Good News & Bad News, page-37963

With SC6 at US$900k/t, PLS is barely profitable with its SC5.3 product. That's how I come to a valuation of under $2.5. It's not an exact science, I just know that at $3.30 and a $10b valuation, PLS is insanely expensive for the tiny profits it's spitting out.

At a $10b valuation, PLS should be making ballpark $1.5-2b net profit. That's in the ballpark of what the other resource stocks on the ASX are doing on a valuation to profit ratio. So in order to get that valuation, SC6 needs to be well in excess of $3k/t. I'm just saying $3k/t to be generous, which is still 300% above the current price of spod. Hence why PLS is absurdly expensive. Either the price of spod turns around quickly, or the share price is going to get one heck of a rude awakening.