Corp updated needed SYA/PLL, page-34

First 34 Last

Share
Profile

Follow
dawgfather

9,847 Posts.

5227

26/06/24

13:11

Post #: 74494260
Share

Originally posted by WhatsTheTip: ↑

My preference is also for 100% control but sometimes events don't unfold that way. The biggest and arguably the best lithium operation around is Greenbushes and its a multi-way JV. Piedmont's priority has been around controlling the ore. They didn't need shareholdings in SYA or Atlantic to do that so the shareholdings were sold. Over time some of the JV holdings may disappear if the offtake contract is strong enough.

Supply is meeting demand. IMO there is no serious over-supply. If there was serious over-supply then the various auctions of additional material being undertaken would not be generating US$1,000+ bids. If there was serious over-supply it would be pushing down prices to the point where many were losing money, not just a few. The last cycle showed that point was ~US$400/t so adding a bit for inflation US$500/t or US$600/t for SC6 is indicative of serious over supply. Prices are nearly double that. If there was serious over supply, production of SC5.2 type volumes would disappear because the hydroxide converters would say if you want me to buy your product, ship me SC6 because that's the easiest product for me to work with. Producers like MinRes working with high Iron deposits would be struggling to sell their product because hydroxide converters prefer low iron Spod.

There might be mild over supply but that in itself is interesting in itself given the need to absorb supply from Sigma, NAL, Arcadia, Core (although that's stopping soon), PLS expansions and other expansions, and Mt Holland (who are shipping concentrate). Past estimates have put annual demand growth at 200-300 LCE / year. KV operating at 80% recovery and 3Mt throughput is 83kt LCE/yr. KV is perhaps 3-5 months world demand growth. Goulamina is less than that as a 2.4Mt operation. If world demand is growing at 200-300ktpa then a resolution of tight supply may be far earlier than some of the commentary circulating. If indeed that is the case keeping NAL running if getting closer to cash break-even would be sensible.

Piedmont and Atlantic are almost uniquely positioned within the lithium space as one of the few companies looking to place a meaningful package of yet to start up ore into the market place. This will have provided them far better visibility of future demand than joe public will ever see.

Expand

Personally I think there are far better ways to get an investment exposure to lithium, than through PLL. If NAL goes into C&M (which it should be already IMO), what happens to PLL? If someone thinks A11/Ewoyaa is a good lithium mine - why wouldn't they just just invest in A11.

The other thing that's concerning to me is the BOD. It's a bunch of McKinsey consultants and Wall Street bankers.

PLL Price at posting: 13.5¢ Sentiment: None Disclosure: Not Held
3 Upvote

0 Great analysis

Reply

Top Stories

GHY

Gold Hydrogen reports "world leading helium purities" at Ramsay Project

BM8

Battery Age Minerals gets set to capitalise on critical mineral demand

DY6

DY6 shows strong levels of heavy rare earths from metallurgical sampling in Malawi

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

JBY

James Bay latest lithium player to pivot to other metals amidst lithium slump

There are more pages in this discussion • 3 more messages in this thread...

First 34 Last

Add PLL (ASX) to my watchlist

(20min delay)
Last 19.0¢		Change -0.015(7.32%)		Mkt cap ! $84.94M

Open	High	Low	Value	Volume
19.0¢	19.0¢	19.0¢	$177.0K	931.6K

Buyers (Bids)

No.	Vol.	Price($)
16	512851	18.5¢

Sellers (Offers)

Price($)	Vol.	No.
19.0¢	194213	14

View Market Depth

No.	Vol.	Price($)
16	500553	0.185
23	895293	0.180
6	474008	0.175
11	495523	0.170
6	387108	0.165

Price($)	Vol.	No.
0.190	174774	11
0.195	528772	8
0.200	392487	4
0.205	305199	9
0.210	1242025	13

Last trade - 10.06am 17/10/2024 (20 minute delay)

PLL (ASX) Chart

Corp updated needed SYA/PLL, page-34

Gold Hydrogen reports "world leading helium purities" at Ramsay Project

Battery Age Minerals gets set to capitalise on critical mineral demand

DY6 shows strong levels of heavy rare earths from metallurgical sampling in Malawi

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

James Bay latest lithium player to pivot to other metals amidst lithium slump

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Corp updated needed SYA/PLL, page-34

Top Stories

Gold Hydrogen reports "world leading helium purities" at Ramsay Project

Battery Age Minerals gets set to capitalise on critical mineral demand

DY6 shows strong levels of heavy rare earths from metallurgical sampling in Malawi

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

James Bay latest lithium player to pivot to other metals amidst lithium slump

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News