I can see how users on HC can be sceptical. I am not in the business of lying but I probably shouldn’t have made mention to my holding in the first place. On second thought, it probably was not appropriate.
Exactly. Elon Musk quoted that he was not sure why they called batteries ‘lithium batteries’ and not ‘nickel batteries’ - LOL
However, I understand that short range batteries or (entry level EV’s) use no Nickel element. Nickel is used in batteries for vehicles post ‘entry level’ or that require long range - Which remains a huge market.
I am also learning that the market may go full nickel element in batteries as the customers could demand ‘range’ as an important factor. Notwithstanding the cost synergies and nickel being better supply than lithium.
Yes regarding dividends - I recall PAN paying about $170 million in dividends to shareholders in the past. Only draw back here I will add is that any future dividends will ultimately have to be paid out to a register that now has circa 2 billion shares (given dilution over time). In light of that, the dividend may not be that exciting unless we are generating super profits to spread more of the $$
Good question regarding future valuation (Past the mine life) - This is a huge topic which I couldn’t cover on this thread but in simple terms, PAN can continue to operate by making new discoveries or buying new sites - I understand they have budgeted few million on exploration. Don’t forget, PAN has been operating for almost 20 years and recently extended the mine life for a further 12 years through North Savannah.
Regarding future production, it’s fixed at 10,628/t per annum (includes cobalt and copper) - Have you reviewed the FY21 AGM dated 20 October 2021?
This can change if PAN decides to ramp up through new discoveries, etc. However, costs may also go up under this scenario.
PAN Price at posting:
24.5¢ Sentiment: Buy Disclosure: Held
(20min delay)