PLS 6.29% 74.5¢ pilbara minerals limited

Brainstorming strategic opportunities

  1. 17 Posts.
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    Theorising about strategic purchases post sell down.

    Following the sell down PLS may have cash to spend on various opportunities if it is nottied up in the sell down deal itself. I was hoping to open discussions around what people think may be purchased with the cash.

    For years Yoda wink.png has been preaching a merger between AJM and PLS I thought this isworth theoretically exploring, particularly with Ganfeng being their main offtake partner, economies of scale, and location.

    For exercise sake lets say the PLS sell down is for $1,119b (Obviously this mayvary significantly).

    Uses for cash:

    • Hydroxide plant estimation: ~$460M for 50,000t lith hydroxide (ASSUMPTION)
    • Estimated cost for stage 2: ~$230M
    • Takeover of AJM
      • AJM's market cap$286M
      • AJM's market cap + 50% premium: ~$429M (ASSUMPTION)

    Some quick info for reference:

    AJM: Ore reserve estimated 41.1Mt

    • Stage 1 (220,000 tpa) offtake partners
      • Ganfeng 70,000 tpa
      • Lionenergy 100,000 tpa
      • OptimumNano 50,000
    • Stage 2 (220,000 tpa)
      • Ganfeng have option of 110,000 tpa
      • Remainder 110,000 tpa?

    PLS: Ore reserve estimate 108.2Mt

    • Stage 1 (300,000 - 350,000 tpa)
      • General Lithium 140,000 tpa
      • Ganfeng Lithium 160,000 tpa
    • Stage 2 (500,000 - 550,000 tpa)
      • Ganfeng Lithium expected 150,000 tpa
      • Great wall expected 150,000 tpa
      • POSCO expected 240,000 tpa

    Another potential is to build a much larger hydroxide plant.

    What other opportunities can you see are available to us?

    All the above is in my opinion.

    Last edited by Cunial: formatting 05/04/19
 
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