WES are scheduled to provide interim results on 15 February 2024.

Given the dramatic fall in Spodumene and Lithium Hydroxide prices since the last update it was worth having a look at the valuation.

WES estimate 190,000t of Lithium Hydroxide production by FY26.

Estimate market value of LiOH in FY26 at $14,000/t (with $7,000/t production cost) infers eps from lithium at $0.15. This is a substational reduction from only 6 months ago.

Also, the increasing gas input costs to the CEF Division were flagged 6 months ago so expect this to negatively impact the upcoming results.

I wouldn't expect the retail division sales to compensate for the above headwinds in the current retail environment.

FY26 EPS = $2.32. With a PE of 26.7 Share Price FY26 = $61.90.

Current Valuation $46.50.

The current run in the WES share price could only be justified based on Lithium prices of 6 months ago.

The current share price appears to have run ahead of reality.

I'll go out on a limb and predict the upcoming results to disappoint the market.