Ann: Goulamina - Progressing a World Class Lithium Project, page-203

@Mikoffski ..."Isn't PLS valued @ ~$6.2B for fy21 production @ 281,440 dmt"

PLS is obviously way overvalued for current production, so the market must have valued it for current production plus future production.

We don't have current production, so our valuation is all about future production, partly the initial 40% 0f 450k/a, and partly whatever upgrade in the updated DFS (plus gold obviously). Because our Mcap is only $600m there is not much current 'value' attributed to our future production.

Take a different company Liontown, their current valuation takes into account future production for an underground lithium mine. I think most of us would argue we are way undervalued compared to them (currently $3B with zero current production ).

However IMHO it is the great undervaluation that is the greatest risk/reward opportunity here. We know that over time when the companies are producing the Mcap will come down to earnings, resources and future possibilities.
If LLL is producing earnings 30% of PLS and LTR with all companies having a large available future resource and similar cost structures, then we would be around 30% of the Mcap of those companies. As we are well below them now, then obviously (to me) the greatest opportunity is here.

Both PLS and LTR have to raise a lot of cash to get to their future 1.05mt/a for PLS and ??? production for LTR, while we only have to raise a minor amount for the first ~180k t/a and a bit more ($50-$80m) for whatever the new DFS states (say 300kt/a as per @newbieguy forecast). At 300k/a we will be about 30% of PLS future earnings from 1.05mt/a.

As we go into the future there will be all sorts of changes to plans and production profiles which will affect Mcaps all over the place. We have the greatest potential upside IMHO, it's why I still hold all my 'traders', no reason whatsoever to sell any of them.