Pinned straw:
secondtake88
Interestingly, Morningstar's current $42 fair value would be $54 if they did not expect the lithium prices to 'revert to maintainable levels of $USD 15,000 per metric ton'.
So whereas Min Res had a 'lithium not in the price' situation, for WES I think its more a 'risk of spot price reverting' discount.
Regardless, they forecast EPS tracking a little north this FY and ROIC stepping up from 16% to about 23%.
My 4th largest holding IRL.
edgescape
A few archived slides from Kidman Resources
So 5.5% concentrate which is the industry average requirement. MinRes Lithium is 6%
edgescape
Should also factor in that ownership is split 50:50 between SQM and WES
Also not close to main roads. I think this was what was holding up the development which was mentioned by someone here. That distance to Perth looks like about 600km.
There is gold there though. Whether it will be mined is another story. My original investment thesis for buying Kidman before the takeover was the Gold project at that time.
I don't know the geology of the project. But with SQM as JV it should be fine.
As an aside, someone here was hoping for a meaningful correction in Wesfarmers.
Well I just bought an office desk and chair from Officeworks and both are pretty good. Doesn't look like we'll get that correction soon :)