PLS sector -relevant media updates, page-18

My initial reaction to reading this AFR article was ... meh.

"It is understood IGO Ltd is considering a $2 billion-odd deal which would see it pick up at least a controlling stake in Greenbushes, which is owned by China's Tianqi Lithium Corporation."


Considering Twiggy was looking at paying $A3b to $A3.5b for Tianqi's 51% share 6 months ago, it seemed ... wrong.


I now notice the AFR has upgraded the article and it now reads:

"It is understood IGO Ltd is considering a $2 billion-odd deal which would see it pick up a 25 per cent-odd stake in Greenbushes, which is owned by China’s Tianqi Lithium Corporation."

https://www.copyright link/street-talk/igo-prepares-monster-lithium-play-bankers-line-up-capital-20201207-p56l5m


So IGO may pay $A2b for a 25% share in a Company with a resource comparable with the combined PLS/Altura resource at Pilgangoora. It has processing plant up and running to produce 1.34mtpa of SC6, whereas PLS/Altura has 550ktpa.

So if PLS forks out another $A0.5b to increase the processing volume ... are WE then worth $A8b?

Does IGO's 25% share include any share of Tianqi's Stage 2 plant at Kwinana? I doubt it.


Given the grade, GBs has lower operating costs ... but its a decades old mine and their extraction is now very deep, implying higher costs. Chris Ellison's statement last week that the Pilbara Spodumene resources are untested at depth, springs to mind as well.