@PJLongford"why Aus lithium stocks have tumbled back from the...

@PJLongford
"why Aus lithium stocks have tumbled back from the great start we had today?"

I really don't know. I think you'd have to ask the whales and sharks who are engaging/engorging in the feeding frenzy. Perhaps they've just stopped to burp?


@Guemar
"Why don't we just buy Greenbushes too while we're at it."

The participation of Australia's largest Pension Fund, Oz Super in PLS snagging ALO, begs the question ... Will/would/could they look to support us in further acquisitions???


The AFR article today on IGO, quotes their CEO saying that they consider that they are buying the minority interest in Greenbushes, "at the bottom of the cycle".

https://www.copyright link/chanticleer/igo-s-2b-lithium-play-is-a-bet-on-the-tesla-boom-20201209-p56lyy

They've very sensibly participated in the Kwinana chemical conversion plant HOWEVER, I return to the long held belief that for maximum effect (because LiOH doesn''t travel well and must be used quickly at Stage 3), a Stage 2 chemical conversion plant should be located next door to a Stage 3 Cathodes/Battery parts plant. Especially nowadays when impurities are measured in parts per billion to measure battery quality, rather than parts per million.

Still, maybe Tesla (or Australia) will consider building a Terafactory in WA?


I'm only trying to gauge a ballpark estimate of a range of valuations for PLS. Buy, hold or sell decisions are subjective. As shareholders we all walk around blindfolded. We can only at best hope to have some measure to judge the current market share price, fundamentally based on the market value of the Company's assets.

Conclusion: even at todays prices and after the increase of the past month, PLS is still materially undervalued.

If IGO consider they are paying A$1.9b at "the bottom of the cycle" (and in turn valuing Greenbushes at A$6b+), then perhaps my $A1.30 to A$2.00 range for PLS is way under?


The major plus with Greenbushes is that the plant works perfectly and its profitable even at current Lithium pricing. I return to the comment where Ken said in 2017, that major Companies would not consider buying PLS until we have proved that the plant works and the EV/ESS Industry is validated. The current calendar year has been a horror in many respects but I feel the two major boxes confirming PLS future success, have now been ticked. The Tesla share price didn't take off until they proved they could be profitable.


CATL, Ganfeng and LG Chem all up again today. In fact, Ganfeng hit another ATH earlier but has come off a bit since.