What's PLS worth?, page-108

@PASBOZ

“--“The quality of spod (grade and impurities) impacts the conversion process and quality of lithium chemicals that can be produced following the conversion process.” (Tianqi Lithium Australia 2019 August) This applies to all new WA producers but you won’t learn that listening to them. “—”

Q: What’s PLS worth?

A: I note PLS has dropped reference to its ‘SC6’ as chemical grade or battery grade. And likewise for lithium hydroxide.

This is in contrast to Talison Greenbushes Tianqi Lithium who retains grading between spodumene concentrates and derivatives, such as lithium hydroxide.

It’s clear comparing Tianqi’s specifications and the little bits PLS confess, that that tantalum resource region explorer, PLS, will likely not meet the grade of high end lithia products low cost, why?

It starts with what’s in the ground impacting conversion process.

So what’s the value? Until the SC6 market is regulated around a Tianqi like standard for SC6 due to increasing safety and commercial pressures to supply high quality lithium derivatives to battery makers the market will he confuses because mediocre suppliers currently reign and when they are demanded to lift their game it will be expensive.

After one year the writing is on the wall for PLS that there’s high chance it won’t meet Ken’s June 2020 cost base target because it just isn’t a high quality resource (that’s where your fate begins according to Tianqi) compared to Greenbushes and another.