Good News & Bad News, page-9711

Hi All,

This little matrix shows us what PLS is worth depending its two driving forces in (1) SC6% price, and (2) SC production tons per annum.

• Note: Some toggles/assumptions are in the lower rows (bolded are those most important)

Current production and SC6% prices has PLS SP estimated @ $2.50 - $3.14 (E2:F2) - but this is the SP with no changes from where we are now...

Production in 6-12 months time at a 680,000dmt/pa run rate, at current SC6% prices, has PLS SP @ $4.67 - $5.89 (E10:F10)

• Note: this is without POSCO JV numbers baked in, and a low Enterprise Value (Market Cap) / EBITDA ratio of 8/1..... typically I'd have this at a 10/1 or 15/1.

Conservative Valuation Matrix (based off 8/1 EBITDA ratio and JV revenue not included)

At the end of the day when all of the below is true, we should be fairly valued between $9.00 - $15.00 at very least (E17:G17):

• Enterprise Value (Market Cap) / EBITDA ratio of 10/1
• SC6% price = $3000/dmt
• PLS production = 1,000,000dmt/pa (or more)
• PLS & POSCO JV Operational @ 43kt/pa (only baked in 18% interest, PLS will take up 30% without hesitation)

Realistic Valuation Matrix (based off 10/1 EBITDA ratio and JV revenue included @18% interest)

Hold tight, there is no denying the value coming to shareholders in the next 6 months, let alone the next few years.

Cheers - Woly