PLS chart, page-19884

We’ll find out if their substantial holder notice goes under 5%. I doubt it. I suggest they will accumulate more, taking advantage of the price weakness from the short action. So they make fees from making shares available to shorters, accumulate more at lower prices, get their original shares back and wait for the inevitable turn around to get the value back, and some. Sell into the irrational exuberance as the Lithium price enters the next supply shortage.

Let’s assume PLS drops to a $8.5-9B MC. Let’s also assume the Lithium price stays in the toilet and PLS ends up with approx’ $1.5B in the bank at EOFY2024. A TO attempt may occur as $10B with a premium attached would now be in the sights of many. PLS, a Tier 1 asset, with 34 years at 1Mt at the low end of the cost curve, expansion construction well under way, midstream product JV construction underway, Posco JV ramping. This company is the stuff wet dreams are made of for potential suitors.

Here’s the thing. Aussie Super now have a track record of blocking TO’s. The patriotic side of them. I hazard a guess, they see something brewing like I’ve outlined above. IMO, they may play a similar hand as they have with the Origin TO attempt.

One final point. The entities that loant out shares to shorters. They expect to get their shares back and not lose value on their investment. They are well aware this is a game they won’t lose money on.

Patience. Watch the show. It is a show with smoke and mirrors.