PLS advanced by +1.3% on Monday, following Liontown (LTR), which closed up over 2%. This is an aggressive pure Li play, but we now prefer PLS, which features a classic “DOJI” (candlestick chart) formation on the weekly chart, making it more appealing to technical analysts who follow Candlestick Charts – shown below. We like the fact that PLS is a relatively low-cost producer with cash on its balance sheet. In February, they announced spodumene sale prices that showed improvement with a realised price of US$700/t spodumene concentrate, up from $US682 in the previous 3 months – current prices into China average ~$US850/t.`
- No change; we can see PLS testing $2.50 and potentially $3 in the coming months, assuming it holds above $1.75, which is a reasonably attractive risk-reward.
MM is cautiously bullish about PLS
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