Good News & Bad News, page-169

You raise some very valid points Oz but as holders of PLS what really matters is how that impacts PLS.
We are already seeing the consequence of oversupply with stage 2 being moved back 6 months and that may get extended again , we will see, and as yet there is no fixed timeline for stage 3.

As long as Spod plays a part in battery production then the issues for PLS are relatively simple , secure offtakes for all production, ensure all contracts have a minimum price that allows a comfortable margin above the long-term cost of production which in itself allows for breakeven in tougher times and then expand with the market....in the meantime, improve the plants performance, enter the conversion space and find ways of having that and any future expansion plans free carried , ideally eliminating the existing expensive debt as well...that will come with a reduction in WI, you can't have it all but you can still have a lot.

A lot of the above has already happened and in less than 6 months most of the rest should be known..at that stage we will also have a much better handle on production costs, with the plant able to produce at nameplate capacity for stage 1 and likely doing so.

Basically the growth in the Lithium requirements may prove to be slower or faster than currently expected but as long as the above applies it's really just about hanging in there and expanding with the market , which is an exercise in patience, something that unfortunately is not well understood by many participants on internet traders chatsites....

In the long run Companies are valued on their earnings and I agree we may see an extended period of relatively week performance, PLS is largely about future potential not the current growing pains...

Personally I believe the EV uptake will supprise to the upside and as you say the infrastructure costs will be huge, however there is also vast amounts of cash being added to the system on a daily basis through retirement savings plans that needs to find a home, not to mention sovereign wealth funds and Govt incentive money..a lot will be directed towards a cleaner future and new sectors with growth , not the dinosaurs of the fossil fuel age.. some of those dinosaurs will start directing their money our way as well, some already have....there is change coming ..

Cheers Whisky