Good News & Bad News, page-452

"I don’t think that $6b MC is high at all. I expect that to be exceeded within 12 months and it to be doubling from there by 2023-24"

You copped a lot of stick for your $10 a share call, 3 years ago Frog. Given the doubling of issued shares since, that's equivalent to $5 now. You know its a boom when you call out those numbers again.

FWIW, I agree.


PLS - 25Mar21 94.5c - Now $1.30 - Up 37.57%
PLS - 26Oct20 41c - Now $1.30 - Up 317%

GXY - 25Mar21 $2.27 - Now $3.61 - Up 59%
GXY - 26Oct20 $1.35 - Now $3.61 - Up 267%

ORE - 25Mar21 $4.53 - Now $6.20 - Up 36.87%
ORE - 26Oct20 $2.59 - Now $6.20 - Up 239%

I looked at 26Oct20 because the ALO takeover was announced on 28Oct20. I suppose our share price has been helped along by it, relative to the other Oz listed producer share prices. Not by much though. A lot of our increased MC has come from the ALO takeover, the others from rising Lithium prices. I can't help but feel that our share price is underperforming relative to GXY and ORE.

Sure our MC is much higher but the IGO purchase of Greenbushes valued the entirety of same, at upwards of A$10b. They've increased some 40% since.

Now Macquarie estimate PLS production to increase 9 fold, which will be more than double Greenbushes current production. The future looks so bright everyone would be well advised to buy sunglasses.

Now we've had the POSCO JV leak and yet our share price remains unaffected ... relative to other Oz listed producers.

We were advised in the last Quarterly Report, the PLS BOD would report an evaluation of Plant 2 by the end of the Mar21 quarter. I imagine the rising Spodumene prices has caused a further re evaluation.

Profitability, rising Spod prices, plant expansions, downstream investments, Greenbushes comparisons, a share price that's yet to acknowledge any of this and I don't think a MC of A$6b is unreasonable.

Roll on next wednesday.