Recent spot sales from existing producers point to an improving near-term price outlook. Spot prices remain depressed, however, with recent sales over US$800/t, we see a pathway for a recovery in prices over the remainder of 2024. Rising Chinese owned supply has weighed on sentiment in the lithium sector, and we have reduced our medium-term price peak assumptions to reflect higher supply levels than we previously anticipated. The impact on our earnings outlook for PMT is minimal as we expect Shaakichiuwaanaan to commence production in FY30 and our long-term spodumene price of US$1,800/t is unchanged. The expected improvement in spot prices underpins 10% and 14% upgrades to our ASX and TSX price targets to A$1.10 and C$10.30 and we reiterate our SPEC BUY on PMT/PMET.
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