Good News & Bad News, page-46304

Hi leon3006.

PLS have just been through a search for an addition and would have assessed numerous companies before being satisfied and making their move.
They need to bed this deal down as they have a number of things on the go.
Its not wise to spread yourself too thin, especially when it is difficult accessing resources such as expertise.
Expansion to P2000 has been flagged but that is also for the future, potentially.
It makes sense because as the downstream efficiencies, Calix, start to produce at around 30% then there will be a lot less waste shipped and a higher value product exported.
That and expanding to 30% JV with Posco will use up a lot of spodumene, so there is potential for a greater capacity mine.
At this point in time I think they will keep their eyes open and would probably move only when it suited their goals.
Eg., a distressed asset like AJM was an opportune and wise choice as can be seen now.
No brainer really but some didn’t think so at the time.
Management would go through with a fine tooth comb when assessing but they are in no panic and the market realises this with them being rated, best in class.
That has come about due to their excellent management and diligent execution.
All said and done, who knows but management and they are up for a challenge.
I don’t think they want to embarrass anyone, more like others will feel embarrassed at the gaping difference between the two as PLS keeps expanding.
PLS = Best In Class…
and deservedly so, imo.

T.