Hi anatol I think it's pretty clear that PLS wants to position itself in the regulated markets of North America and Europe in advance of the mass adoption for EVs in NA in particular. It also provides them with increased optionality for growth which they also clearly state in the presentation. It also confirms an optimistic view in markets medium term and solidifies their expectation that lithium will remain dominant in electrification.
In relation to future industry consolidation, you have made some valid points and perhaps PLS see this step as having somewhat of a defensive aspect to itself being a target. But I doubt they are very concerned about being bought out themselves. This acquisition plays to their strengths in hard rock mining and adds NA and Europe markets while leaving them with optionality in WA. I like it as a strategy even though I do not hold. Of course, as I said earlier the big plus for me is the lowering of future spodumene supply expectations.
regards DF
LTR Price at posting:
79.8¢ Sentiment: Buy Disclosure: Held
(20min delay)