Spodumene Prices, page-3928

Finally holders are waking up to the fact that the market is in oversupply. It took you guys a while, but I guess better late than never. The market has been screaming this for ages but many only believe it when it's blatantly obvious. The running down of intentories narrative was a good one that producers ran with but it got a bit long in the tooth after a while. I mean, there's still a section of the industry still running that narrative. Still running down intentories for over 12 months? Come on! And we've also been hearing for months that inventories are low, but still no restocking event. The fact of the matter is that there is enough raw material production to meet demand.

The problem now is that PLS is currently priced as if the price of SC6 is way higher than it currently is. I'd say PLS's current valuation is as if the price of SC6 is US$4k/t. The price of spod at the moment is a fraction of that. And remember PLS produce SC5.3. If you're a holder you should be happy with the current share price. It really deserves to be around $2. The positive is that at 20%+ shorted, the big end of town are already heavily positioned, so that may protect share price downside to an extent.

There's rampers on here still spewing nonsense like PLS might even pay a 10c dividend. I'd love to know how they calculated that given PLS have a stated payout ratio of 20-30% of profits. I dare say they're pulling figures out of their rear end - much like a lot of holders seem to do. PLS won't even make a 10c profit after tax this FY. And that's even after plugging in optimistic figures.