To be fair ltr should be worth more than 20x gln.
Resource in ground is meaningless if you don't monetise it. Pmt has its unique challenges.
Ltr has close to 20x of built capacity of gln's never never 4ktpa. It comes down to speed to market and timing that market. In brine world you raise capital to fund capex in the boom and you come into production in the bust of the cycle. Such is the nature of the sector. Pls managed to pocket close to 3bn in cash over the last boom, in 2yrs mind you. No I dont hold either so no natural bias here.
Hard rock while being a lower margin business is lower capex upfront and comes online much quicker with much larger scale. Slimmer margins are more than offset by volume and producing during peak pricing.
Brine, lacks success stories despite promises of high margins and cycleproof cost position. How many new greenfield brine projects have actually contributed meaningful lce units over the past 10yrs. Its a tough sector.
On gln it's not a near term producer until the plant starts getting built, even then it needs to be proven to work. When construction will commence nobody know but personally i expect timeline to be nudged out further, gently. They used to move production by a quarter now its half years.
It buys time if nothing else and hopefully by then the pricing is a little more conducive and further dilution minimised.
Aimo
GLN Price at posting:
10.5¢ Sentiment: None Disclosure: Not Held
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