FA & General Banter, page-20456

Right, lets get back to the fundamental topic of Lithia product pricing and why it is making LTR simply irresistible.

First is thanks to @HC_Haplo on Twitter for posting the following Fastmarkets' pricing chart noting that the Hydroxide price is steady as is Spodumene, with the latter's price revised fortnightly.


So the result is a flatline this week looking at the ratio of Spod and Hydroxide with the former selling at 9.94% of the latter.



We're starting to get a good bit of data for this quarter which is important, as my belief is that LTR's offtake prices will be based on last quarter's sales. So for the current quarter the average Hydroxide price is US$49,571 and the quarters average ratio is 10.23% - so next quarters hypothetical SC6 sales would net LTR US$5,071/tonne. Sweet. Using @Anteviariel spreadsheet that sort of price would give an EPS in 2025 of AU$0.86 and a share price around AU$9 with a fair PE of 10.

However, it's not all doom and gloom!

This Morgan Stanley research note points at prices going up for the rest of 2023 noting that battery producers' inventories are low and/or down to a month or so of supply. I don't hold, but I guess a resumption of PLS's BMX auction may not be too far away. Research paper posted on Twitter by RK Equity's @lithiumionbull



Not financial advice, DYOR.