Hi FlippaIGO certainly are spending a lot of money lately, but...

First 48 Last

Share
Profile

Follow
SpikeCanonBooks

49 Posts.

28

16/04/23

20:08

Post #: 67300642
Share

Originally posted by Flippa01: ↑

Hi SCB
Who knows at the moment PAN has been spending a lot of money the last few years with WSA acquisition, buying into Greenbushes and Tianji (however its spelt) Li Carbonate plant ( which still is not running at nameplate or anywhere near it) and now saying about Precursor facility at Kwinana ( which will cost a lot BHP's bolt on Ni Sulphate facility cost $240M and they already had all the infrastructure such as switch yards, acid plant, hydrogen plant, tails facilities, thickners, autoclaves etc).

Costs are coming down as can be seen in last Ann and really thank goodness they extended shutdown so it could be done fully. If they had of limped the mill till next shutdown the liners might not have made it or they may have run out of serviceable cyclones. At least now mill is relined, pipes ruberlined that required it , cyclone bank cleaned and cyclones ceramic redone and whatever other little unserviceabilities rectified they can have a strong run ( if ore available) in last quarter to make guidance and lower costs again. Recovery is getting very good for a single mill operation a vertmill after the cyclones would help for a finer grind into float decks that would get it up to 85-87% but it all takes money. Looks like by Ann they have a bit of ore left over from last qtr to add to this qtrs mill feed for a good run and improving recovery to boot.

This Qtr can really make the market (and maybe a partner or TO) take notice if they have a solid run and keep good quality feed up.

Expand

Hi Flippa

IGO certainly are spending a lot of money lately, but their lithium operations in Greenbushes and Kwinana are already causing IGO's earnings to sky rocket.

UBS has them forecasted to:
- Earn $1.8bn in FY23 and to have $400m cash on hand by 30 June 2023.
- Earn $2.1bn in FY24 and to have $1.85bn cash on hand at 30 June 2024.

As such, while I agree they are spending big with WSA and the new proposed Nickel facility, they certainly have the money coming in to launch a bid for PAN if they choose.

I'm relatively new to this so I wasn't around for the 2019 IGO offer for PAN, but I would assume based on the above that IGO are in a far more comfortable position to pay for PAN now than they were then.

Without the need for debt and with a downstream processing plant ready in 5 years, I think it's lining up for IGO to make its move for PAN soon.

As a side note, it's looking like MIN will top IGO's bid for ESS sometime this week, after MIN did some heavy buying on Friday. If that deal falls through for IGO, maybe they turn their attention to PAN?

PAN Price at posting: 14.0¢ Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

Reply