GS also believe cxo may need another CR.
broker thinks the junior miner is likely to need anothercapital raiseto help it deal with rising costs due toinflation.
Goldman explains:
Given the more rapidly declining lithium pricing environment than we expected when we upgraded the stock to Neutral in Aug, we now see increased risk that funding from existing cash/operatingcash flowsmay be insufficient to fund BP33 development (which may be required to continue spodumene production as Grants pit production ends; FID targeted Mar-24 quarter), particularly with recent underground cost escalations, where, since the DFS in Jul-21, we estimate underground mining costs are up ~40% (on our bottom-up quarterly analysis of >30 listed Australian gold assets).
Goldman has placed a sell rating on Core Lithium with a reduced share price target of 31 cents.
Lets hope it does not come to CR and Li price stabilise.
The market does not have fate in bp33.... still too far out before we get report. Grant mine better produce that 90,000 tonne as stated.
Jhina has recently recorded a spike in copper import in Oct. Still to early to celebrate, it may be due the plan infrastructure activities to boost its economy. Once more is known where the copper is to be deployed, estimate for recovery can be forecast.
The ccp should guarantee all unfinished property to be completed so that the owners can start repaying their mortgage and get the cash flow circulating around the economy.
But the ccp need to build trust and prevent the outflow of cash to foreign countries like oz, nth america, Malaysia, Singapore and europe by their people buying properties in these countries.
There is little chance the large international companies
will move back to jhina, so there will be alot of vacant warehouse n office property. So the ccp will also need to boost local business activities like byd , nio and ant to expand their office by giving big incentives to these companies, ie. Tax reduction. Encourage hiring of more people by these large jhinese companies. At the same time, the govt can boost job opportunities by creating public servant jobs. Or encourage business to manufacture items that have been affected by inflation pressure(due to less suppliers) like timber, steel beams and items need in the building of new homes. All comes down to jobs jobs jobs to boost any failing economy.
This will create a feeling of a busy and lively mega city, which will attract more small businesses to reopen.
USA has done it well, bring back the jobs, made in America
Short term pain but long term gain, govt can collect more revenue tax and payroll tax and company tax in the future. But if businesses close their door it just becomes a vicious cycle.
The faster jhina fix its property crisis, the faster the Li price will stabilise. Then the rest is up to cxo
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