I hope you read this post @Gindaldan Putting this post in the...

First 322 Last

Share
Profile

Follow
gothechooks

588 Posts.

371

20/01/18

12:57

Post #: 30435943
Share

Originally posted by Pokerface ↑

At 5mtpa and at current concentrate prices, this business produces $800m US of revenue ($1bA), and $624mUS operating profit. This is based on concentrate prices of $1000US/t and costs after tantalum credits at $220US/t. These are not my numbers. These are company numbers per the Exploration Manager in recent presentations.

The 5mtpa operation is almost a given, if you have followed all the announcements.

PLS has been working on strategic arrangements with the likes of LG whereby they will potentially enjoy downstream profits. This will add a lot to profits; a lot!

There is a theory that Mt Fransisco may be a larger resource than Pilgangoora (which is huge, and much larger than the reported 156mt). There is a theory that Mt Fransisco will support a second 5mtpa operation.

The lithia at these operations are of the pure variety. This upgrades to battery and technical grade without the need for a further interediate expensive process, which the brine operators are lumbered with.

There are very strong indications that lithium prices are heading higher in the next few years. Yes there will be extra production coming on stream, but it is slow. The demand uptake looks exponential to me.

It is very much within the realms of reasonableness that PLS will have a profit model exhibiting > $1bA per annum net cashflow in the next few years, and there may well be strong indications they are sitting on a massive high grade resource. The uptake in the EV and battery revolution will probably coincide.

So, at that point, what is this enterprise worth? What did Greenbushes sell for way back when lithium was not even on the radar?

$7.50 would equate to around $13b market cap. (I actually think there is a strong theoretical case for a $20b market cap at a point in time in the future) That is by no means out of the question at that moment in time. Comparing PLS to some other resource company (like FMG) is not valid. Different mineral, different time, different quality of resource. Tesla has a market cap of $58bUS. Has never made a profit. Not saying that's logical, but it is real!

I am hanging on to as many as I possibly can, and have bought more in recent days. These sort of major industrial shifts do not happen often, and frankly, all my research says PLS is the place to be. None of the others hold any interest for me.

Expand

I hope you read this post @Gindaldan

Putting this post in the pool room . Should get a double century , and will see @Pokerface back on the front page of HotCopper soon . Check mate .

Cheerio , good weekend all , gtc

Last edited by gothechooks: 20/01/18

PLS Price at posting: 99.0¢ Sentiment: None Disclosure: Held
11 Upvote

0 Great analysis

Reply

There are more pages in this discussion • 252 more messages in this thread...

First 322 Last

Add PLS (ASX) to my watchlist

(20min delay)
Last $3.97		Change -0.105(2.58%)		Mkt cap ! $12.08B

Open	High	Low	Value	Volume
$4.06	$4.07	$3.96	$19.41M	4.851M

Buyers (Bids)

No.	Vol.	Price($)
49	151276	$3.96

Sellers (Offers)

Price($)	Vol.	No.
$3.97	97792	56

View Market Depth

No.	Vol.	Price($)
31	65567	3.970
47	207940	3.960
38	324400	3.950
26	102948	3.940
19	256070	3.930

Price($)	Vol.	No.
3.980	163384	61
3.990	162613	34
4.000	177109	33
4.010	185442	17
4.020	80928	15

Last trade - 12.50pm 02/05/2024 (20 minute delay)


Last $3.99		Change -0.105 ( 2.23 %)
Open	High	Low	Volume
$4.05	$4.07	$3.96	2318763
Last updated 13.10pm 02/05/2024 ?

PLS (ASX) Chart

I hope you read this post @Gindaldan Putting this post in the...

Featured News

Lithium Universe ends the quarter charged up for Quebec Refinery roll-out

Provident Aurum's off-market bid sends Sihayo shares soaring

Carnarvon revs up for revised Dorado Development

Why Princeton Professor rates BlinkLab's autism & ADHD screening app

Recharged Prospects: 'Watts' on the horizon for copper & lithium

Buyers (Bids)

Sellers (Offers)

Featured News

I hope you read this post @Gindaldan Putting this post in the...

Featured News

Top Stories

Lithium Universe ends the quarter charged up for Quebec Refinery roll-out

Provident Aurum's off-market bid sends Sihayo shares soaring

Carnarvon revs up for revised Dorado Development

Why Princeton Professor rates BlinkLab's autism & ADHD screening app

Recharged Prospects: 'Watts' on the horizon for copper & lithium

Buyers (Bids)

Sellers (Offers)

Featured News