TARGET PRICE

On 23rd of March, immediately after KDR upgraded its lithium resource to be the world's biggest hard-rock lithium deposit, equal the current operating GREENBUSHS mine also located in WA, FOSTER STOCKBROKING issued a research report on KDR and placed a target price of $2.72 on it.

Since then, 2 more major milestones have been achieved by KDR: refinery location selection at KWINANA and today's news of its 1st off-take agreement with Tesla.  These are 2 major further de-risk elements achieved by KDR in a short few weeks.

So, I wonder how much value will be added to sp target by Foster Stockbroking, Blue Ocean, Hartley, Morgan Stanley...in their next updated report on KDR.  I believe we will see a target price of above
$3 - $3.20 soon.

Keep in mind that another off-take agreement with most likely VW or BMW or Daimler could be announced in the next few weeks.

Also, in the meantime I believe KDR is still drilling in the surrounding areas with almost 3000 historical holes reported intersection of lithium spodumene.  With plenty of money in the bank after option conversion, they now certainly can drill more aggressively and you never know when these drilling results will surprise us.

With further off-take agreements and funding options and DFS in the weeks and months ahead, plus potentially further drilling result surprises, I still think our market cap (currently about $780mil) will catch up with PLS's mc (currently about $1.6bil) towards the end of this year and that is 100% upside potential from here .  That is if PLS's mc stay still from here. If PLS's mc is up 50% from here towards the end of this year 2018, then our sp upward potential will be %200. The current sentiment to lithium investment has finally turned corner to a positive sentiment for 2018 after numerous events of late and it is therefore in my opinion it is not hard to see PLS mc to move up 30%-50% by year end.

KDR sp has been very aggressively controlled by 1 single party or two over the last few days but in the end it will go up to reflect the true price it deserves to be after 3 major de-risks over the last few weeks: resource upgrade, refinery selection, and Tesla off-take agreement (and also the next imminent off-take with a major European car-maker, VW most likely).