Pilbara Minerals Ord Shs T.PLS

Primary Symbol: PILBF

Metals & Mining Industrial Metals & Minerals

Pilbara Minerals Limited is an Australia-based lithium company. The Company is primarily engaged in the exploration, development, and mining of minerals in Australia. Its 100% owned Pilgangoora hard-rock lithium operation is located approximately 120 kilometers (kms) from Port Hedland in Western Australia’s resource-rich Pilbara region. The operation consists of two processing plants: the Pilgan Plant, located on the northern side of the Pilgangoora area and produces spodumene and tantalite concentrates, and the Ngungaju Plant is located to the south produces spodumene concentrate. It owns 70% of the Mt Francisco project, which is located 50 km south-west of the Pilgangoora Project and hosts the large occurrence of outcropping pegmatites located nearby to Port Hedland. It is also pursuing a proposed downstream joint venture (JV) for the development of an approximately 43,000 tons per annum (tpa) lithium carbonate equivalent (LCE) lithium chemical conversion facility in South Korea.

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Pilbara Minerals Ord Shs > New Low

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Comment by seatleslimon Nov 26, 2015 12:21pm

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Post# 24328361

RE:RE:RE:RE:New Low

I think the price to sales ration is relevant and a good point, but needs to always be in industry-specific context. For example, VMC is selling at 4.5X sales, which is a function of existing margins and expected operating leverage going forward. Hard to know what the right ratio is for PLS, but it is in flux with volumes, price and margins. Remember the volume disruption occurred just as prices were increased. Hopefully "normalized" revenue is higher than LTMs, or current run rate. And then there is also the value of non-earning or revenue generating reserves reserves. VMC of course has this also, but relative to existing operations and all of the other qualitative measure, are PLS's more valuable ton-for-ton? It would seem that PLS has more room for margin improvement than VMC (notwithstanding its great prospects).

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