PLS

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$2.98 pilbara minerals limited

Resource Stock Valuation, page-2

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16/05/16

17:24

Post #: 17781046
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Originally posted by SuperNinja ↑

Hi all,

How to tell a clown. A clown will come out and say something is overvalued with no basis - just like the article in the Australian = very ignorant. Check demand side...

There are three ways to value a resource stock:

1. Discounted Cashflow Analysis (DCF) - where you look at each years net profit cashflow and work out what that is worth in todays terms. Typcially 10 years out as after that the discount becomes so great it has no value. This can become subjective and poor analysts like the Fosters guys can make mistakes due to a lack of caring. Blue Ocean has us at a strategic target of 2.20 using this method.

2. Enterprise Value divided by Reserve + Resource. This shows what each company is worth relative to each other. Something the clowns totally miss. I like to use this as it is the real value of everything as determined by the market. The numbers show PLS has 3x upside to catch GXY / GMM. Tianqi Lithium would be 9x today.

3. Takeover prices. Well Greenbushes which is likely smaller than us - USD 815 million. So this should be your line in the sand as this is what other companies think you are worth and willing to pay for. It was also before the price of lithium massively escalated (can someone put up our takeover value on this basis).

So.... if you want to call PLS overvalued then super. But use a basis like the above. Not just jump on a newspaper and look ignorant each of his arguments for getting into grpahite with every $ he had are the same for getting into PLS.... anyhow each to their own... an empty kettle makes the most noise my grandma used to say.

Make up your own mind to valuation. As previously stated I think we have a lot more to go.

We still have 4 to 5 mahor catalysts ignoring surpises coming out in next 4 months that each potentially add real value to our share price.

Good luck,
Super Ninja

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Hi Super Ninja - at the PLS presentations way back (late 2014 /2015), NB and co continually pointed out (with glee) how concentrate prices were up 50% from US300/t, at around the time of the Greenbushes transaction, to US450/t. Contract prices for 5.5% concentrate now struck at US600/t.

Pretty simple mathematics to get PLS valuation into the AUD1.5billion ++ range, if we can match the greenbushes LCE. Nothing factored in there for frenzied state of the Li market at the moment and other 'x' factors.

PLS Price at posting: 77.5¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last $2.98		Change 0.110(3.83%)		Mkt cap ! $8.969B

Open	High	Low	Value	Volume
$2.99	$3.10	$2.95	$98.90M	32.90M

Buyers (Bids)

No.	Vol.	Price($)
5	16986	$2.97

Sellers (Offers)

Price($)	Vol.	No.
$2.98	175531	5

View Market Depth

No.	Vol.	Price($)
3	10510	2.970
8	39383	2.960
14	24870	2.950
4	22003	2.940
5	133155	2.930

Price($)	Vol.	No.
2.980	2500	1
2.990	500	1
3.000	120270	5
3.010	24132	5
3.020	21979	5

Last trade - 16.10pm 26/07/2024 (20 minute delay)

PLS (ASX) Chart

Resource Stock Valuation, page-2

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Resource Stock Valuation, page-2

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