Under the radar report 19/5/16

http://www.undertheradarreport.com.au/LiteratureRetrieve.aspx?ID=214556

"Matthew Trivett from BCP Equities has researched the graphite and lithium markets to investigate which companies we [undertheradarreport] believe represent the best exposure to an area where there is clearly a great deal of hype."

They're right about hype. But hype goes lots of different directions.

My take is that he appears to underestimate

• the difficulties with startup and scaling brine processing,
• rate of growth of demand from traditional and emerging applications
• the disruptive potential for the Li market due to rocketing demand

But the most significant claim for PLS in my view is this:

"Only four [ASX listed companies] have defined resources; and only three have reserves (economically mineable lithium) – Orocobre (ORE), Altura (AJM) and Galaxy Resources (GXY)."

This report is putting out a view. Fine. It's an extremely conservative view and a little eccentric.

It's missing out (whether deliberately or unintentionally) on the fundamentals that account for the rise of PLS.

Doesn't worry me. PLS is long term thing.

Bring on the DFS.

T

PS still learning the posting ropes...