Australia's largest stock trading and investment forum Australia's #1 stock forum

CXO

0.00%

10.0¢ core lithium ltd

So why did CXO get downgraded to $1 ? unless your figures are...

First 1352 Last

Share
Profile

Follow
iamagenius

6,598 Posts.

474

09/12/22

09:35

Post #: 65234593
Share

Originally posted by Whisky49 ↑

Li2O content 5.5%-6.2% .Avg.: $US 5,510/t

Thats probably a reasonable guide to contract prices currently although likely higher and puts a margin over AISC costs of around $US5000 so where would that leave CXO when fully ramped up to around 180,000tpa, very nicely as it so happens.

Gross revenue $US991m
Nett of AISC $US900m
Nett of tax $US630m or $A926m at today's exchange rate ÷ SOI 1.838b = 49c per share vs current shareprice $1.18

The above is very approximate and variables, especially Spod price and the exchange rate, are considerable ,however they could just easily be better than worse over the short term. Also note ramp up to full production will take a while and any margins during ramp up will be lower.

The intention here is just to point out that we could have the margin at half the above and would still be very profitable and the current shareprice a bargain IMO.

Spod prices will soften over time and the $A strengthen but anyone trying to put a figure on that in any particular timeframe is guessing and we can do that ourselves just as easily as a institution and be just as biased..

All this is done from a strong cash position and no debt...from a perception point of view CXO does have very small resources and lower grades compared to some but that doesn't change the companies profitability and that will be the biggest driver of the shareprice over time , production will evetually increase and downstream conversion likely follow at some point.
More important than resource size and grades is the fact we are about to go into concentrate production, its not years away.

The World has not ended...

Cheers Whisky

Expand

So why did CXO get downgraded to $1 ? unless your figures are underestimating risk?

CXO Price at posting: $1.18 Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

The market's shrugged at China's stimulus measures all year. Why is this one different?

The winners & losers on market if negative gearing were gone

NAM

ACCC seeks Olam divestments before it can buy Namoi Cotton

STK

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

COD

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

DEG

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

ESR

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

KAL

KalGold rolls out detailed aeromagnetic survey across Pinjin project

Week 39 Wrap: What HotCopper’s watching; China’s new stimmy moves boost metals; Oz CPI drop

There are more pages in this discussion • 16 more messages in this thread...

First 1352 Last

Add CXO (ASX) to my watchlist

(20min delay)
Last 10.0¢		Change 0.000(0.00%)		Mkt cap ! $214.3M

Open	High	Low	Value	Volume
10.0¢	11.0¢	10.0¢	$1.502M	14.37M

Buyers (Bids)

No.	Vol.	Price($)
78	5970714	10.0¢

Sellers (Offers)

Price($)	Vol.	No.
10.5¢	250000	2

View Market Depth

No.	Vol.	Price($)
60	4873822	0.100
10	526569	0.099
10	358265	0.098
3	220309	0.097
5	1200005	0.096

Price($)	Vol.	No.
0.105	250000	2
0.110	6839988	87
0.115	2570220	41
0.120	2208891	32
0.125	1526049	28

Last trade - 16.10pm 27/09/2024 (20 minute delay)

CXO (ASX) Chart

So why did CXO get downgraded to $1 ? unless your figures are...

The market's shrugged at China's stimulus measures all year. Why is this one different?

The winners & losers on market if negative gearing were gone

ACCC seeks Olam divestments before it can buy Namoi Cotton

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

KalGold rolls out detailed aeromagnetic survey across Pinjin project

Week 39 Wrap: What HotCopper’s watching; China’s new stimmy moves boost metals; Oz CPI drop

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

So why did CXO get downgraded to $1 ? unless your figures are...

Top Stories

The market's shrugged at China's stimulus measures all year. Why is this one different?

The winners & losers on market if negative gearing were gone

ACCC seeks Olam divestments before it can buy Namoi Cotton

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

KalGold rolls out detailed aeromagnetic survey across Pinjin project

Week 39 Wrap: What HotCopper’s watching; China’s new stimmy moves boost metals; Oz CPI drop

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News