CS commence coverage on Lith and PLS.

1. Pilbara Minerals (PLS), Target Price A$1.15/share, Outperform: Large scale, long life, hardrock spodumene operation located in tier-1 mining jurisdiction Western Australia. We like PLS for its relatively simple processing operation, and highly scalable Resource (> 40 years' life) at reasonable grade. We see a clear re-rating opportunity on achieving feasibility design parameters as it ramps-up production at its recently producing (21 June) Pilgangoora. This should see the discounts applied to the stock for completion and performance risk diminish, and provide greater investor confidence that it can deliver on its Stage 2 expansion and deliver attractive returns.