Banter and general comments, page-12374

The positive for the day is that the gap closed. We're now primed should the market allow us, to head up and out of the mire.

I was interested to see what our likely MC will be when producing at nameplate in 2023. Perhaps PLS is the best "guide" company to base any estimates on.

https://www.marketscreener.com/quote/stock/PILBARA-MINERALS-LIMITED-10354122/

Sales 2022 1 238 M Net income 2022 648 M

So that gives a P/E ratio 2022 of 10.2 x.

https://1pls.irmau.com/site/PDF/c6c35c37-2224-4cdc-b2b5-f633fe696af8/JuneQuarterProductionandSalesUpdate

"FY22 annualised production now expected to be in the range of 373–377,000 dmt(~33% increase from FY21: 281,098dmt), and at the upper end of the previousguidance range of 340-380,000dmt."

Without doing any detailed analysis, as we are scheduled to produce approx 190 dmt p.a., half their output, there's little reason we shouldn't be half the MC then of PLS next year?

We are closer to port and have lower operating costs, but given Pilbara's scale, things should roughly even out cost wise.

So that puts us at around $3.3bn MC when at full tilt, even in this smacked down environment (which is unlikely to remain heading into next year).

Whispers about that the processing plant is being set up with Phase 2 expansion in mind already. Does that imply we are looking to produce 300dmt+ in 2024 or sooner?

I read earlier the Top 4 lithium companies have been hit for between 30-50% over the last 3 monthsl regardless of being an explorer, producer or inbetween. So we are in good company!

Time will fix that. Demand indicates there needs to be a doubling of Lithium production EVERY YEAR right out to 2030.

We are in pole position to take advantage once the market recovers. The shorters will retreat from the best companies first, those who are either producing or about to.