The question is if lithium price is not getting back to its volatile days to reach those incredible heights, how is one supposed to imagine that PLS could scale back to its all time highs valuation again.
Yes, it can increase its earnings via production capacity expansion but at a reduced margin compared to what was achieved previously, the earnings growth won't be comparable.
When gold price dropped, not even by 80%, gold majors (producers) suffered large correction but gold stock investors would never hope for their stock price to go higher without the gold price moving higher...in fact we saw gold stocks not making as much upward ground as gold itself.
But lithium hodlers won't acknowledge that in the absence of a longer term lithium price recovery that is material and sustainable, it would be difficult for their stocks to recover back to its previous peak.
LS — TradingView
