CXO was slammed -17.2% yesterday following a production downgrade in the process rewarding the short sellers i.e. the stock is the 2nd most shorted company in the ASX with -10.1% of the stock held short. The issues stemmed from production guidance in FY25 which was significantly lower than originally expected. i.e. they were meant to meaningfully grow production in FY25 from FY24 however they guided to a flat outcome YoY. We simply see no reason to argue with the professional traders and tape with regard to CXO.
Core Lithium Ltd is a $2bn Australia-based mineral exploration company focused on the development of Finniss Lithium project and other prospects in the Northern Territory and South Australia. In line with the tone of the market since COVID, the quality stocks have floated to the top like cream in old-fashioned milk bottles. A decent bounce in CXO wouldn’t surprise but it’s not a stock we would be comfortable holding during a market correction hence as such it’s not on the MM menu at this stage.
In line with most of its peers CXO has now halved from its April high as investors have unceremoniously fled from yet another speculative pocket of the ASX. CXO has already entered into a binding offtake arrangement with Tesla (TSLA US) to supply 110kt of SC from its Finniss Lithium project over the next 4-years. Encouragingly the company already has offtakes in place with Yuaha and Ganfeng again both over 4-years.
Core lithium is the ASX200’s star performer in 2022 having rallied +84% year to date, beating WHC by 4% at yesterday’s close. This $1.86bn South Australian lithium miner has entered the ASX200 courtesy of its stunning performance over the last 12 months, an especially impressive performance considering it’s not even started producing lithium although that is targeted for later this year. Considering Goldman’s view on the space and...
Core Lithium Ltd is an Australia-based mineral exploration company focused on the development of Finniss Lithium project and other prospects in the Northern Territory and South Australia. The Finniss Lithium Project located approximately 25 kilometers (km) from Darwin Port, Northern Australia. Its other prospects include Anningie and Barrow Creek (ABC) Lithium project, Copper, Zinc & Lead project, Yerelina Zinc project, Blueys and Inkheart prospects, Mt Freeling project, Napperby Advanced Uranium project and Fitton Uranium project. The ABC Lithium project includes five exploration licenses covering approximately over 2,500 square kilometers in and around the ABC Tin Tantalum Pegmatite fields in the north Arunta Region of the Northern Territory. The Yerelina project covers a total area of approximately 1,000 square kilometers in northern South Australia. The Silver and Lead projects include Blueys and Inkheart project in the Northern Territory. Uranium project, Copper project.
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