"the manin issue now is that PLS is much much larger...looking to expand to 1million production a wow amount, they are what seems a stable producer, some might think whey be in CXO with a better upsdie to PLS, those dividends re PLS will improve alot on the pitance of resent times".
I don't quite know what you mean by the "pittance of recent times".
PLS product came to market just in time for the Lithium enema years. They survived, just, optimised the plant by making necessary mods, picked up a cheap asset in the Altura plant, modified and improved that plant with the intellectual property they gained from their own tribulations and tactically played a great game in bringing it back on line just as the supply/demand dynamics turned in favor of the miners. The BMX platform helped show how manipulated the SC price had been.
Only in the last year have they been able to put cash in bank, self fund expansion and pay tax which has enabled them to pay a modest fully franked dividend. February 2023 was their first tax payment so they were unable to pay a FF dividend before that.
Personally, I had concerns about CXO a while back, sold out and reallocated all my Lithium sector holdings to PLS. Bugger diversification for diversifications sake. There will always be an argument for catch up by new producers and possibly less growth by staying in a now established reliable producer. For me, I'm happy to stay predominately in PLS. The management are killing it, they are a cash cow, they are going downstream into the chemical business, first with Posco and soon to be another, somewhere. They also have some very exciting projects like the midstream product JV with Calix and further ESG improvements. All self funded by cash flow apart from a couple of very small loans on good terms. One in particular from Australian Government Agencies.
This is a big setback for CXO, IMO. Not being up to nameplate until sometime in, maybe, 2024-25 is a huge hurdle, especially when all the mining/pit issues are on top of that.
It's OK everyone. I have a flack jacket on. This is all IMO and what do I know.
Expand
