At the end of the day, SP here IMO is been driven by lithium price growth and IMO a market viewpoint that AVZ will get to production before 2025 (and probably 2023/24). Need that ML now and get cracking with construction etc etc, as well as that provides also the best opportunity to take advantage of the good spodumene prices we have. Ultimately as new production comes onstream, just like any commodity sector, prices abate to lower long term average prices at some point. PLS's SP is going gung ho at the moment because existing producers are indeed well placed to take advantage of current spodumene prices. The earlier into production AVZ can get the better will be its NPV as well, as higher prices at the start of the project in a NPV sense act as a huge tick in NPV valuations.
Nice day to have a long neck VB too.
All IMO
AVZ Price at posting:
92.0¢ Sentiment: None Disclosure: Held