PLS

1.67%

$2.43 pilbara minerals limited

Pilbara to double and triple down, where will the money come from?, page-26

First 26 Last

Share
Profile

Follow
OldSpice

41 Posts.

6

26/03/19

20:09

Post #: 37892257
Share

Originally posted by El Jefe ↑

I would have thought that some studies would need to be carried out and considered before an FID takes place in May. These are said to have been completed yet nothing has been presented to shareholders or have I missed it? MIN are undergoing some studies expected to be released to shareholders soon regarding costs for the plant they are proposing.
This is what PLS holders get told, from recent announcement;

"Proposed chemical conversion plant offers a comparable capital and operating cost base to recently established/constructed and operating lithium chemicals projects"

What is that supposed to mean?

Based on those comments, the most recent cost guidance that I know of is for the Tianqi plant (who already process lithium/have experience in this space). They have guided $700m for 48 ktpa, which is fairly in line with the $US400m 40ktpa from CG for Posco taking into account cheaper labour in South Korea and 8ktpa less plant size but costs have blown out towards or over $1B by some reports at Tianqi. We can also cite the cost blowouts at Nemaska as another example (to a lesser extent) of the struggles Posco/PLS are likely to face. Red flag no. 1

"Patented PosLX electrodialysis processing technology developed over more than eight years"

How many times have we seen these "groundbreaking processing techniques" fail? In the lithium space we have Nemaska once again, new tech, big blowouts and delays very likely and there are plenty of other examples in other commodities that prove this point. Joe Lowry touches on this also. Red Flag no. 2

But to answer your question, capex estimations are from CG at $US400m and
"CG have said they expect downstream participation to be value accreditive and increase group earnings by 12%."

Long story short, the odds of cost overruns are far more likely not, just by how much.
High risk/not so high return endeavour to increase group earnings by 12%.

In other news that bat stew was sensational.

Expand

So up and running total debt is less than 1 times annual EBITDA.

Pretty comfortable gearing level, and the people lending the money seem happy enough. I'm backing them.

PLS Price at posting: 69.0¢ Sentiment: Buy Disclosure: Held
17 Upvote

0 Great analysis

Reply

Top Stories

Breaking news: New opportunities for investors & companies - HotCopper opens to capital raising!

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

There are more pages in this discussion • 21 more messages in this thread...

First 26 Last

Add PLS (ASX) to my watchlist

(20min delay)
Last $2.43		Change 0.040(1.67%)		Mkt cap ! $8.672B

Open	High	Low	Value	Volume
$2.41	$2.48	$2.39	$63.64M	26.06M

Buyers (Bids)

No.	Vol.	Price($)
9	682892	$2.43

Sellers (Offers)

Price($)	Vol.	No.
$2.45	58660	6

View Market Depth

No.	Vol.	Price($)
5	295865	2.660
11	285796	2.650
7	195605	2.640
1	5000	2.630
5	167434	2.620

Price($)	Vol.	No.
2.670	2000	1
2.680	348102	3
2.690	2112	3
2.700	202804	12
2.710	64522	10

Last trade - 16.10pm 02/12/2024 (20 minute delay)

PLS (ASX) Chart

Pilbara to double and triple down, where will the money come from?, page-26

Breaking news: New opportunities for investors & companies - HotCopper opens to capital raising!

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Pilbara to double and triple down, where will the money come from?, page-26

Top Stories

Breaking news: New opportunities for investors & companies - HotCopper opens to capital raising!

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News