NOW DON'T SHARE THIS - I WANT to buy more MIN
If this goes down more to around $42 - i will average down and buy more
Why cos its simple logic - PLS 8b MC and MIN 9b MC.PLS once fully recommissioned, the plant will have a spodumene production capacity of 180,000 to 200,000 dry metric tonnes by mid-2022.
The company is aiming for the Ngungaju plant to produce 580,000 dry metric tonnes per annum when at full capacity.
Mineral Resources will be the largest lithium spodumene producer in the country once they restart Wodgina and get it up to full production. At the moment it’s on care and maintenance. They just announced they’re in the process of getting their first train back online by the third quarter of next year. They’ve built 3 lines already, which should produce about 750,000 tonnes per annum when fully operational.
They’ve also got the joint venture with Albemarle, which enables them to do downstream production as well. So we’ll see them in the hydroxide space in the future, with up to 40,000 tonnes per annum.
some more comparison
Both mining companies currently have a similar spodumene capacity. Across its Pilgan and Ngungaju plants, Pilbara Minerals’ assets add up to 536 kilotonne (kt) per annum of capacity. Meanwhile, Mineral Resources’ share of its Mt Marion and Wodgina operations equate to 535kt per year.
Furthermore, both lithium contenders have plans for future expansion. The Pilbara Minerals share price has surged on the miner’s ambition to produce 1 million tonne of spodumene annually in the future. Similarly, the company intends to reach an estimated 13kt of lithium hydroxide production capacity within 3 years.
Simultaneously, Mineral Resources will be charting its own course toward an estimated 40kt to 45kt of lithium hydroxide production over the same period.
In terms of what the market’s attributing to that value, you’re pretty much buying the entire Mineral Resources asset, including all their iron ore production, all their mining services division, plus other cash and miscellaneous assets for about the same price you’re paying just for Pilbara, which is quite an extraordinary state of affairs.
com on JP morgan - write some more silly reports, so the fools can dump MIN and I can buy more at a lower price - pretty please.
(20min delay)