I doubt you're actually a PLS holder. You're only ever here to spread FUD, as your posting history attests.
Ganfeng is down by 1/3rd in the past 3 weeks. Do you doubt their business future too?
Bloomberg has an article today highlighting the fall in Chinese Tech stocks by over 20% on yield concerns over the past few weeks.
All EV/ESS battery chain Companies boomed in January, only to temper in February/March.
Great to see LiOH prices start to catch up to LCE and in turn drag up Spod prices.
When they finally catch up, they will drag Spod prices up above US$650, the price Ken mentioned recently as that which would "incentivize" them to restart Plant 2 (Altura). He mentioned PLS would be releasing an update on Plant 2 in Mar21. So we're looking at an ASX Announcement sometime in the next 3 weeks.
Together with the current Plant 1 upgrade to release 50ktpa of latent capacity, we could be looking at upwards of 600ktpa production. With a gross margin over US$300pt, we may look to finance further expansions from operating profits.
I'm not sure we need downstream investment. Stage 2 Chemical Conversion margins will flatten when upstream supply shortages become more apparent in the next few years.
DOW Problem? What problem? Wasn't the problem in Mar20?
DOW ATH 31,961 DOW currently 31,496 Down 0.985%
The recent falls have been centred on the NASDAQ and most specifically, on growth stocks whose current earnings don't justify their market valuations.
Certainly many stocks in the EV chain fit that criteria. Most certainly Tesla, which has seen its share price fall recently.
Tesla ATH: US$900 Tesla current share price: US$598 Down 33.56% @30Jan21 - Down 12%
Quite something to see Albermarle fall below their recent CR price of US$153.
ALB ATH: US$188.35 ALB current share price: US$143.88 Down 23.67% @30Jan21 - Down 13.64%
SQM ATH: US$60.74 SQM current share price: US$51.04 Down 15.97% @30Jan21 - Down 16%
Livent ATH: US$23.99 Livent current share price: US$16.70 Down 30.39% @30Jan21 - Down 24%
The RCF selloff really impacted on our share price at 31Jan21.
PLS ATH: $1.47 PLS current share price: 97.5c Down 33.67% @30Jan21 - Down 37%
I wonder how downstream (Stages 3, 4 and 5) Companies share prices are being affected by rising raw material prices. Has PLS been sold off unfairly by the general nature of traders deserting the EV investment market, due to rising raw material prices? Coupled with a selloff of high growth stocks.
Our share price might be down but its been resilient since 30Jan21. Just goes to show, when EV battery chain share prices bounce back, we'll be revisiting A$1.50.
Tesla had a P/E of 1,500 and Ganfeng 600. Their P/Es are now down to 1,000 and 360, respectively. PLS with a production rate of 600ktpa and a gross margin above US$300 would justify their share price with a P/E of 20. We justify a high P/E with plans in place to triple production and expectations of further improving Spodumene prices.
LIT ETF ATH: 74.83 LIT ETF currently: 59.00 Down 21.15% @30Jan21 - 10.94% Started down another 3% last night but finished up 3%.
GXY 52 week high: $3.29 GXY current share price: $2.20 Down 33.13% @30Jan21 - Down 18%
ORE 52 week high: $6.06 ORE current share price: $4.25 Down 29.87% @30Jan21 - Down 17.5%
Asian stocks began the week well but fell recently. They were around flat to up, friday. Bloomberg has an article today highlighting the fall in Chinese Tech stocks by over 20% on yield concerns.
CATL ATH: CNY425 CATL current share price: CNY320 Down 24.71% @30Jan21 - Down 16.70%
Ganfeng ATH: CNY149.30 Ganfeng current share price: CNY98.50 Down 34.03% @30Jan21 - Down 19.76% Ganfeng are enjoying rising LiOH prices, yet they're down 34%. Their P/E was very high. The announced CR is always going to depress their share price.
Tianqi ATH: CNY70.13 Tianqi current share price: CNY41.16 Down 41.31% @30Jan21 - Down 14.52% Tianqi still has unresolved debt/finance issues. Needs to CR. Greenbushes plan to expand to produce 1.95mtpa, will remain on hold until they do.
LG Chem ATH: KRW1,050,000 LG Chem current share price: KRW904,000 Down 13.91% @30Jan21 - Down 12.67%
POSCO Chem ATH(@30Jan21): KRW147,500 POSCO Chem current share price: KRW161,000 Up 9.15% @30Jan21 - Down 8.81%
All the big Lithium raw material players are CRing. That always suppresses share prices: In Dec2020, POSCO Chem announced a US$1.3b CR. In Dec2020, SQM announced a US$1.1b CR. In Jan2021, Albermarle announced a US$1.3b CR. In Jun 2020, Livent announced a US$225m CR. I read recently they are proposing another. In Feb 2021, Ganfeng has announced a US$1.1b CR.
PLS Price at posting:
97.5¢ Sentiment: Buy Disclosure: Held
(20min delay)
