PLS chart to start 2019, page-1862

I suspect this current SP sell off is not because of the AUDUSD sell off making the numerical 850 figure. The bond debt is clearly in USD with a 12% rate again in USD. The converted price they receive is better now with cushioning effect of FX but they have to maintain their debt obligations in USD. This must be the issue ie. debt sustainability because the selling has been very aggressive and diverging from the sector since the announcement of the issues of customer conversion together with their opex problems. The Spod/LiOh bearish trending price is the reason why the longer term trend in the entire sector has been down for 1.5Y.

A40 is just a confirmation or a precautionary note that folks are starting to view the enthusiasm through the eyes of what unsustainable debt can do exponentially to the valuation of a company. The future of PLS will depend where Spod price rock bottom is. The other takeaway I am sensing from the no JV project sale is that either the terms are not beneficial to PLS , the valuation is based on the rock bottom metrics or simply no one willing to step up and do the JV.