Not sure if this will reopen doors. I hope all reply comments are civil.
Firstly I think that there is growing enthusiasm for the lithium industry again. Second, the consolidation seems to be a success with institutional investors and a weekly rise in SP. I think this is correlation rather than causation but I am pleased that it is correlated.
Some at the PLS forum say that after the apparent success of the GXY consolidation maybe PLS will be wise to do the same one day. But the fundamentals are different.
Assume for this comparison that:
* The profit rates will remain the same.
* Pilgangoora plant has slightly higher capture rates. Than Mt Cattlin.
* The value is 10x profit.
* The 2MT processing plant is adopted by PLS with feasibility for extensions to follow.
* SDV is completed after a 30% sale down.
* James Bay is completed without constructing an additional processor.
* Value based on cashflow.
* Prices remain robust.
MT Cattlin:
1.6MT name plate processing resulting in 160 kT spod assume profit $400 per T
10x profit for value over 400M shares
= $1.60 value
Pilgangoora:
2.0MT production resulting in 250 kT spod assume profit $400 per T
10x profit for value over 1.2B shares
= $0.83 value
Sal De Vida
17.5 kT production after 30% sale down
Assumed profit $10,000 per T
10x profit for value over 400M shares
= $4.38
James Bay
Assume same as Mt Cattlin
= $1.60
PLS potential about 2x current
GXY potential about 3x current
GXY Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
