Hi WindriderI was aware of the issues you raised and agree could...

Hi Windrider

I was aware of the issues you raised and agree could have an impact.

However I have caveats.

Some of the reduced costs are directly related to reduced royalties as the Spod prices dropped. But reduction in royalties would have an impacted on the other companies I graphed. Sure the economies of scale is another factor that contribute to cost reduction. However expansion does come with capital and logistical costs.

I like our downstreaming JV's. My only hesitation is I have seen nothing at all about what impact to sale of the end product of these JV's will have on the accounts. Prices across Lith related product outputs have been dropping seriously in the last year. That reflects in the graphs of companies I posted.

There seems to be an assumption that these big players in the market are less competent than PLS. They are all facing an industry headwind that directly relates to output prices and profitability which is reflected in their charts.

To imagine that all the factors you listed makes PLS completely immune from the reduced prices headwind, I think is a little like being in denial.

The off-take agreements you mentioned are at market prices. Guarantees a customer but doesn't lock in a price, so offers no price protection at all.

I await the Mar quarter report to see the $US Spod prices realised for the quarter. I analysed in my charts the SP performance of those 4 companies for the last year. In that time the $US Spod prices PLS achieved, in the quarterly reports, for shipped product were 4840 , 3256 , 2240 and 1113.

That's reality, no guessing involved. That reality impacted the 4 companies SP but had only marginal effect of the PLS SP.

I went back historically in the PLS quarterlies and in the June quarter 2021 the $US prices achieved for shipped product was $US825.

So in this coming quarters report, after the drop in 6 month from 3256, 2240 to 1113 an achieved price below $US1000 would not surprise me at all.

Last financial year 2022/23 the company recorded income of $AUD 4.1B, released in July and the SP was around 4.80's

Currently for the first 6 months of this financial year the income has been $AUD757m with the last quarters income being only $AUD264m. If the Mar and June quarterly income is around $AUD250m, say $AUD500m for the 6 month then this years annual income will be around 1.25B. That's a fall of 69% in income.

So 2022/23 Income $AUD 4.1b and SP 4.80's, My best guestimate of the 2023/24 income is $AUD 1,25b and yet the SP is currently is 3.80s

So reported income falls 69% and the SP falls 21%. Even allowing for some of your positive points, the difference is alarming.

Lets see if the Mar report $AUD income comes in at around $250m mark even with increased shipments. It's only 3-4 weeks away.


I am still curious of the current SP

cheers Lies