I think people have to remember that there are multiple...

I think people have to remember that there are multiple institutions that have bots working the SP. Some may be looking to sell, however most will be looking to buy. The coverage that PLS has had on the website ASX insights shows the degree that institutions are involved and most would benefit by taking a look at it. Why would you employ such tactics if you are not keen to take a position? Simple. They are looking to clean up whilst screwing with the little guys. The institutions have left it late after discrediting the lithium boom foe so long and are now playing an aggressive game of catch up.

This snap shot was just taken


This one was taken several days ago



Institutions would be following a similar pattern, selling to themselves to push the SP down and then leaving little if any on the asks so that should the SP recover they will not lose to many shares.

For those still struggling to understand the value of what we have, I've copied an earlier post of mine

Nemaska Lithium Whabouchi on the 4th April released an updated feasibility study for their Whabouchi Mine in Canada. Unlike our Pilgangoora that will be an open cut mine, Whabouchi encompasses a combined open pit (20Mt @ 1.53% Li2O) and underground mine plan (7Mt @ 1.28% Li2O). From a total 27Mt resource Nemaska Lithium Whabouchi Updated Feasibility Study Shows a Pre-Tax NPV at 8% Discount Rate of $1.9 B (After-Tax $1.16 B) and a Pre-Tax IRR of 37.7% (After-Tax 30.3%). They are assuming a 1Mt throughput per annum.

Keep in mind that the following are taken from a resource of 27Mt as compared to the PLS Pilgangoora reserve of 29.5Mt @ 1.31% Li2O. Their costs of Spodumene Concentrate are significantly lower at US$145 compared to ours of US$205 and their average strip ratio of 2.2 to 1 is significantly better than ours of 3.47:1 as well. Having said that though, look at the following assumptions and measures from their study.



OMG! Check out the prices they are assuming for Lithium Hydroxide! Given that the DFS total resource will be significantly higher than what was quoted in the PFS, you can only assume the true value of Pilgangoora. Furthermore, assume that we eventually do reach that 100Mt resource... Wow!

I also like the following quote

"...The report (Roskill Consulting Group) showed growth in demand for battery grade lithium hydroxide is forecasted to outpace all other lithium compounds over the next 10 years showing a 15.5% CARG (compound annual rate of growth) from 2015 to 2025. This increase in demand is expected to be reflected in the term contract selling price of battery grade lithium hydroxide which, according to Roskill, is expected to increase from (US$/t CIF) $8,640 in 2015 to $13,210 in 2025 representing a 52% increase in term sales price..."

So for a 27Mt operation with a roughly similar grade they have a NPV of $1.9B. PLS management have an resource target of 150Mt. That's more than 5 times the size of Nemaska.