Core Exploration (CXO) - South Australian Copper and Uranium

[SCHUMACHER]

Well done guys - needless to say im very very happy

[BRICKY]

I'd like to Thank you too Shumacher. Just hit 8c.

[SCHUMACHER]

I'd like to Thank you too Shumacher. Just hit 8c.

well done Bricky - its nice to get a good win - i believe management are a big part of CXO success -

[mcdongle]

Good announcement today..

[Scrunch]

Anyone still looking at CXO?

Since the earlier posts on this thread CXO has released a definitive feasibility study and subsequently updated this study. Earlier this year they issued $40m of shares at 25c providing some, but not all the funding necessary for the planned mine's capital expenditure which is estimated at $89m. They have indicated a final investment decision is due later this year with other actions of the company indicating this is very likely to be a decision to progress with an open pit mine at the Grants and Hang Gong while undermining would occur at BP33 and Carlton. This provides at least a 7-8 year mine life with more exploration occurring aiming to extend this mine life.

There was a brief spike up to 42c on 29Jan2021 but then fell as low as 17.5c on 9Mar2021. After a period in the mid 20's they have broken out to 32c today.
This increase today is on very strong volumes - Direct Broking quotes 57,079,668 shares traded today (5% of shares on issue), putting CXO as the 10th highest volume of all shares traded on the ASX today. The $17.6m of shares was the highest turnover of any company with a market capitalisation under $500m (SYA: Sayona Mining which now has a market cap just over $500m was also up strongly +20% on $25.6m of shares traded)

Disc recently bought

[NZSilver]

Yeah I bought a few, not necessarily a good sign as I have had poor success with mining and generally stay away, but it looks like they have everything they require now to begin building the mine and become a production company. Other positives are close to infrastructure for ore shipment, aussies based mine (low sovereign risk), rock lithium (vs brine), ganfeng onboard, local and central government onboard, cashed up now. From what I can tell the only disadvantage for them is the lower mine life cf pairs which will hopefully be extended with more exploration. It really seems demand for lithium with outstrip supply as the need for batteries increases significantly.

[nztx]

Likewise jumped in with a few - looked interesting with offtake agreements, Cap Raises & things happening

down 17% so far , but hopefully will come back..

[Scrunch]

Likewise jumped in with a few - looked interesting with offtake agreements, Cap Raises & things happening

down 17% so far , but hopefully will come back..

Should do. It would appear the market is still valuing CXO as an unproven explorer, rather than a producing miner in just over a year. While its great that the spodumene prices are increasing, the CXO DFS used US$743 and an updated example at US$850. Both these materially understate what is likely to be the case so tend to negatively anchor the share price.

HC chat has indicated the price is now north of US$1,000. The recent ORE results presentation (page 18, link below) has confirmed that recent sales for spod are US$1,000 ton. This is well above what was being used in the NPV calculations within the recently released DFS.

From a revenue perspective, we know CXO are exploring a 10-yr mine life with a phase one max production of 193,000 tons per year of spod. Treating any "fines" revenue as an expense reduction, there is over $250m/yr of revenue at current AUD-USD exchange rates. The stated mining costs (ex tax) are less than half of this so there should be a very good profit margin.

http://research.iress.com.au/IDS/old...091850000&ppv=

Disc - recently bought more

[NZSilver]

Breaking upwards

[Scrunch]

Likewise jumped in with a few - looked interesting with offtake agreements, Cap Raises & things happening

down 17% so far , but hopefully will come back..

You can't be down now, CXO has jumped up 27% today to A$0.445 which is a new all-time high close. Big volume today which was in the top 10 for shares traded @ 81.2m shares. From a value perspective the $32.9m traded was in the top 75 companies by value. That sort of volume needs the insto's.

The cause of the jump over on the HC channels isn't exactly clear because there hasn't been an announcement. The results of recent exploration/resource confirmation haven't been announced and neither has the FID. While I like that the price is up, I prefer to know why big share price movements occur.

Some of the possible candidates include:
>Catch-up with LTR that started Sept under $1 and is now $1.475?
>A news leak for new info in the up-coming FID?
>A news leak for new info in the up-coming resource updates?
>Recognition that contracted Spod prices are circa US$1000?
>Speculation based on what spot Spod prices are now?
>Speculation on the results of the 2nd PLS auction that I think was today?
>An influential broker commencing coverage a strong buy rating? (although Market screener doesn't yet have any forecasts)

DYOR