Good News & Bad News, page-2119

Hi Greendude,

At first glance on a surface level your calculations may seem reasonable but there is so much more to take into consideration with a company like PLS. As a summary in my opinion:

- $700USD/t over the LONG term may be about right, however in the short-medium term trends have suggested that CURRENT prices FOB are pushing $1000/t, with reporting agencies citing $850-900 at the moment bearing in mind they are a couple months lag also.
- There is very limited additional supply likely to come on board with a meaningful presence over the next 2-3 years, and with little additional supply in site I suspect that these will go higher
- Sales from the Altura plant will be sold on their new auction platform, and again we will just have to wait and see what pricing we get, but I suspect this will be $1000/t+for the short-mid term
- Value add propositions from both Posco and Calix JVs need to be taken into consideration, as if we are able to get into the converters market then well the sky is really the limit. If you look at the margins that converters like Posco operate on compared to what PLS operate on as a miner your mind will boggle (I'll let you do your own research here)

So in short, yes if you are taking a view that $700/t will be a long term price for our spod, and disregard everything else PLS has going on then you might be about right, but I think it would be wise not to disregard what else Ken and his team are working on....so far we only know about Posco and Calix, but who knows what else they have planned in the pipeline!

GLTAH

Pap