Ann: September Quarter Production and Sales Update, page-28

PLS seems to be going full bore ahead of tropical cyclone season (from Nov 1 to April 30 [ref]), with shipments above the higher level of guidance (440,000-490,000dmt) issued just a fortnight before the quarter ended[September 16, 2021 Presentation].
And cash register going ‘ka-ching’ with cash increased from $115.7M at EOFY21 to $137.3M in three months.
(and about US$18M due from the second BMX auction soon?)

Are they setting up for a (little?) cap raise in early November ?
-That would be a reason for potential investors in such a potential raise to try to depress the price?

KEY POINTS​

• September quarter production of 85,759 dry metric tonnes (dmt) of spodumene concentrate (June Quarter: 77,162 dmt).​

• Spodumene concentrate shipments of 91,549 dmt (June Quarter: 95,972 dmt), exceeding prior guidance of 77,000-90,000 dmt.​

• Quarter-end cash balance of $137.3M (June Quarter: 115.7M), inclusive of $36.2M of irrevocable bank letters of credit for shipments completed up to September 30, 2021.​

• Pilgan Plant Improvement Project on track, with commissioning now underway.​

• POSCO Downstream JV negotiations well progressed.…..….​

​

….. Pilbara Minerals and POSCO have continued to pursue the DSJV opportunity and are now well advanced in the progress of detailed documents. The formal documents are expected to be put to the PLS Board for a final investment decision towards the end of October. Should the DSJV be approved by the PLS Board, an incorporated joint venture will be established in South Korea between POSCO and PLS for the development of a jointly owned lithium hydroxide production plant in Gwangyang, South Korea.​

It is anticipated that commissioning of the proposed DSJV facilities would occur from the June quarter, 2023.​

The final terms of the joint venture remain subject to further discussions which are expected to be largely consistent with that originally announced in the ASX on 27th August 2019….”​

​

Here’s that announcement from more than three years ago …
[27/08/2019 PILBARA MINERALS EXECUTES BINDING TERM SHEET FOR LITHIUM CHEMICALS DOWNSTREAM JOINT VENTURE WITH POSCO]
And an excerpt:

“Pilbara Minerals will have the opportunity to make a staged 30% investment into the JV, by initially subscribing (at an “at-cost” valuation) for a 21% interest in the JV, with an option (at its election) to increase its interest by subscribing for a further 9% of the shares in the JV at any time up to six months after the commencement of commercial production at the chemical conversion plant.

Pilbara Mineral’s equity investment in the JV will be based on the new JV Company having a gearing ratio of 50:50, with external debt expected to be provided directly to the JV Company.
The final estimated capital investment amount will be based upon an initial business plan and budget to be approved by both parties prior to formation of the JV.

The subscription price payable on exercise of the option for additional shares in the JV Company (to take Pilbara Mineral’s participation to 30%) is based on the initial investment cost. This structure therefore provides Pilbara Minerals with added flexibility to stage its investment over time and reduces its exposure to its initial participating interest during the construction phase of the Conversion Facility..”

There’s so much more in that notice including it being tied up with Pilganoora  Stage 2 Development.
I would appreciate others’ thoughts.

Cheers.