ASX Today, page-36851

Real long shot. And very hypothetical but has been on my mind.

PLS disclosed approx $73million spent at the quarterly call for ‘investment purposes’ with no detail.

Lets assume they have accumulated a 4.8% stake in a company to stay under the radar.

This would mean they have a interest and targeting a company worth circa 1.5 bill.

I have run the ruler every Lithium play I am aware of on the market and there aren’t many ‘fitting’ options.

Either the listed companies are $500 mill or under; or $5bill +

There aren’t many in-between.

Assuming PLS are building a strategic stake in just one company the $73mill investment would have triggered a major shareholder notice for all the usual suspects.

So we can rule out the $500 mill or under targets.

I don’t think PLS are looking at anything $5bill +

The only other option is PMT, (about $1.5 bill) but I just don’t think it’s something PLS would purchase right now. Any acquisition would have to produce cash flow, and not be a drain for the next 5 years.

Entirely possible Liontown is in the crosshairs. Right market cap, cashflow productive and with existing offtakes sales are already taken care of. It won’t add to ‘surplus’ supply.

Now if you double the $73bill / $1.5 bill target and assume this could be a 50% play, say with Gina, you get a $3bill company. This is about what LTR was trading at for the past few months of PLS investment activity.

A but fluffy, but a maybe…