PSC Charts, page-6

Hi there,

Yeah i try to look at it completely isolated from the fundamentals. So if i only viewed the stock from the chart, the technicals show the support at 10c. If it can hold above 13c for a few days then that comment will change.

100% agree that smart money is positioning now. I don't make that comment off hand, but as suggested given the placement was at 13c. That is what we're referring to as "smart money" for those wondering. if they are prepared to take 6M in a placement at that price, rightfully makes sense that they will buy on market at that price. Share are issued today and they will want a return, expect this to push higher.

I hadn't actually read the MOU in much detail but watched some video interviews with Sam last night and now realised that the MOU wasn't just for offtake it was actually for a potential take/over or acquisition of stake. I probably hadn't appreciated that PSC had attraced that level of attention. I would then maybe highlight that it's in U1's best interest to keep the S/P under wraps. However, we're now coming out the back end of the lithium glut. meaning this is the absolutely lowest point of spodumene pricing and lithium demand and that with every week and month that due diligence is dragged out or delayed. It works entirely is PSC's favour. As their bargaining position will only improve from here. Furthermore, i think U1 also runs the risk of left field parties potentially coming in and taking what's left in terms of offtake, which again will mean PSC is potentially positioned to proceed down FID regardless of U1 or not.

The way to absolutely maximise ones return is to just proceed towards production and not parade themselves for takeover. IMV PSC is just pushing on irrespectively. which is great.

Most companies with offtakes secure IMV are typically priced at around 20-40% of their NPV.
For context, that is what the like of AVZ, LTR, PLL etc etc are currently valued at. whilst PSC is currently valued at around 5% of it's NPV and is further advanced than all 3 IMO. PSC's market cap should be approximately 100-150M at it's current development level. In time market will eventually price PSC accordingly, finance is a matter of when IMO, and expect spodumene pricing and petalite pricing to push back towards 500-600USD for 6% Spod towards middle of 2021. Given PSC's low Fe content i expect their PFS spod pricing to be a fair reflection of market value at that point.

SF2TH