@finnigan86
Thanks for posting the Insto analysis. Their stated Target Price of $1.50 this year is always a conservative estimate.
It was interesting where they said they didn't think the POSCO JV would eventuate for 10 years. However, now that it is, they expect Plant expansions to occur.
CapEx of A$935m (USD720m) is up there. Our 30% comes to A$280m. The original plan included an A$80 convertible note issue to POSCO and an A$80m loan from the JV. The balance of our CapEx would tap us of all our cash and available debt financing ... which of course won't happen. We had plans to start at 21% with an option to increase but I reckon we'll look to expand debt financing.
Financing Plant expansions is the next question. Would we consider revisiting the partnering process? A kindly financier may look well upon our future profitability ... but after the last couple of years, why take on undo risk?
The Insto noted future PLS profitability:
Revenue
2021 - 166.5
2022 - 295.8
2023 - 456.2
EBITDA
2021 - 47.1
2022 - 151.7
2023 - 192.5
EBIT
2021 - 19.6
2022 - 124.3
2023 - 154.7
NPAT
2021 - 5.1
2022 - 115.2
2023 - 104.3
Gross Cashflow
2021 - 32.6
2022 - 142.7
2023 - 142.1
How about a Ganfeng P/E (currently 132) attached to one of those NPATs?
Speaking of which both Ganfeng and Tianqi were up 10% yesterday and CATL 9%. This fed into LIT ETF up 3.19% and the big 3 up strongly too.Looks good for today in both macro and micro terms.
On downstream, I found this on another forum:
I'd heard LiOH was unstable and did not travel well but this note from a Canadian miner explains why.
https://www.edisongr"Note however that lithium hydroxide (like sodium hydroxide, or caustic soda) is highly hydrophilic and would inevitably take up humidity on an ocean voyage, rendering it unsuitable to be exported to Germany in this form as it would require an additional c US$1,200/t in costs to reconvert it back into battery-grade LiOH upon arrival"
oup.com/publication/processing-hub-for-european-lithium-supply/28543/
Good News & Bad News, page-486
Add PLS (ASX) to my watchlist
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Last
$4.01 |
Change
0.030(0.75%) |
Mkt cap ! $12.06B | |||
| Open | High | Low | Value | Volume |
| $3.98 | $4.02 | $3.94 | $69.61M | 17.44M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 15 | 384127 | $4.00 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $4.01 | 158548 | 7 |
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| Last trade - 16.10pm 16/05/2024 (20 minute delay) ? |
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Last
$4.01 |
Change
0.030 ( 0.36 %) |
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| Open | High | Low | Volume | ||
| $3.99 | $4.02 | $3.94 | 4868697 | ||
| Last updated 15.59pm 16/05/2024 ? | |||||
| PLS (ASX) Chart |