We discussed PLS in Shawn Trading Ideas on Monday. After dropping another 8.4% this week, our target area is coming into view faster than many thought likely. Pilbara Minerals’ cost of producing lithium, measured by the All-In Sustaining Cost (AISC) per tonne of spodumene concentrate, is forecasted to be approximately $US995 for FY2024. This represents an increase from $US839 per tonne in FY2023 and bad news with the commodity closer to $US800. Fortunately, PLS holds a solid net cash position of approximately $1.8 billion as of the interim FY2024 results, but to thrive, the Li price needs to lift.
- We note that PLS still looks and feels “wrong”, but that’s no surprise as it plunges toward multi-year lows.
MM likes PLS ~$2.15
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