The company has completed the institutional proportion of its $91.5m capital raising. The second portion is a strategic investment from CATL, a Chinese-based global manufacturer of electric vehicles and energy storage batteries.
Macquarie resumes coverage with an Outperform rating and $0.60 target and believes the funding will go a long way to shoring up the company’s working capital during the ramp up of Pilgangoora.
Furthermore, the broker expects the large, high-quality resource and processing infrastructure will provide expansion options that will deliver value.
Target price is $0.60.Current Price is $0.36. Difference: $0.24 – (brackets indicate current price is over target). If PLS meets the Macquarie target it will return approximately 40% (excluding dividends, fees and charges – negative figures indicate an expected loss).