Ann: Updated Scoping Study Improves Project Economics, page-6

Article in a German publication about PLL...........

Goldsieten Article

With Google Translation.............
Piedmont Lithium Ltd .: Update
19.09.2018   | Hannes Huster
As briefly mentioned, Piedmont Lithium was able to publish the new scoping study last week, in which the additional products feldspar, quartz and mica were included. Yesterday I stopped at the company.

It has worked very conservatively in the study and calculated that you can sell only 30% of the existing additional products. Actually, one expects internally that one can sell the complete material in the USA, but one wanted to show consciously conservative.

The study itself has confirmed the project as one of the most solid in the business. The NPV is now at 888 million USD, which is about 1.25 billion AUD! The IRR after tax (!), Ie the internal rate of return, is 46%. This means that the initial investment will be recorded in profits in just over 2 years.

Imagine, you buy a tenement for 1 million euros and then each year take 460,000 euros in rent after tax. Within 2 years, the rental income would be 920,000 euros and within 25 months you would have paid the house through the rental income. Nothing else says the IRR of 46%.

The CAPEX is only $ 109 million for the first step. This is a bargain compared to almost all other lithium projects. The further expansion should be based on the cash flow.

Yesterday a new presentation was published: Link .


Assessment :

The lithium market has cooled significantly due to several factors. For one thing, there was too much speculation in the sector. On the other hand, SQM has caused uncertainty with its announcements at the beginning of the year to significantly expand production capacity.

But it is now becoming clear that SQM can by no means keep up with the initial expansion. This was last admitted at an investor conference.

In my opinion, we are now in a bottoming phase in the lithium sector and the next wave up will push the top companies in the industry to new heights. For this I count Piedmont Lithium.

The company can produce in the US, the scoping study looks extremely robust and the time-line is very clear. Currently, the approval process is already under way and in no US state is this as clear and swiftly regulated as in North Carolina.

Piedmont has hired the best companies for this process and they will get everything moving. You do not have to deal with governments like in Argentina or Chile, but follow the clear laws in the US.

The company is already in talks with acceptance partners for the lithium, but also for the additional products. By the end of 2019, the production decision should fall, then the construction can begin:



Conclusion :

The big producers have found the ground and are already rising again slightly. The next wave will capture the well-positioned development companies, and I'm sure Piedmont will rise to new heights. Whether 0.14 AUD or 0.13 AUD will be the low, then no longer matters. © Hannes Huster Source: Extract from the stock market letter " Der Goldreport " Mandatory disclosures pursuant to section 34b WpHG and FinAnV