Good News & Bad News, page-45467

At the risk of you repeating the same parrot comment again … sigh … old news which the market agrees on being old news based on recent SP movement … could you explain in detail how PLS has “$1.5B in additional dilution to the EV coming shortly” and why PLS is “going to be called to cap raise to manage the $1B debt they just took out”.

When you do, please don’t fail to include connection to the following in your reasoned position:

• If the extra “$1.5B in additional dilution to EV” relates to LRS acquisition through script offering (??) … what value do you ascribe to the asset being acquired, please include intrinsic value of the resource in the ground as well as the strategic management value of being able to “sequence supply” by delaying that material otherwise entering the market when PLS can generate greater profit by keeping it away from the supply to support further price growth for spod produced from a P1000 operation in Australia.
• What effect the partnership with POSCO and ramping up of those two trains add to the EV … don’t forget to consider the 18% -> 30% equity increase in that partnership available to PLS and the partnership agreement details around funding of that equity increase arrangement.
• What effect the development of the CALIX technology (neatly nestled between P1000 and P2000 infrastructure plans on site) has to the EV … don’t forget to include potential future value of the IP for the process being licenced by PLS to other operators to allow them to meet increasing ESG/materials passport requirements for their customers.
• The loan facility not being a straight out single draw down loan but being a facility providing flexibility to draw or repay as desired by PLS management.
• The existing bank balance in cash held by PLS and potential earnings made on it (I doubt its being held in physical cash sitting under the board room table to buy site bonus timtams but otherwise slowly deflating away and not earning a return itself).

So … could you elaborate on those claims you have made?

And a quick extra question … does the LRS acquisition concern you for the position of shareholders of that company or for the value it accretes to PLS? If the concern is for shareholders of LRS, please discuss that in LRS forums, just like what happened to AJM when it was taken out by PLS strategic management processes.