Beware of the Gaps at 3.3c and 1.4c!, page-288

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bruham

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20/04/24

12:42

Post #: 73437405
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Originally posted by stanislar: ↑

What a load of c**p

It's a non-core asset that they're selling in a favourable spike up in gold stocks. Well done on that. They are adding cash to the Balance Sheet to assist in riding the cycle trough. Sensible.

Lithium is a cyclical market! The current pricing environment will contribute to severely constricting supply coming online in the next 2-3 years. So, as a commodity driven by the supply and demand balance, the Li price will rise and it will rise in advance of this being obvious (markets discount the future). When exactly? Who knows. However, when that happens SYA SHOULD have a relatively robust balance sheet and it will have high leverage to Li price increases, given its cost profile. It can and should move very quickly to the upside. At which point, the additional potential of the carbonate plant will be factored in by markets.

They have over $680m of Plant Property and Equipment assets on the Balance Sheet. How much to replace those PPE assets after the last 2 years of higher inflation??? Would take years and a higher price I would guess. That is without all the resource development they have done.

Market Cap currently $340m and net cash probably somewhere between $115 and $130m (incl. gold stock sale). If they can retain this BS strength by increasing recoveries and delivering higher EBITDA, plus tight cost control, then they are well positioned for the next up-cycle.

All the rest is noise. All Li stocks bar those like PLS at the bottom of the cost-curve have been smashed. I'd rather be in a producer, with a reasonably strong balance sheet, in a safe jurisdiction, close to end-markets than be a developed trying to raise half a billion dollars or more to get to production 3 years down the line.

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The sale of EV's in Germany has fallen by 29%.
There are not enough charging stations for one, too expensive is another.

The main reason they are too expensive is due to the government withdrawing
handouts to people who want someone (anyone), to pay for their lifestyle purchases.

The same goes for these windfarms and solar panels, people are only interest if governments
put their hand into the tax payer's pockets for them.

Without subsidies these thing lose money.
Take away the government subsidy and no one is interested.

In an advert I saw the other day, NSW government will pay you $4,500 plus to have solar panels on your roof.
Lithium is not guaranteed to be a success.

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SYA Price at posting: 3.3¢ Sentiment: None Disclosure: Held
2 Upvote

0 Great analysis

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