You hit the nail on the head. So what I'm trying to get at is: a) Wholeheartedly agree there is a fundamental disconnect between spot and contracts. However due to our offtake agreements are we currently taking advantage of that? As per Rodney Hooper analysis = no. b) Are we going to take advantage of the fundamental disconnect in the future due to our managements negotiation skills on existing offtake agreements = ????
Big question mark until next quarters sale price results come out (on offtakes given for the next x years these will form majority of our production sales) - whether we (PLS) has any power in renegotiating these existing offtakes - given the contents of these offtakes aren't public knowledge. No one is privy of these fact except management.
All I'm trying to say is that yes, it's great spot prices are at $1,250/tonne. However the real test is our managements negotiation skills on existing offtakes. Do they have the negotiation skills to materially increase our sales revenue - at this exact point in time, no they don't (as evidenced by Rodney Hooper). Will they in the future - remains to be seen and next quarter will be the real test.
PLS Price at posting:
$1.77 Sentiment: Hold Disclosure: Held
(20min delay)