Pilbara Minerals Ord Shs T.PLS

RE:RE:New Low

[seatleslim]

Current valuation doesn't make much sense to me. Lumpy quarters were always going to be the case with a single asset company. Orca is easily a top ten property in Vulcans portfolio (see annual report), based on reserves and volume alone. Add in the specialty nature of Orca's grade and declining reserves in one of the country's largest growth markets and it would be a crown jewel even in their portfolio, ignoring LA. Other than a massive property in Mexico on Gulf they have exactly one property doing more than 3mm tons per year in volume (Chicago). Also ignoring that Orca already has a 40% plus market share in the Bay area; likely close to 100% for high spec applications. Also ignoring they themselves are another 25-30% of that market. Who knows what the end of the year brings in the ugly Canadian natural resource space, but it seems to me than PLS has already fallen well below a price that Vulcan would eagerly pay to create a 70% market share in a top five market. (and, no, that's not based on current gross margin or ebitda multiple) I personally think the Hanson negotiation is noise. How does US Concrete participate in a pour like the one on the tower in SF without Pier 94 supply, ignoring the proposition that they've been using the best material and would tolerate going backwards.