So essentially what you need to know here with respects to the SECOND and the BIGGEST auction result by PLS on the 14th Sept....... is that Sayona had already put on almost 30% or $210 million to its market cap valuation and thereby putting us just under the $ Billion Dollar Valuation .
And so ALL this near 30% gain of $210 million increase came exclusively off its low and close of 12.0 cents on 23rd to its price of 15.5 cents ONLY one day BEFORE as well as on the day of the this announcement , and obviously BEFORE this near 100% increase from the SECOND auction notice ever even became known.
And then after the announcement the SP obviously increased a further 22.5% as against PLS's 4.0 % so hence the notion and argument that something else and other more important issues outside of these more solitary and isolated pricing issues are driving Sayona's SP to higher and higher valuation cases.
So almost 60% of the gain in Sayona's Share Price had come from more than 3 weeks PRIOR to the 100% increase in lithium auction prices achieved by PLS from that announcement on 14th September or only only 3 days ago
So it seriously BEG's the question then that if 60% of Sayona's gain in its overall approximate 52% gain has come prior to the ' Doubling ' in PLS's auction price.....what else apart from the close of the NAL acquisition transaction on the 30th August and the subsequent announcement by Sayona of their ' Potential increase to the NAL lithium resource ' could have possibly valuation .have resulted in that EXTRA 22.5% increase in Sayona's SP compared to PLS's only 4.0% increase.
So the answer becomes obviously clearer when you look at it in this light that the approximate 52% increase in Sayona's Market Valuation has obviously in the most part come from the market certainty surrounding the smooth settlement and closing of the NAL acquisition together with its statement that its expects an increase in the already LARGE resource based it has acquired.
So maybe 4 % or less is a direct result of the PLS auction result. And that is why I wrote the last post and also this one . It is that investors and potential investors need to look at everything. And yes if it increases again at the next auction then perhaps it will add an incremental amount more .......but what if it falls back somewhat. So you need to know where the gains have more likely come from else you may make a mistake and put a foot wrong on your next entry based solely on your PLS auctions expectations.
I hope that this is clear and definitely want Split to know that I am not throwing him under the bus here. I just feel that it is important to highlight the other realities because these are the ones which will not only see the elevation of our our SP at new levels and new valuations , but also these other reasons underpin the hows and why's we should and can HOLD those valuation levels.
And so I would hate to see that our valuation is ONLY supported by the mere fact that PLS may or may not have got lucky with its second auction prices and that's all we've got to hang our hat on. Obviously pricing is very important over the longer haul - but 2 price points don't necessarily make a trend when you look at how the PLS SP , the ETF , or anyone else has responded.
So I like to think we have much much more going on that to paint this sort of picture over the last 6 or 7 weeks or even more......
(20min delay)