CXO 4.76% 10.0¢ core lithium ltd

At its best HC can be a very useful investment tool where ideas...

  1. 3,060 Posts.
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    At its best HC can be a very useful investment tool where ideas are shared about a stock assisting actual and potential investors to understand the merits and risks of a stock and make more informed decisions. This always needs to be combined with a good chunk of DYOR and considering who is posting.

    At its worst its been like Core's treads of recent months where thousands of low-value posts exist. Some of these posts scrape the bottom of the barrel in terms of factual accuracy or completely dismiss accuracy altogether. For some their objective is not to be accurate, informative or at least try to be, but instead to keep the fear going, to keep the idea going that there was no value in Core and therefore the share price should be progressively lower. With respect, it appears you didn't just nibble these alternative ideas, you gulped them down hook, line and sinker.

    The VA commentary you now repeat was from posters trying to create fear by tossing out terms related to how companies lost value. At the time there was no analysis as to why, it was just unsupported comments to create fear and trying to get the share price into low single digits. Most of the CR commentary is in the same category, especially in relation to Grants restart that has now been confirmed as having minimal capital to restart. Indeed Core has enough cash to fund the Grants restart and be undertaking exploration drilling.

    Background - why many projects do need CR's to restart
    The typical behaviour heading into C&M open pit operations is to retrieve any available lower cost to recover ore. Because C&M is even being considered, operations will frequently be losing money and due to that, cash balances won't be strong. If the existing cut was mined out and a new cut-back is required before mining ore again, there will frequently be a significant cost of that cut-back to enable recovery of ore in a restart scenario. The combination of cut-back capex and low cash will frequently necessitate a CR. This can lead to default thinking becoming restart = CR.

    Core is not in this situation because they have not recovered all the ore that stages 1 and 2 enabled at Grants. Core's cash balances are not low. Core has however made it difficult for investors and analysts by not clarifying the in ASX releases the extent to which waste rock within the mining plan has been shifted or providing any alternative measures of how they are progressing towards the completion of waste rock and ore recovery from Grants. This means a precise tons shifted are not available. With analysts not having that information, they are almost forced back to using rules of thumb and unsurprisingly some are suggesting restart = CR. Core has however now confirmed restart capital is minimal.
    Last edited by WhatsTheTip: 13/07/24
 
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