LARGE Li Discovery next to LIT

POS has discovered high grade Li at its Lake Johnston mines & large mill.
It can process the Li through a secondary circuit in its Nova sized 1.5MTpa large mill 100m nextdoor at LJ.

Li Prices Rocketing up
Li is the new gasoline apparently according to Goldman Sachs.
LiP was $10,000usT (as at 1 March 2016) but now is over 20,000UST!
well beyond the $5,900usT in Oct 2015 -

In September CNBC reported-
"London-based data firm Benchmark Minerals has information on recent price rises. The lithium industry is going through its strongest ever period of price increases, according to the firm, which signaled that prices were heading beyond $10,000 per ton in its latest analysis note on Feb. 15. Indeed, the price of lithium carbonate so far in 2016 was 47 percent higher than last year's average, it said last month. It also noted that the lithium ion battery market was 63 gigawatt-hours in size last year, but was set to grow to 85 gigawatt-hours by 2020."

http://www.cnbc.com/2016/03/01/as-oil-tanks-this-new-gasoline-is-on-a-tear.html

Yet by End May 2016 the LiP had skyrocketed -
"Lithium prices have risen to over $20,000 a tonne from about $7,000 a tonne last September, according to metals consultancy CRU. Industry website Asian Metal says lithium carbonate, the compound used in batteries, has jumped by 76 percent in the past 12 months. "The price of lithium today is incentivising companies to produce,” said Shaw and Partners analyst Peter O’Connor. “People are coming out of the woodwork with lithium.”

At 20,000ust/2204 = $9.08uslb x 1.36= $12.34 auslb
which is 238% higher than the current NP of $3.81 uslb, with Goldman Sachs very bullish on LiP-

"In a note last December, Goldman Sachs analysts predicted that lithium would be the "new gasoline" and said the abundant commodity was easy to store and would be a "key enabler of the electric car revolution."

The first call Goldmans have made in years that has been right!
at triple the NP, Li is the metal to mine with Ni as the by product at LJ.

POS a near term Li Producer
Many Li producers will take 5-7 years to build, finance and mine with capex of $600M needed,
POS can do it in 3 months at LJ with an amended circuit at their massive Nova sized mill at LJ nextdoor to LIT at low COP and low capex of ~$8M.

POS is weighted to be a near term Li producer years ahead of PLS or LIT!
It can even be a toller of LIT ore nextdoor at its LJ mill.
LIT MC is $90M more than double POSs! with no mill, no mine no toilets but has POS mill nextdoor
PLS MC is $730M with no mill, no mine, no toilets and no way to near term production.

so POS is 3x to 18x undervalued compared to these white elephants in the outback
if the POS Li is proven up which it will be POS can restart LJ as a turnkey mill fairly quickly well ahead of all other Li explorers like LIT PLS,
Whether its its spodumene or rocks doesnt really matter when you have a mill that can process both.
POS Li was established as being at a higher grade at 3.0% rocks v PLS Li grade of 1.4% spodumene.

remember POS had so much of Li they thought it was waste!