I believe CXO has the worst pre-strip CapEx I have observed in...

I believe CXO has the worst pre-strip CapEx I have observed in recent times at $34m AUD due to the extensive weathering profile that is found across tropic Australia compared to GL1's mild $17m AUD therefore it would potentially appear to be a flow-on effect of requiring a fines circuit. Comparing to ESS who similarly require a DMS [coarse spodumene] and flotation circuit [fine spodumene] and whom require CapEx of $293M, it may be a sign of the times with inflationary pressures. The stock you hold will give a good idea about potential inflationary pressures when they soon release their scoping study as I do not believe they will require a flotation circuit due to the coarseness of their pegmatites.




I would fine it hard to believe if someone could not see that strip ratio is the killer [ratio of ore mined to waste mined]. And one could even argue a case for not mining the South-Eastern Domain to lower the strip ratio at the cost of a lower overall head-grade.

ESS required $293M CapEx.

The resource is still open but it is unlikely to change the fact that the pegmatites are steeply dipping whereby the consequence is a higher strip ratio if they want to get to the bottom of the resource. Resource extension would then open up economies of scale but the width of the resource likely won't change drastically.