@curiouser27 I should have listened to your wisdom more...

@curiouser27 I should have listened to your wisdom more carefully.

On that note can we stop the mine is better than yours bickering of the last few days. One of the best things about AJM threads is we tend to follow managements lead. Under the radar, no fuss, but full of good information when needed.

@Affi11 there has been suggestions (yet to be confirmed) that Galaxy might be locking in spod contracts for next year at rates as high as $800-1,000/tonne. There is also suggestions that based on current Carbonate prices that PLS' pricing mechanism will be generating similar. Considering that we are probably the next source online the shortage of quality lithium is probably going to pervade all the way until when we reach production.

So let's even shave a little bit off those numbers and say spod contract prices are at $700/tonne when we reach production. Costs are $237 FOB. From PLS DFS ocean freight costs are about $20 and lets allow for some margin of error in the early years. So let's call it $300. That means margins of $400/tonne over a production profile of 219kt.

This gives us $116,800,000 AUD. Allow for other costs of say $10m and depreciation of about $15m. From that I get an NPAT of about $79,500,000. Using a 10x earning basis gives us a valuation of around $795m. Share price will depend on funding options and how much (if any) extra equity is required to be issued to fund construction.