I would be very supportive of CXO demerging uranium and even the gold via an in specie distribution to holders.
"In specie is a term which literally translates to 'in its actual form'. This refers to the process of distributing an asset in its physical form rather than selling it and then distributing the proceeds."
Examples 1/ Neometals when they distributed Widgee Nickel - WA nickel assets (issued 1 WIN for every 4.218 NMT held) , and 2/Atlantic Lithium with Ricca Resources - African Gold assets (issued 1 Ricca for every 8 ALL shares held).
For longterm holders and pure lithium players it gives individual holders the choice on holding long or selling for a quick $ or quasi dividend.
It's a really good corporate strategy when 1/ the market value of these assets are not reflected in the share price, like CXO's JORC uranium assets in NT or 2/ when the company has timed production in a decade long booming market and needs to evolve from speculative explorer, who is chasing rainbows to survive, to be a strategucally focused producer that attracts the big money it needs to lock in market share/opportunities for holders (before the pack catches up) - Sounds familiar
This is where CXO is currently. It needs corporate focus to execute its plan into production. To achieve this, it needs to attract or retain world leading talent on its board and a management team with production expertise in order to have credibility with financiers and institutional holders to pursue multi billion $ opportunities that will supercharge value for holders.
There is a small window to achieve this before dominant players emerge and curtail growth pathways for first followers.
Watch the big fish stealing lithium multi baggers from long term holders as we speak.
Timing and speed to market will be everything in the next 5 years. In a rapidly expanding lithium market, the early producers will have the free cash flow to buy out cash poor explorers or distressed developers whenever there is a broader market correction or as they drill out a JORC resource and the market doesn't notice because it is detracted by another shiney opportunity.
CXO's restructure and streamlining as a specialist lithium company, at this stage in a decade long boom, is a 'must do in 2022' for its long prosperity/survival as an independent producer.
Sorry long read, but I needed to get it out
2022 is going to be huge for CXO holders.
GLTHA DYOR
(20min delay)