CXO
CXO
Risks
Pinned straw:
In case no one knew, CXO share price has fallen dramatically
In summary it is still generating cash,
50% recovery rates. Higher cash costs.
Production guidance reduced.
I think it will be hard to bridge the gap on Lithium supply if mines like this underperform. Simple solution to that is buy something that has a bigger deposit than Core.
Only thing to look forward to is exploration upside at BP33 but that is an underground operation.
Tempting to buy here but this is still at a market cap of 1.1 billion.
CXO may have a solid total amount of lithium, but it is in thinner bands with high strip ratios meaning high cost to extract.
As more supply comes onstream, high-cost producers like CXO will suffer.
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