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25/08/16
13:11
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Originally posted by Wombat2
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Hi All
Ok I am going to go out on a limb and make a prediction that the next two weeks or so will be ENORMOUS for the company. I believe that some form (s) of corporate action on PLS are but days or weeks away. My reasons for this are as follows:
1. The Massive Upgrade in Reserve.
There is now no reason to doubt the size of the Pilgangoora deposit and with more drilling it will grow larger and larger. The directors believe 200m tons is possible/probable. It is now the most attractive spodumene deposit on the planet that is not tied to any one customer. The Chinese are experienced and geared up to process spodumene. It is just a great fit for them.
2. Script Offer from MIN
Clearly MIN have their sights on obtaining control of the lithium supply from PLS and if they think that they cannot do it via the FROR mechanism they, IMHO, are likely to launch a takeover bid. Speaking to a number of colleagues and friends they believe this is likely.
3. A catalyst for change from the release of the DFS.
This is possibly 10 to 12 days away and could be a catalyst for some form of corporate action if the financial forecasts are really compelling. I think that we all know and understand from the PFS that the IRR and payback results are likely to be sensational.
4. The Binding Offtake Agreements are NOT finalised
The fact that 60% of the potential production has not been locked away provides a great opportunity for a company to launch a take over and seize control over the unallocated production but also determine what the future production output levels will be. I am sure that Chinese corporations are well funded and could absorb the output from a 6m ton pa plant.
5. The Barbarians are at the castle walls.
Just a turn of phrase on my part but we have heard this week how one group allegedly Tinci have a large group of people working at PLS head office. If they are not here planning a beach holiday then it must be much more serious such as a major capital injection and or a take over. The Americans have been regular visitors over the past two years according to NB many months ago and they are just as needy as the Chinese.........think Tesla for a start but they are not the only US companies in need of lithium.
6. Guess who is coming today?
I have heard from a trustworthy source that yet ANOTHER Chinese group will be in the office TODAY which could herald significant competition for our offtake volumes and/or company. This suggests competition has developed amongst Chinese companies,
I am also greatly swayed by Super Ninjas recent amazing posts and his conclusions contained therein and when you look at the above factors yes I am now brave or stupid enough to predict that something HUGE is just about to happen and that in September we will see someone move on PLS either to take control of supply or more likely take over the entire company. It is just a matter of time in my opinion and like Super Ninja I dont think they need to wait for the DFS before things start to happen.
Let the games begin !!!!!!!!!!!
Cheers W2
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This would also explain why the share price is being so tightly controlled in this price range. No matter what is bought they quickly act to steady it downwards, to minimise the moving average % price premium they are likely to pay. Little point though as there is likely to be a bidding war as soon as someone moves on this. I would expect 2-3 revised offers with 2 parties min.
Last edited by
wot :
25/08/16