I am fine SF and I know commodity prices are up, and another advantage for PLS right now is that it seems to me that it has the market cornered.
But things
don’t keep going up forever.
And it
also seems to me that PLS does have rather a lot of large expenses due.
Thinking about this DOES NOT mean there is anything wrong with me.
- I think it’s a reasonable query.
Hilldweller says Ken has plenty of credit to draw on.
spoiler: Debt Facilities
Re potential upcoming costs I have :
POSCO : the plant is supposed to start construction very soon if it has not already, and they want to power up asap to two trains.
-Is PLS expected, as a JV partner, (initially 18%) to contribute to total funding “expected to be between US$700m to $750m”?
If so, when?
Pilbara’s ‘initial’ stake - if it stays that size is - I think - US$126m all up (at $700m) by third quarter next year?
spoiler: POSCO DEAL
CALIX?
Word in the December update was trials are going well.
[Original MOU].. “The scoping study will run until late 2021. If positive, Pilbara Minerals and Calix intend to form a Joint Venture to build a demonstration facility, starting with a Definitive Feasibility Study (DFS). The contemplated facility will be capable of up to several thousand tonnes of lithium salt annual production capacity, and the JV will also market and export the product from the facility, “on-shoring” significant value into Australia and avoiding the international shipment of thousands of tonnes of waste material (>90% of current spodumene exports) overseas..”
On
[December 21]:
“Nextsteps:
o Economic and commercial evaluations contributing to a completed Scoping Study early in the New Year.
o Subject to successful completion of the Scoping Study, progress negotiations for the formation of a joint venture.
o Agree a work program to develop a Demonstration Plant and ultimately commercialise the Mid-Stream Product’s process technology….”What
@GARETH78 wrote about PLS potentially wanting acquisitions from the power position of nearly an $11m MC makes sense as well.
The company is currently valued at a near equivalent to MIN.
Wodgina is still not officially in production and won’t be until third quarter! but ‘on the street’ I have heard the place is ‘pumping’ right now.
What if it starts up earlier than expected with one or even two trains?
I think it
would make sense for PLS to exploit its current power and build for even stronger if there was opportunity. And that would likely cost money.
But who knows?
Just time .
Cheers
(20min delay)