I have a few PLS shares and it's now my biggest holding (partly because CXO has halved but that's not for this thread
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Like most people I wish I had more PLS (I was not an early investor and my first buys were 80 cents to $1) and I was a bit conservative when I was accumulating having been almost wiped out in early 2020 from a poor Lithium market and capitulation by many holders.
I took heavy losses from some stocks such as Altura and a couple of others I never thought would ever make it (some didn't, some did).
I held PLS and nibbled at it from time to time without a lot of available cash).
So I didn't buy a lot at the 2020 lows (i got a few), but I did what I consider the next best thing and have held held held what I have - which is now my largest holding by far.
What I'm keen to hear about from long term holders, is what do they believe the potential SP and MC of PLS could be in 2,3,5,10 years time.
I'm of the opinion that if Lithium prices hold somewhere close to current levels (seems a decent chance), then PLS could be trading at $10/share in say 2025/26 with P1000 under our belt, 30% of POSCO plant, etc. Also a likely say 40-50 cent dividend p.a.
But then I wonder if the Calix mid stream salt project is successful and PLS expand their operations (M&A), could this do an FMG and could we see $15 or even $20 per share by say 2030??.
I've done the hard yards holding through the tough times, and I do need to take some off the table at some stage to reduce my overall risk (too much of my net worth is in the markets in mining stocks) and pay off the mortgage, but it seems a bit premature to sell just as things are getting going - I mean we've only had about 3 or so quarters of profits which are really ramping up now.
I am quite hopeful of holding all my PLS shares for some time (several years) and perhaps selling others to get some cash out in due course, and I'm interested in others thoughts about long term potential.
Obviously lithium pricing is the key and for arguments sake, I think we can assume a US$3,000/MT bear case scenario, a $6,000/MT bull case scenario and everything in between for spodumene. I dare not consider higher prices as my calculator would break, but you never know.........
To summarise, I'm calling $10/share by 2026 (P1000 in full flight) assuming spod prices remain at say US$5,000 or higher.
Any thoughts welcome.
(20min delay)