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6,064 Posts.
231
21/06/17
22:08
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AGO owns royalty over AJMs production which could generate circa $8M a year. Based on their expected production of lithium end of this year.
Cash inflow of $8M as a royalty prorate over 2018 calendar year.
PLS is high risk. They have bonds of 12 percent for $100M.
Mt Webber has 5 years mine life at 8-10M tonnes vs 6 years at 7-8M tonnes.
If they can achieve a margin of $5aud we
can still expect $40M-50M a year of cash inflows.
PLS still needs to pay AGO for JV in cash or shares.
Only thing to look out for is bulk commodities investments or buyback. $13M is 1B shares atm.
Get a buyback going the in ground assets will always be there. After options expire.