PLS Promotion Underway

Further to Pokerface's post a few days ago in which he stated that Neil Biddle would soon begin to promote PLS,  well RRS in their regular weekly newsletter had an update from the Beer & Co report which I include below for those who do not receive it. Nothing startling in the article that we dont already know but good to see some promotional activity being carried out.

Ten Bagger, Friday 10th April

Lithium production to charge up Pilbara Minerals shares, says new research report

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Against the ongoing backdrop of weak commodity prices, specialty metals continue to attract investors’ attention.
And while critics argue that specialty metals markets lack the transparency associated with their base and precious metals peers, history suggests that those who get the timing right stand to do exceptionally well.
And the time has come, it seems, for lithium, with its use in high-tech batteries driving demand.
Equity research firm Beer & Co this week highlighted what it believes is the significant upside for shares in emerging WA lithium producer Pilbara Minerals (ASX: PLS).
Beer & Co has increased its Pilbara valuation by more than 60 per cent to 17.3c a share (current ~4c), citing the recent resource upgrade at the company’s Pilgangoora project and the imminent start of production at the Tabba Tabba project.
Pilbara increased its resource estimate for Pilgangoora from 10Mt Inferred to 6Mt Indicated plus 16Mt Inferred. In the process, it lifted the exploration target from 15–25Mt to 25Mt– 30Mt.
Beer & Co noted that the grade of the resource had increased from 1.01 per cent to 1.38 per cent. “The value per tonne of ore has increased from $121/t to $125.6/t,” Beer & Co said in its latest research note. “This higher resource estimate has added 3c to our valuation.”
But the research note points to the start of production at Tabba Tabba as the short-term share price catalyst. It said Pilbara had expected to receive a Works Permit for Tabba Tabba in December last year but this had been delayed while the tailings dam was redesigned.
The Permit is now expected in May, putting Pilbara on track for production in June.
“As the ore is benign, and no chemicals are used in the concentration process, which is a gravity concentration process using spirals, the original design did not use a lining in the tailings storage,” Beer & Co said in its note.
“Pilbara has since re‐designed tailings storage, at an extra cost of $250,000, to have the dams lined with HDPE linings. The revised plans, with the re‐design, have been lodged and approval is expected in May, leading to first product by June.
“In our view, Pilbara’s promises are, at the present, just promises that a tough/cynical market is not prepared to buy. The promises will become reality in about two months when Pilbara produces saleable product, which then makes the larger value in Pilgangoora more real.”
Beer & Co said there was further upside to its 17.3c valuation once Tabba Tabba was producing cash.