Let's attempt to add some value here rather than discuss the...

Let's attempt to add some value here rather than discuss the recent pull-back in the SP. Understandably it's never pleasant to see capital erosion, however the positives are considerable if you look at the most recent announcement regarding the long-term direction of the company. This was the first time we saw reference of the company looking to not only sell 6% concentrate but vertically integrate into a carbonate / hydroxide producer using Pilgangoora concentrate as feed-stock.

Reference was also made to a third party that holds the rights to a technology that may assist in further lowering the cost associated in processing the concentrate.

"...We have also been reviewing the latest R&D work into technologies which could lower the costs for converting spodumene into lithium carbonate and lithium hydroxide to ensure future competitiveness in terms of operating costs with the big brine projects. This conversion technology hasn’t changed in over 50 years as, until now, lithium has not attracted the R&D investment required to revolutionise the conversion processes..."

We have an existing relationship with Lithium Australia and have been a party in providing them bulk samples in testing their proprietary Sileach™ process that enables the recovery of lithium from spodumene concentrate without roasting. This is significant in that the roasting stage is an energy intensive process that significantly adds to the cost to produce lithium chemicals.

Reading recent comments by Adrian Griffin, managing director for LIT,

"...There is no shortage of lithium deposits or concentrating plants in the world but there is a massive shortage of lithium carbonate and hydroxide plants and Lithium Australia is focused on filling that gap with its leading edge environmentally friendly processing technologies..."

On the 26th April, LIT released an announcement confirming  that it "...has a long-term strategy for the establishment of a lithium processing hub in Western Australia with an initial preference of Port Hedland given the proximity to infrastructure, but more importantly, proximity to WA’s lithium hotspot, Pilgangoora..."

With the existing PLS / LIT relationship and both sharing the opinion that there is a opportunity to be had in building a processing plant, It's clear that the third party mentioned above is Lithium Australia. Given their desire to both commercially implement their process as well as build a facility in Port Headland we know that much.

Returning to the comments made by Ken, "...we have commenced discussions with off-take partners regarding the opportunity for Pilbara to participate in future downstream processing ventures. We recently commissioned an independent Scoping Study by a highly regarded global engineering firm into the opportunity to construct a lithium carbonate/hydroxide plant in Port Hedland in conjunction with partners. The results of this study were very positive, and it recommended advancing to a Feasibility Study and conducting a location study. I should stress that we wouldn’t undertake this work in our own right as our focus remains firmly on Pilgangoora, but we would consider pursuing such an opportunity with the right partners and in the right structure..."

Looking forward to the DFS, I expect to see the following. A first train of either 2Mt or 3Mt throughput that will be supported by the 7 end-users that have entered into MoU with us. As Ken has confirmed, the company's first objective is to get Pilgangoora active. This would involve generating early revenue by way of selling concentrate to the seven users. This is important as in doing so the company will be de-risked and then able to concentrate on the  long-term strategy to ensure company growth.

I expect the rig to be then supplemented with a second train as discussions with third parties continue in developing a hydroxide / carbonate processing facility in Port Headland. An announcement detailing the planning of construction will be supplemented with news of PLS entering into an agreement with a company that is currently processing lithium chemicals. Given our proximity to Greenbushes and the Albemarle / Tianqi cooperative, both having experience with Pilbara rock as well as the logistical infrastructure / administration services in place it would make sense for either to become a JV partner. The Albemarle / Tianqi cooperative in ceasing sale of spodumene concentrate to instead focus on processing is similar in nature to what was announced by PLS late last week. Given that Greenbushes is pushing 300M+ it would be wise to accept some of the Pilgangoora concentrate to reduce costs as well as ensure a stable supply for the next 20 - 30+ years. Could we be seeing a possible tie-up of the three to focus on the global market?

If the above comes to pass, it's going to be one hell of a "holy sheet" moment. With Ken in China as was earlier mentioned we can only hope that moment is approaching.