The fact that quite a number of HC participants have been predicting the share price by the end of the year, says to me that we pretty much all see a value shift coming. The obvious matters likely to affect the value/price are:
1. Resource upgrade at Pilgangoora
2. Commencement of production at TT
3. Receipt of first receipts from TT
4. Further drilling success at P.
5. Completion of acquisition of other 50% interest in TT
6. Further off-take interest
7. Completion of PFS
8. Movement on plans regarding P. plant
9. Early offer
10. Global markets
11. The rapid movement in the lithium space
12. Technical and metallurgical considerations
There are a lot of variables here, however, from where I sit the overall vibe is very strong.
If I can quickly re-iterate from the other thread, what share price predictions are currently out there:
Blastfurnace - 32c
Uttsy - 24c
Sinkorswim - 20.5c
Tryingtomakeit - 27c
Mr Plough - 29c
Gloryssfc - 26c
Kiwijuice -14c
NauT - 27.5c
Segasdag - 50c
dT7 - 49c (Pokerface is on this one too)
Couchsitter - 33c
Dierteye -39c
Jumpinjoey -25c
DrEagle - 50c
Number 61 - 43.5c
o.c.16 - 19.5c
That is quite some range, but look at the positive, no one is saying less than the current price.
My understanding is that the TT Plant is pretty simple to operate and only needs a few people. That surely is a massive positive. Worst case we all go up there and make it work...lol. The permitting seems to be awfully close to getting across the line, and the plant is being constructed and presumably, testing is not too far away. The risks around this all seem pretty low.
The Resource upgrade and the 60mt resource by the end of the year seems to me as a no brainer, done and dusted. That is probably where 90% of my view around the share price uplift is emanating from, plus the reality is that Pilgangoora is very likely a >100mt resource (and I have listened very carefully over the past 12 months to many conversations around this). The nature of the resource seems to have been settled by the scientific testing, as regards the low iron content, which feeds into "our" view of the Resource being incredibly valuable and rare.
Lithium is the metal of the moment and for the foreseeable future. Right place right time etc etc. Cannot help good luck!! So we are sitting on the second largest high grade rock borne spodumene/tantalum deposit on the planet. Mmmmh. To me that is the stuff of serious premiums. We start to factor in where lithium prices might head in future years. Do not discount the importance of the tantalum. In the modelling it accounts for around 20% of annual revenues and makes a massive difference to the projected profit.
The vibe is we are going to see some corporate activity. Again this feeds my optimism.
Promotion - I know the management team. I think with the RRS on the GC coming up on Thursday September 24, things will happen. I note that with the latest drill results they mentioned there would be a Resource upgrade during the month of September.
Globally things are a bit of a mixed bad at present. The Dow being hammered right now may not be such a bad thing for PLS. The demand for lithium will probably not be affected. We are in the early stages of a revolution. As someone said this week, PLS might be likened to the Saudi situation when oil became globally very important - perhaps a bit of a stretch but I think we get the analogy.
The PFS is important and I have a feeling that will be pushed along quite quickly. GAM is important to all this and I gather they are on side.
So, I have said 49c, and I have no doubt that if Beer & Co are still doing their updates that they will hit 49c before too long, and off the back of a proven 60mt resource, then definitely. Will the share price move to valuation or beyond? Who knows, but things are looking mighty good from where I sit. I think we have a lot to look forward to over the coming months. The traders have made a few bucks along the way, but I think the Register is now pretty tight. We need to get past the meeting next week, but I do not see much to worry about there.
GLTA, and we might see a few of you at the RRS in late September.
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