AJM is big news, and unfortunately very sad news. Condolences to...

AJM is big news, and unfortunately very sad news. Condolences to any and all AJM holders.

Unfortunately it would seem that nearly 3 years of a depressed sector and its depressed prices have claimed another victim. AJM has the lowest operating costs of all the producers too didn’t they? Sub $300?

I guess AJM & A40 scenarios also highlights the potential risk of large debt packages...

Anyway, I think this proves that managements decision to put the project on the back burner until the sector improves is the right one. Had we just gunned it just because we wanted to be a miner then we probably would have ended up just like AJM/A40/Wodgina etc.

I think it also proves managements approach in getting finance/partners is also the right one. We are told potential offtake partners are banging down our door, but there is a big difference between any old deal and the right deal. The right deal being prepayments/government funding support etc. Diversifying customer base is also the way to go, which is what Cxo is doing.

Perhaps this also highlights Cxo advantages which the market constantly seems to overlook: DMS only plant, low capex, low costs, $9/t transportation costs, location and logistic advantages etc etc etc. These will come into play in a big way.

And finally, being more then a one trick pony also has its advantages. While waiting for the lithium sector to improve, Cxo has the luxury of pursuing projects in a number of different commodities should we want to. LTR too.

AJM, had quite a decent customer base too. What does all this mean for them..?

IMO

GLTAH