Hi Everyone, here's my unsolicited 2c on what's going on at the minute...
ChartsWeekly view:Spodumene PriceMonthly view:
- Looks like a healthy retracement is over and a bit of sideways chop is on the menu for a week or so.
- Same place on the RSI last run had another +240% increase to follow
- We're wayyyyyyyy below previous run in stochastic RSI - which leads me to believe there's still a lot of juice left in this run with the the super optimist case of $15 share price.
Note:
- The realist case in the short term is around the $7 mark I reckon.
- $15 @ current commodity prices and current production is fair value on a very conservative EBITDA/MC ratio of 6:1...
- More on that below.
Fundamentals
- All time high was broken on the lithium carbonate pricing
- BMX has sold 5,000t at $7,800 SC6% equivalent (new all time high for SC6%)
PLS Production & Shipping
- Every reputable expert that is familiar with the lithium landscape is championing that prices will be "stronger for longer"
- Average price for the most recent quarter likely $5,000 USD or more
- Mines coming online are tiny compared to PLS (except for the likes of LTR which is like 2+yrs away and half the size of PLS)
- Demand is only tightening with more OEMs ramping up, there will be more all time highs to follow
Price x Production
- FID complete for p680 with a slight nod to improve other plant in preparation for p1000
- p680 likely on track for mid next year
- p1000 likely to follow same time in 2024
- Looks like we have shipped 160kt SC6% equivalent this SEP quarter with 1x container not accounted for yet
- Sep qtr shipping is at a run rate of 640ktpa
Valuation right now, near, and medium term
- The maths is simple... for the Sep qtr we're looking very least $800M USD ($1.2B AUD)
- The current p580 annual run rate at $5,000usd/t is $2.9B USD ($4.3B AUD) per annum
- The p680 annual run rate at $5,000usd/t is $3.4B USD ($5.1B AUD) per annum
- The p1000 annual run rate at $5,000usd/t is $5B USD ($7.5B AUD) per annum
- You can see below where we should be right now with current pricing - approaching the $9 range on a conservative day with (i) 6:1 EBITDA:MC ratio (ii) conservative operating costs at $650usd/t, and (iii) a slightly lower exchange rate
- In the near term with p680 coming on line within 6-8 months, the valuation is well over $10 and with spodumene prices likely improving some more, theres no reason the SP wouldn't be around the $15 range
- In the medium term with p1000 in a bit over 18 months, i see us easily flirting with $20 (if SC6% prices stabilize around where we are now).
- PLS will be in the ASX 50 with all the indexes buying in. And likely improve to ASX top 20 bringing even more stability
- Do I even have to say it?..... guys......Dividends soon.... Everyone living off super will want PLS (or more) after the first dividend payment.
- REMINDER: I haven't prices in the obvious value that the following venture will bring: (1) POSCO JV will easily add $500M extra revenue at 30% ownership, (2) CALIX is Dale's baby, its likely to bring more value than POSCO, (3) with the cash on hand over the next 12 months liekly being in the $4B-$5B AUD range, there is likely M&A activity on the horizon, (4) Its currently exploration season, we could have another routine resource increase, and (5,6,7,8) I've probably forgotten a bunch of crap too.
Just look at how pretty this picture is
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Hi Everyone, here's my unsolicited 2c on what's going on at the...
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$3.02 |
Change
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Mkt cap ! $8.954B |
Open | High | Low | Value | Volume |
$3.01 | $3.03 | $2.96 | $24.70M | 8.245M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
30 | 192802 | $3.01 |
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Price($) | Vol. | No. |
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$3.02 | 49426 | 15 |
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No. | Vol. | Price($) |
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36 | 191515 | 3.010 |
23 | 185412 | 3.000 |
20 | 197926 | 2.990 |
20 | 212716 | 2.980 |
Price($) | Vol. | No. |
---|---|---|
3.030 | 450336 | 43 |
3.040 | 320027 | 21 |
3.050 | 514899 | 42 |
3.060 | 202039 | 29 |
3.070 | 298129 | 9 |
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