Some numbers to chew on to arrive at a PLS...

Some numbers to chew on to arrive at a PLS valuation:
ASSUMPTIONS:
1. FY 2025
2. Production: 720ktns at SC5.2
3. SC6 price: US$1100/dmt CFR
4. AUDUSD: 0.67
5. AISC: A$605/dmt CFR
6. Corporate: A$65m
7. CTR: 30%
RESULTS:
1. Profit after tax = A$121m
2. FCF = A$213m (FCF = Profit after tax + depreciation - sustaining capital)
VALUATION:
1. JPM recommend PE multiplier = 16x. Hence PLS value = 16 x 121 = A$1.9b + cash of A$1.8b = A$3.7b
2. FCF multiplier of 10. Hence PLS value - 10 x 213 = A$2.1b + cash of A$1.8b = A$3.9b.
3. Take midpoint. PLS value = A$3.8b.
4. Current PLS value = A$9.3b compared to theoretical value - A$3.8b
5. Conclusion. PLS is significantly overvalued with a theoretical target price of A$1.30 (3.8/9.3 x A$3.10)
6. However because of its importance in the Li market, a price of A$2.00 is more reasonable
IMO only