elpha is a very in depth poster and i really like alot of the work he does. Yes surprising PSC doesn't flag because i think for peer comparison PSC and AVZ are actually fairly decent comparisons, MLL too.
Whereas LTR and PLL are likely to yield higher valuation based on location and few other factors, MLL, PSC, AVZ similar in juridisction and management haven't been favourable to all S/H's though i think PSC is on the right path under Sam and S/P will reflect that eventually. Then the praises are sung.
regardless, the fact PSC is omitted not only from posters on HC but also on many presentation from lithium peers it again validates my opinion that PSC's significant discount valuation to peers is simply because people/investors/companies aren't aware. There might be a few holders who selectively omit PSC, but i don't think that's the case. If it presented a great case as being undervalued surely they;d invest here? That's exactly what i did anyways.
Market will eventually catch-up in its own time, otherwise a material announcement can change the tune in a heartbeat. like when Tesla signed offtake with PLL.
Anyways not too much to reflect on. PSC still has similar or better economics than LTR, AVZ, MLL and trades at a fraction. They have no offtakes or finance deals. PSC has offtakes for 70% and 100% of full nameplate spodumene and petalite and some prelim finance kick-ins pending FID.
IMO PSC will target 50-60m USD start-up capex for a stage 1 production rolling through stage 2-3 using FCF and leveraging existing operations. It's a hard market to get finance but PSC would on paper have to look more likely to suceed, given it's seeking the lowest overall capex for full production and with offtakes already signed.
Throw in U1 doing due diligence for takeover/buyout etc etc not surprising the shareprice isn't going ballistic north, i'm sure there's unofficial work to keep PSC under wraps what PSC needs to do is press on. Which they have via pilot plant. IMO they will get the capex the need next year and the pilot plant goes a long way to omit risk for financiers. When you can hand people raw product on low scale commercial quantity (not lab scale) it suggests you know what you're doing. Then it's just a matter of agreeing on finance terms given offtakes will already be 100% secured for a stage 1 production profile.
S/P might not be favouring us, and those who are whinging at lacklustre movement can sell, wasn't whinging on the 6c to 16c run. only when it pulls back 15-20%.
technically needs to hold 13c otherwise weekly looks to move to 10c.
That said, it's a daily low on stochastics so think we may bounce.
whether you're a long looking to enter/increase exposure or a trader, it's fairly easy work here TBH. look for the cross of stochastics after a oversold. MACD confirms strength.
What we have currently is we're about to enter the oversold zone, depending on supply i'm expecting either us to hold at 12-13c, or we could see an extended period in oversold which IMO would send it to 10c.
The EMA's are starting to set themselves up nicely if there is another run to 16c or so.
i.e. need red above orange above light blue above dark blue. If they start to cross will only be the second 3rd time in 4years.
EMA history below.
weekly EMA's also converging so it's poised T/A wise, just need some volume and news to move the dial and the traders should push the price.
SF2TH
PSC Price at posting:
13.0¢ Sentiment: None Disclosure: Held
