MIN $4Billion PLS Takeover value?

With all the talk of MIN takeovers this week I recalled an article in the Australian that stated “Mineral Resources was aiming to collect up to 700 million from the sale of its stake in the new Mount Marion lithium mine”

So is it logical to extrapolate that if they want $700m for their 43% share of 60mt tonnes, PLS’s 100% of 150mt (Exp target for the current drill campaign) would be worth approx $4 billion?

Or

Is the deposit worth nothing should Spodumene dip to $200 a tonne as some down rampers have suggested this week.

Or

Alternatively is it worth $7 Billion should the throughput increase to 8mtpa plant @ $1000 tonne 4 or 5 years down the track. (Please note all figures are for illustrative purposes only, don’t quote me on anything)

OK, they are some extreme examples (like half of this week’s postings) and the truth is probable an EBIT multiple of the DFS or PFS. However, what we do know is that the fundamentals have only gotten stronger this week, not that you would know with all the white noise on this forum. There is a reason there was 3.7 million shorts on Wednesday alone. (nearly $2m dollar’s worth) People with deep pockets are very, very interested in our project!

In saying that, I acknowledge it’s not healthy to believe in fairy tales either. I appreciate the posters and mods that point out that this is still a spec stock with plenty of risk that should still be treated with caution. However like most long term holders I feel the risk/return trade-off is worth it.

Is it a co-incidence that the forum has been flooded by non-holders, down rampers, day traders and shorters this week……. No, your stock is hot property that every man and his dog wants it so don’t let it go cheap.

So what does this Friday night rambling mean ……… Stick to your initial investment plan, ignore the white noise (Whether that be excessive ramping or down ramping) focus on the fundamentals and try not to let the short term share gyrations get you down.

I look forward to another week of chaos and suspensions on the PLS forum