My understanding is the ceiling only applies for 2 out of the 4 years of offtake with Yahua per 1/4/19 announcement, and based on the Ganfeng offtake announcement 9/8/21, it has a floor but no mention of ceiling. Both provide for pricing that is referenced/linked to price of 6% spodumene concentrate. These two offtakes represent around 80% of total production for 4 years, presumably after that they would be renegotiated or other offtakers/customers found.
The author of the article you linked to states "The short mine life (7 or 8 years)", and seems way off. LOM as other HC posters have suggested is probably more like 16 years now since the 6/3/23 BP33 MRE announcement.
So it's only for 40% of production for 2 years out of possible 16yr LOM. Looking at it another way it is 5% of LOM production being sold at the ceiling price and based on that I don't believe it is as big a deal as some commentators make out.
At the risk of stating the obvious, in the short/medium term, it seems more likely that apart from resource and/or production expansion etc type announcements, CXO and most other lithium companies' valuations recovering is going to be based on where the spodumene price heads from here,
- Forums
- ASX - By Stock
- Banter and general comments
- There are more pages in this discussion • 14,054 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add CXO (ASX) to my watchlist
(20min delay)
|
|||||
Last
14.0¢ |
Change
-0.005(3.45%) |
Mkt cap ! $299.1M |
Open | High | Low | Value | Volume |
14.5¢ | 14.5¢ | 14.0¢ | $999.4K | 7.094M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
16 | 562495 | 14.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
14.5¢ | 1865586 | 24 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
16 | 562495 | 0.140 |
77 | 3582780 | 0.135 |
62 | 2769990 | 0.130 |
27 | 963437 | 0.125 |
37 | 1103381 | 0.120 |
Price($) | Vol. | No. |
---|---|---|
0.145 | 1865586 | 24 |
0.150 | 3118297 | 58 |
0.155 | 3140263 | 48 |
0.160 | 3243800 | 45 |
0.165 | 1232837 | 38 |
Last trade - 16.10pm 02/05/2024 (20 minute delay) ? |
|
|||||
Last
14.3¢ |
  |
Change
-0.005 ( 0.70 %) |
|||
Open | High | Low | Volume | ||
14.3¢ | 14.5¢ | 14.0¢ | 3627147 | ||
Last updated 15.59pm 02/05/2024 ? |
Featured News
CXO (ASX) Chart |
The Watchlist
RDN
RAIDEN RESOURCES LIMITED
Dusko Ljubojevic, MD
Dusko Ljubojevic
MD
SPONSORED BY The Market Online