Day to day discussions on S/P, page-2590

The only concern one should have with a falling SP is an imminent CR. KB has covered that with the latest BNP Paribus $20mAUD WC facility and the hedge facility. We will not need another CR unless something drastic happens sometime down the track. At the moment we are safe with cash coming in, finance facilities in place, production underway , a full order book with BOAs for the next 5 years , competent processing contractors etc etc. When I first saw that latest Mining Scout video of late I did sense a tired, not so confident, KB and when he said (ooh so quietly) " we should have got our first shipment away by the end of Aug 2018" I then felt a bit of concern for the first time with PLS. Shortly after we got the announcement about iron content and the SP started its downward movement. There is very little that can go wrong from here IMO as I assume the final commissioning stage will reduce the Fe content to an acceptable level. The ramp up is funded and the concentrate price falls may be significantly covered by the exchange rate advantage. The shake up in China over quality battery production is a great thing. It will force manufacturers to produce the long charge life batteries that the market is demanding, which by necessity will target the concentrate we produce. It will also make other suppliers less attractive. The current problems with brine recoveries and now export taxes out of Argentina, whilst unfortunate for those producers effected, will be a plus for PLS.  The SP turning point from here is the FID on stage 2 imo. That will cut away all the "noise". If it is funded and off take secured it will mean the news that matters to PLS is positive. We should all relax at that point. This decision will be made in a negative Li sentiment environment, so if it goes ahead we will be assured that the people who matter are confident about the Li sector and the PLS product and that makes me confident. All the other negativity around Li supply and demand will be meaningless at that point. Accordingly in this reward/risk environment I have taken on the risk up front and substantially increased my holding in PLS.