Ann: March 2024 Quarterly Activities Report, page-69

The arguement for owning PLS is simple for me.

1. If you believe that we will need lithium for the energy transition, you will want to own a lithium producer with a tier one asset, near the bottom of the cost curve.
2. Prices are now at the bottom of the cost curve, some would argue even below. No debate here in my opinion. Market cannot be supplied at current if we are moving to an automotive industry dominated by EV's over the next 5 years.
3. Best juristiction in the world.4
4. PLS are net cash and are still profitable at what could be the bottom of pricing cycle. If prices don't move higher in the short run, that's fine plenty of cash and they are still making money. Nothing else will get built in this pricing enviornment, capital raises are dead in water (See LTR and GLN).
5. Best management in the space.
6. If prices don't move higher than $1,100 U/S at p1000 we are still on a P/E of 10
7. Cash provides balance sheet flexibility. Acquistions, growth projects etc.

I agree that PLS isn't "cheap". However, I believe the arguement is simple. If you believe we need lithium there is unlikely to be a better time to own PLS. They have shown incredible cost discipline which will provide incredible leverage if the market tightens again.

Can prices go lower? Sure. Does PLS need to worry? No. Last man standing, and first to make software margins again.