PLL

5.00%

21.0¢ piedmont lithium inc.

PLL presentation, page-3

First 3 Last

Share
Profile

Follow
banksy808

4,125 Posts.

362

06/04/22

12:52

Post #: 60686021
Share

Originally posted by WhatsTheTip: ↑

So have I understood this correctly,

The Abitibi hub has existing facilities that were on care and maintenance and is restarting. They PLL has signed a life of mine offtake agreement with a floor price of US$500 and ceiling price of $900 which will ensure production is profitable in all market conditions, including periods where Spod prices may be low. The offtake is the greater of 50% of production or 113kt/yr.

At the 16 minute mark there is a presentation slide noting the following:

The Abitibi hub is expected to be in production in 1H 2023 (per below), at which stage PLL will still be constructing hydroxide facilities. This will mean that PLL will either stockpile this 113kt pa, or sell it on the spot market in 2023 and probably also in 2024. While PLL has an economic interest of 37% in Sayona, it has a 100% interest the Spod received from the off-take at a price of no more than $900/t.

Assuming spod price come back down from their high's to US$3,000/t in 2023 (some HC posters wonder whether this significant fall won't happen until 2024 when some other big projects come online). PLL would be in a position to make $2,100/t on-sale profit on this 113kt of Spod (or US$237.3m of EBITDA). If its two years before they need this production capacity as feed for Hydroxide, they have two years of spod sales in what is likely to be a strong market. A significant portion of the financing needed for Hydroxide could come from Spod on-sale profits from their capped contract. If you use current US$5,000 prices for spod, then the on-sale profits are just crazy, potentially as much as US$463m over a 12 month period.

https://sayonamining.com.au/authier-project/

https://piedmontlithium.com/piedmont-lithium-outlines-2022-development-plans/

Expand

110% spot on

PLL Price at posting: 93.0¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

TNC

True North shares jump on positive activity report as Cloncurry aims for Q1 production deadline

LML

Lincoln Minerals to kick off fieldwork at Yallunda uranium project in the nuclear state, SA

QGL

Quantum Graphite snags new exploration licence in SA ahead of maiden drilling

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

WML

Woomera kicks off 2-pronged drilling at Mongolia's Bronze Fox Cu-Au play

There are more pages in this discussion • 45 more messages in this thread...

First 3 Last

Add PLL (ASX) to my watchlist

(20min delay)
Last 21.0¢		Change 0.010(5.00%)		Mkt cap ! $87.02M

Open	High	Low	Value	Volume
21.0¢	21.5¢	20.5¢	$441.5K	2.098M

Buyers (Bids)

No.	Vol.	Price($)
6	40227	21.0¢

Sellers (Offers)

Price($)	Vol.	No.
21.5¢	1038486	23

View Market Depth

No.	Vol.	Price($)
4	47709	0.210
19	279895	0.205
9	340800	0.200
12	458914	0.195
15	635261	0.190

Price($)	Vol.	No.
0.215	1038486	23
0.220	575462	17
0.225	194464	12
0.230	152832	10
0.235	283130	5

Last trade - 14.53pm 14/10/2024 (20 minute delay)

PLL (ASX) Chart

PLL presentation, page-3

True North shares jump on positive activity report as Cloncurry aims for Q1 production deadline

Lincoln Minerals to kick off fieldwork at Yallunda uranium project in the nuclear state, SA

Quantum Graphite snags new exploration licence in SA ahead of maiden drilling

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Woomera kicks off 2-pronged drilling at Mongolia's Bronze Fox Cu-Au play

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

PLL presentation, page-3

Top Stories

True North shares jump on positive activity report as Cloncurry aims for Q1 production deadline

Lincoln Minerals to kick off fieldwork at Yallunda uranium project in the nuclear state, SA

Quantum Graphite snags new exploration licence in SA ahead of maiden drilling

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Woomera kicks off 2-pronged drilling at Mongolia's Bronze Fox Cu-Au play

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News