I do like your price modelling methodology ddzx. I've seen it on...

I do like your price modelling methodology ddzx. I've seen it on several company threads.

What about risk overlay though? As a casual observation I've noticed you get most excited by the big return numbers. However, from my experience the big multiples always correlate with the highest risk companies. Many of which will not make it into production as per the common story of this sector on the ASX.

De-risking is a cornerstone fundamental for all astute investors. Not so much for traders as they don't tend to hold long enough. However, for retail investors they must rely on the information provided by the company. That is why the quality and credibility of studies is so important, especially the final FS.

CXX has been de-risking this project very well since acquiring Panda Hill and routinely keeping the market informed with quantitative results. It is the quality and quantity of study work done by CXX that has de-risked this project. It culminates with the high quality DFS just published and is consistent with their past good quantitative work. Pity that very few junior miners present this sort of quality study because they take short cuts or bring in the spin doctors.

Chasing big or high multiple return numbers with any sort of substantial outlay is foolhardy even for self respecting traders, let alone investors. As the saying goes ............ the higher the risk, the higher the return; but the higher chance of failure also.

I've always found that the best way to increase wealth via the ASX is to invest in companies that support their claims of de-risking with evidence provided by quality studies. The more de-risking then the more one can risk their money incrementally. Conversely, I try avoiding the ones with studies containing spin and overly optimistic figures. Although spin is often hard to detect and takes much experience to apply. Good for a trade though as the gullible will always fall for the trap.

Most importantly for this thread, I'm not detecting any spin from CXX. On the contrary, I'm feeling reassured that this company is doing a very good job and is well on the way to make that giant step from explorer to producer. Trade the high risk companies to satisfy the greed and thrill genes, but invest in the lower risk ones to build real wealth is my motto that has held me in good stead for many a year.

Bottom line ............... it is not all about the number multiples as it should be all about the risk!

Cheers