- $758M tax bill from that $3B. That's a good thing. I claimed back in full, my franking credits in the last SMSF tax return and will again this FY2024.
- Posco JV funded by a non recourse loan from Woori Bank and The Korean Development Bank
- FY24 capital expenditure reduced by $55-$100M following deferral of non-essential projects. FY24 capital expenditure guidance now $820-$875M.
- There were other one-off investing cash flows of ~$98M (including share purchases and a stamp duty payment on the Altura acquisition)
- $220M and $170M capex spend in the Dec and March quarters respectively.
- the Group is able to fund its P680 and P1000 expansion plans and maintain multiple years of cash runway at sustained lower spodumene prices. The Group has, and will continue to, run scenario analysis to ensure that its operation is optimised, and its balance sheet is as strong as possible.
- As we know from @nightflyer and@Don93, Vessels are coming thick and fast. This is totally different to 2018/19 when they didn't want our product. There is a clue right there about the apparent oversupply.
PLS is in a very strong financial position. It is fully funded, has multiple finance options, if required, and is still cash flow positive at current prices. I suspect the balance will stay above $1B this quarter. Won't get a tax hit, that's for sure and royalty payments have come off so unit operating cost will benefit.
If the current pricing scenario continues, many operators will shut shop and all the talk from wannabe producers will be just that, talk. The Tier 1, current and future producers will be fine. The marginal producers will struggle to stay open. Don't expect a rush of new Lithium mines coming online anytime soon. Mt Holland, LTR and a few others may be it for several years with brown field expansions from current producers the only other substantial sources of supply. Yes, Africa, Lepidolite, DLE, blah blah blah. We'll see if that ratchets up substantially.
Apparently BYD doesn't see any great sales hit from the 17% European import tax. They have plenty of margin to play with.
Yes, patience required and this may take years to play out, or not, IMO. If you are here for short term capital gain, you are obviously in the wrong sector/company, unless you are a trader like many do here for various reasons.
I originally thought my first dividend would be 2025/26. What I received was a fully franked amount of 35.7c, enough to fund my retirement for 3 years if I required it to, and nearly enough to free carry my holdings. What's not to be happy about.
GS and the other FIBO members haven't had any sway in my decision to stay invested in PLS since 2018. They have been correct and incorrect multiple times over that timeframe and I don't think their track record will be any better than others who have put their analysis out there.
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