfolio like silver, copper, and the polymetalics Stephen Biggins probably carefully help picked for us to develop in future.
I feel fairly confident they likely found good drilling gound given the recent Satellite scans and my guess, given the recent 100 million CR is they are fairly motivated to drill hard at the moment.
We according to company releases in the past get about 1 year of LOM per 1.8 million dollars invested into discovery mining. This is already a very cheap ratio of cost per year of LOM added in terms of discovery. When you factor in the inaccuracies that the satellites might be able to help us eliminate plus where's better to drill, I reckon the LOM could get even more efficient.
That is quite exciting particularly when you consider they put 25 million into drilling for next year, (almost double of this years budget) which I suspect by end of calendar 2023 could deliver us a 30 year LOM all things going roughly to plan.
They've managed to lift the LOM for 8-12 years so far with more to come. Recent unincluded results also include the recent major announcements around BP33, which has effectively quadrupled from estimates, plus extras from Grants deposit and others.
I reckon looking north of 15 years LOM by this years calendar end is absolutely in the bag already.
Then there's the fact that were one of the lowest cost producers in the world and the fact that our product in terms of adulterants in the spodumene with low levels of things like and iron which has to be separated and chemically removed by hard miners in WA also makes us a very appealing project.
But yeah, let's see what happens with Tesla, it could lead anything at this stage and I'm open to suggestion from other partners if it all goes pear shaped.
In any case, we have excellent fundamentals, were effectively derisked and were turning the cashflow on right at a time when it's needed in a world experiencing diminishing returns for investors and owners in many industries. The business case for CXO is only going to get stronger in time.
CXO Price at posting:
$1.16 Sentiment: Buy Disclosure: Held
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