The best thing about the GLX Digital Sales platform, is that the recent sale of SC5.5%@US$1,250pt gives PLS leverage to renegotiate their contract pricing. As Ken said in the Conference Call, sales price renegotiation is allowed under the contract in circumstances such PLS is experiencing now ... and the BMX sales gives PLS the ammunition to do so.
As Ken also said, the last time Spod price was over US$1,000pt, the price of Carbonate and Hydroxide was over US$25,000pt. The current Lithium boom is especially about Spodumene.
The share price of Tianqi closed up 10% at the autoclose on both thursday and friday. This morning it almost touched it ... after 15 minutes of trade! The Lithium Boom Phase 3 is white hot. The booming share prices of GXY and ORE seem extraordinary, as its PLS whose enterprise value has exploded moreso. Tianqi's share price has exploded courtesy of its Greenbushes holding IMHO. Their other assets are a share of SQM (which has performed ordinarily) and Stage 2 converter plant.
The Tianqi share price tapered off to finish 1% down at the lunchbreak. Its amazing how much these Chinese stocks can fluctuate so quickly. No wonder the Chinese have the 10% autoclose and restrict shorting. Ganfeng was up 6% early to set yet another ATH, only to be down 6% at lunch.
At the close, Tianqi was up (again) by 3.13% and Ganfeng down 3.21%.
I just reckon that the theoretical value of Greenbushes has exploded with current Spod prices the way they are. I would expect more upside to the IGO share price soon. If Ken succeeds in renegotiating contract prices (which he should), then the PLS share price should move up strongly accordingly, on that news.
While the Lithium sector maintains the buzz, so should the PLS share price. Sector hype says onwards and upwards. I'm expecting the share price to go over $2.00 soon. I was a long term holder but now a trader of this stock. I'm still a long term believer.
PLS Price at posting:
$1.91 Sentiment: None Disclosure: Held
(20min delay)