Buy Add 14/12/2023
Pilbara Minerals Ltd (PLS)
*** GENERAL ADVICE ONLY ***
Description
Industry: Basic Materials
Pilbara Minerals Limited (PLS) is a producer of lithium and tantalum with a strong commitment to the development of its 100% owned Pilgangoora Lithium-Tantalum Project. This project is located approximately 120 kilometers from Port Hedland in the Pilbara region of Western Australia. In the past year, construction of a 6 MW solar photovoltaic plant began at the Project as a result of a 15-year power purchase agreement with Pacific Energy Group.
Metrics
Market Cap: $10.5B
PE: 4.42
Yield: 7.16%
Trade
Allocation: 1% Entry: $3.8 Target: $5 Stop: $3 (10% Trailing)
Catalyst
Investing 1% of our portfolio allocation in PLS presents a compelling opportunity. PLS stands as the most shorted stock on the ASX, with a substantial 20.45% short interest. This indicates potential for a short squeeze, which could lead to a rapid price increase.
Also, the surge in China’s lithium carbonates futures, hitting a 10% limit up at 103550 yuan per ton, underscores the increasing demand for lithium. PLS, being a significant lithium and tantalum producer, is poised to benefit from this surge in lithium prices. This trend signifies favorable market conditions for PLS, making it a strategic addition to our portfolio with strong growth potential.
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.