“However what is the bottom for LTM and price of lithium?” haha...

“However what is the bottom for LTM and price of lithium?”

haha the million dollar question!!!

Unfortunately none of us know, but there are some comments from PLS’s head honcho that imo are relevant:


“Pilbara Minerals boss Dale Henderson says he is not concerned a plan to triple the company’s lithium output will help glut the market and undermine pricing…..”
…”But despite downbeat market sentiment on the commodity, Mr Henderson said Pilbara Minerals is confident its ongoing expansion plans will not “move the needle” on the supply and demand balance, given the long-term projections on the need for more lithium supply.”


“Pricing of $US1000 a tonne was emerging as the market floor for global production, he said.
“What we’ve been observing and hearing from others is that looks like $US1000 per tonne is a level which is very much a swing price and is a level where quite a lot of the existing operators can no longer participate” he said.
“In which case the long run price, to enable some kind of margin and incentivisation to enter the industry, has to be above that.”


Also, wrt LTM specifically; this info is very interesting imo when trying to assess the fundamental financials of the company:





It appears to me that “the market” is largely ignoring what happens when pricing shifts and our production expands. The above hints at our potential earnings over the next 3-5 years.
Can anyone provide a reasonable case for the current share price, based on a reasonable forward projection of price and production…?


Imo
Dyor