PLS (ASX) PLS chart

Originally posted by nathanwoly: ↑

Charts Review
Weekly timeframe
Looks promising (except the gap @$4.50)... i reckon that gets filled pretty soon... there are some red-hot TA guys here that could give a better view on that im sure.
Next targets are $6.25, $6.95, $8.30, and $9.05 according to my lazy fib drawing.
Short term run to the first levels ($6-$7) could be induced by a early dividend announcement - I don't see anything else in the short term motivating a big move.
Medium term run to higher levels ($8-$9) likely aroused by EOFY dividend and/or POSCO plant progression getting close to first 21.5kt LiOH
Monthly timeframe
Looks really promising as its inching back into middle ranges on RSI and oversold territory on the Stochasic RSI
As market catches up to the fact PLS will be producing 1Mtpa SC5.5-6% before 95% of the juniors are producing 1t of Spodumene - the SP will follow and it will be ELECTRIC...IMO.
Obviously dividends and chemical conversion in the next 12 months puts PLS into a completely different league in the eyes of the casuals.
I see PLS living in the higher/over-bought range on the RSI for a long period as it was in all of 2021 and part of 2022 - probably for the course of late 2023 early 2024.

Fundamentals
The $0.30 dividend over the course of EOFY23 is huge! Whether its 10c early divvy, then 20c later, or 30c EOFY - this is a 6% dividend yield... When has a first dividend ever been 6%?... FMG maybe?
Appointment of Chief Development Officer speaks volumes - I see a lot of merit in the speculation on these forums around chemical conversion for the PMTs of the world, or the plain acquisition or minority ownership of world class resources.
POSCO conversion facility should be close to commissioning the first half of the 43ktpa LiOH facility later this year - the extra margin on that is worth $1-$2 for the share price even if prices tank to an extremely profitable $3,500 USD/t (which they wont lol).
Right now at current production rate per annum, contract pricing, operating costs, royalties, and a Market cap to EBITDA ratio of 5:1 (which AKE and MIN are trading at/above right now)... the share price should reflect $7.50 to $9.00
I cant stress that enough - if PLS is trading at the same MC to EBITDA as its competitors.... competitors that have lesser relative size (to ownership) of resource, less quality resources, less cash, less production of lithium units per annum, less capacity to increase production, and worse track record all together with lithium mining.... the share price should reflect $7.50 to $9.00.
Obviously CALIX is a game changer with its chemical output potentially being an LFP battery ready product... if all goes to plan... it could make PLS the most profitable lithium chemicals converter in the world in the next 5yrs.
Drilling is happening, historically we have seen 20-30% resource increases post drilling activities... this puts PLS another step or two ahead of its competition, again.

I mean... I'm out of breath.... the analysts at the UBS's of the world are clearly over exposed to your AKEs and MINs of the lithium space, so they are jacking up the price targets to motivate buying.... because every seller needs a buyer... And before the mobs from other forums come with their pitchforks, I'm not saying AKE and MIN are bad, they're in great spots and should be valued as they are.... I'm just saying that in terms of objective relative valuations, PLS is so undervalued its comical at this stage.

DYOR of course.

Cheers - Woly

Expand

before the mobs from other forums come with their pitchforks

You gave me a laugh. Great review Nathan, hence our frustration.

No.	Vol.	Price($)
14	247485	$3.22

No.

Vol.

Price($)

247485

$3.22

Price($)	Vol.	No.
$3.23	265073	5

Price($)

Vol.

No.

$3.23

265073

No.	Vol.	Price($)
13	247329	3.220
5	132444	3.210
7	163440	3.200
5	22505	3.190
5	42601	3.180

No.

Vol.

Price($)

247329

3.220

132444

3.210

163440

3.200

22505

3.190

42601

3.180

Price($)	Vol.	No.
3.230	41385	3
3.240	114147	3
3.250	238898	8
3.260	195620	7
3.270	149642	6

Price($)

Vol.

No.

3.230

41385

3.240

114147

3.250

238898

3.260

195620

3.270

149642

(20min delay)
Last $3.23		Change 0.080(2.54%)		Mkt cap ! $9.721B

Open	High	Low	Value	Volume
$3.11	$3.26	$3.07	$138.0M	43.52M

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