Hey everyone,Just found a review of PLS on Seeking Alpha. I'll...

Hey everyone,

Just found a review of PLS on Seeking Alpha.

I'll try posting the link: https://seek***alph*.com/article/4522714-2022-bear-market-bargains-series-pilbara-minerals
Here's the summary:

Valuation

Pilbara Minerals current market cap is A$6.86b (US$4.97b) with forecast zero net debt in 2022. As of March 31, 2022, cash was at A$284.9m (inclusive of $75.2m of irrevocable bank letters of credit for shipments).

Forecast 2023 PE is 4.86 and 2023 dividend yield is 4.13%. Forecast 2023 net profit margin is 52%.

Analyst's consensus is "outperform" with a consensus price target of A$3.19 representing 36% upside.

Based "only" on the Pilgangoora Operation, our price target for end 2025 (assumes 1mtpa spodumene production at OpEx US$330/t) is:

• Bear case (assumes spodumene selling at US$1,000/t) - A$1.88 (18% downside).
• Base case (assumes spodumene selling at US$1,500/t) - A$3.36 (46% upside).
• Bull case (assumes spodumene selling at US$3,000/t) - A$7.81 (3.4x upside).
• Super Bull case (assumes spodumene selling at US$4,000/t) - A$10.78 (4.7x upside).

Significant further upside if production volumes grew beyond 1mtpa spodumene and potentially from the POSCO or Calix JVs. Given the market deficits for lithium expected this decade, both the above "bull" and "super bull" cases are well worth considering.

Pilbara Minerals financials and forecast financials