Good News & Bad News, page-35869

I only hold PLS, but just to explain my interest in Mineral Resources, I feel we should try to learn from the experiences of other companies. I am not a fan of Ellison who believes that if you can borrow money at 8 or 9% when you can make 20% on it is the way to go. I note they have just borrowed one billion dollars from the US at 8.5%. I roughly calculate that puts them in net debt of around $1.7 billion. I have a belief that borrowing to buy shares is a no-no and companies should also avoid debt.

This is a good read for those still contemplating downstreaming PLS
https://www.msn.com/en-au/money/markets/minres-wants-control-of-the-rock-as-it-launches-lithium-expansion-plans/ar-AA1k1Brs?ocid=msedgdhp&pc=U531&cvid=a96c8bef1158456faaa04cd2c847a264&ei=47
At the end:Ellison yesterday reiterated his call that operating in China was too expensive for foreign companies, saying MinRes was getting better margins toll treating at under-utilised plants over there than owning its own downstream.

I recall Pilbara Minerals sent 15,000 tonnes of spodume for conversion to hydroxide early this year under a tolling agreement but we still haven’t been advised of the result. I can only assume the result was not good.
https://themarketherald.com.au/pilbara-minerals-asxpls-sells-15000-tonnes-of-spodumene-using-lithium-hydroxide-tolling-2023-02-20/

Cantankerous James