Bit early for this given news isn't official but let's look at...

Bit early for this given news isn't official but let's look at some numbers.

We will assume this pretty much locks out our supply for a 5Mtpa operation. 30kt of downstream will take between 225-240kt of feedstock so that gets us to 825-840kt total. 1.35% and 75% recoveries get's us to that number so well and truly achievable based on the current plant.

Let's say spod prices of $1,000/t and all in costs of production for us at $300/t.

We sell 840Kt at $700 margins = $588m. I am assuming as part of the downstream co-operative all feedstock is sold at market value, even that going to ourselves.

We then have 10kt of downstream product selling for margins of about $15k at current prices ($10k cost and $25k sale) = $150m

So that gives us earnings of $588m + $150m = $738m. Converting that to AUD at 0.75 = $984m

Now if you look at the KDR forum recently Paragon investments did a research note saying that two of the majors with downstream capacity were trading at 25x EBITDA and one was trading at 16x EBITDA. So let's call the average 22x EBITDA.

That would give PLS a valuation of $21.65bn at today's lithium prices.

I think that even trumps PF's calls. We are out of control