Good News & Bad News, page-12788

Firstly, let me just say that I have large holdings in both companies (PLS and AKE) being diversified in location and output. I respect everyone to have their own strategy. I am just writing this for readers out there that might not understand the differences.

In terms of MC, both at current prices are undervalued. There is no arguing about that full stop. In terms of which should be higher you will find that this has changed and will change (including the margin of difference) over time. At the end of the day it doesn't really matter, what matters is at what part of the cycle you purchased into either company. I don't care which has the largest MC, I just care about the profit I am making. Recently, I have been accumulating PLS because in my opinion I think PLS had been pushed down hardest (way too low) by the market. Thank you market for the profits I already have from my recent purchases.

Both companies have great growth prospects and are at different stages in their future projects.

PLS has its core and coming online now is their fantastic altura deal of the decade. Longer term expansions, calix and POSCO

AKE has at its core Oz and Mt C (the little engine that is driving the cashflow for growth). In the next 5-12 months AKE will have Oz2 + Nahara (think POSCOish sort of) come online and producing, bringing in even great near time cash flows (built and now being commissioned). Soon after that SDV stage1 will come online and then stage 2 - all of this from brine. If all goes to plan Mt C replacement James Bay will come on line (spod) in a couple of years pushing growth further. They will then have a somewhat balance between the spod and brine worlds (but even their spod with plans to be converted directly and sold in chemical form, maybe not immediately).

Spod is king at the moment because the margins have rebalanced to focus the miner, eventually/maybe things will rebalance again and margins might be greater for the chemical producer. Hence why POSCO is important as it creates future diversification for PLS.

The main thing that I want to get across from the above (without going into any more detail than I have) is that both projects over time will have different bursts in growth and cash flow generation. MC of both will continuously go in and out of fashion as it has before.

There are advantages and disadvantages of holding one over the other. There are also advantages and disadvantages of holding both. I also hold others in the sector with different advantages and disadvantages.

All is just my opinion.