PLS upside 2020 and beyond, page-139

Interesting that short positions in MIN have increased from 2% to 8% over the last 3 months. They've put Wodgina into temporary C&M but the ALB deal was settled. Were shorters expecting it to fail?

Meanwhile short positions in PLS have fallen from 12% to 6.82% in the same time. There was so much speculation about the quality of PLS's production, principally from the same people who were threatened with legal action by MIN, after spreading lies about their production.

Rumours about PLS's production quality amplified with the deferment of sales to Ganfeng. Now both GXY and MIN have confirmed the downturn in Spodumene demand from oversupply. Conclusion: PLS's production is top quality.

However, the real question is, what is the cost of production? The recent quarterly report did nothing to address that we can reduce costs below USD500. At current prices, there is no earnings value in PLS but for market asset value.

Goldman Sachs and Morgan Stanley recently suggesting prices have likely bottomed for Lithium. Industrial action by leftists in Chile interrupting production of the Big Brines. Impending leftist government for Argentina saying they want to foster Lithium producers. I guess they take comfort that politicians never lie. Do they? All this leading to considerable buyer support for the Lithium sector, especially PLS.

The best thing I could find in the quarterly was "two small mining campaigns are expected during the December Quarter 2019 to support the required plant production. Mining activity on a continuous shift roster is likely to restart during quarter three of the 2020 financial year (FY2020), subject to market conditions and demand as assessed at the time."

Given the state of the Lithium sector you'd have to expect the POSCO JV decision to be defered into CY2020. Signing of same would be a positive for the SP in the Dec19 quarter.

I was feeling gutted when we hit 27c and being in the red. However, hitting 35c today has me almost Back in Black. Sounds like a cue for AC/DC but I feel like Cigarettes After Sex. So ...

https://www.youtube.com/watch?v=y7qmd4pM0_w