I agree. If we look at FMG EPS over many years, the erratic...

I agree. If we look at FMG EPS over many years, the erratic nature of the returns lends itself to having a lower PE ratio. Li is a new sector now. Not just glass, grease and ceramics. The dynamics are more complex than base metals and the sector will take years to stabilise. I think we can all agree that the new norm for prices will be much higher.

For the foreseeable future, the Lithium sector should justify a much higher PE ratio IMO. I think the investment community is just starting to cotton on. Over the next few years we should see a rerate to a more sensible PE ratio for stocks like PLS.