Gov already does that. They gave PLS $15 million for the Calix mid stream which may or may not work. You ever tried stopping something midstream? Usually ends in tears.
Regardless, I very much doubt his point was to out subsidise the Chinese. It was about price floors.
I was asked to comment on Calix this week and I avoided it because I don't have confidence in it. It may well work out, but what does it matter if it doesn't? WA gov is paying for it.
I really really hate to agree with stock head, but when you clear the air, PLS is the only Aus producer that is not in or near the banker's naughty room (obviously excepting Greenbushes who I think we can all agree is in a different league). There is no benefit right now in picking the best of the juniors. There is similar value regardless of likelyhood. So why risk?
I've seen people wonder, why am I not as harsh on PLS as I am on LTR? Fair question. Simple answer is that I do not see PLS pulling so many different accounting levers and pushing so much into a self declared transitional year of FY26.
PLS has been through that all. What's what is known and I've seen the plant improvements - including when it went offline not long after commisioning.
As someone I consider wise likes to say, a plant can be fixed, a deposit cannot.
PLS fixed their plant and have state of the art systems for ore sorting and magnetic separation. PLS have also confirmed the viability of their deposit this past week. Simple open pit, low cost, good grade.
The only time you ever go underground is when you cannot go open pit. Be it that you can't get native title approval or the deposit is too deep and vertical.
PLS is fortunate to have such a massive deposit available to mine in the cheapest possible manner. Not only that, but PLS have a stack of cash to see them through.
I have confidence in what PLS is going to cost to mine and process. I also know that PLS don't need to dilute to survive. I cannot say the same about peers.
For peers that like to claim they'll run 1.3% or 1.4% LOM at 6% recoveries, I say, search "SEC Greenbushes" and see for yourself those claims are BS.
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