Insights

Pilbara Minerals (ASX:PLS) share price is sinking, still up 140% this year

Shares in the lithium player are on the down today, but zooming out shows a different picture.
The post Pilbara Minerals (ASX:PLS) share price is sinking, still up 140% this year appeared first on The Motley Fool Australia. –

The Pilbara Minerals Ltd (ASX: PLS) share price has dipped 7.24% into the red during trade on Friday. The dip comes on the back of a 37% gain over the last month.

In fact, whereas the S&P/ASX 200 Index (ASX: XJO) has climbed around 14% since 1 January, the Pilbara Minerals share price has climbed 136% this year to date.

Let’s go over the tailwinds that have propped up Pilbara shares this year.

The year so far for Pilbara Minerals

The Pilbara Minerals share price came into the year with a large run-up on the charts from October 2020 to 21 January 2021.

Pilbara shares ran into volatility early in the year after the company reported its half-year results on 19 February.

The company had grown revenue 56.5% year over year, underscored by a huge uplift in spodumene concentrate shipments.

However, Pilbara didn’t recognise this huge lift directly in its revenue due to pricing weakness “that remained weak during the half year… across the entire supply chain”.

Consequently, the company posted a loss of $21.2 million for the half.

Following on from this, Pilbara launched its digital sales platform in March, which sent its shares walking into the green.

The Battery Material Exchange (BMX) is designed to sell Pilbara’s unallocated spodumene concentrate inventory. The company forecasts an additional sales benefit from the launch of this platform.

What about from May onwards?

Although these progress points add to Pilbara’s growth narrative, it was from May where its shareholders have enjoyed the most gains.

It was in May when the company detailed a series of price-sensitive announcements that momentum started.

To illustrate, the Pilbara share price soared on “exceptional drilling results” at its Pilgangoora Lithium-Tantalum project in Western Australia on 10 May.

Next, it announced a joint venture with Calix Ltd (ASX: CXL) to develop a midstream lithium chemicals refinery. The pair are running a scoping study that is due to finish later this year.

Moreover, how could we forget the net effect of such hot running lithium markets. Lithium spot prices made their run from “multi-year lows to multi-year highs” this year, despite drawdown periods.

As a result, Lithium spot prices have propped both ASX-listed lithium miners and explorers this year to date. Pilbara is no exception.

In addition, July was busy for Pilbara, where it reported record spodumene concentrate shipments in its fourth-quarter update.

It also recognised better pricing versus the previous quarter, which all came through to record spodumene concentrate sales of 109,190 dmt. And the Ngungaju Plant was approved to restart around the beginning of July.

Consequently, the Pilbara Minerals share price has rallied from $1.455 to $2.05 today, a 41% climb.

Finally, the company gave results its inaugural BMX auction in July, which saw Pilbara shares gain 8% on the day as its share price recommenced trading.

Pilbara Minerals share price snapshot

The Pilbara Minerals share price has posted a return of 567% over the past 12 months. This outpaces the broad index’s return of around 25% over the last year.

In addition, Pilbara shares have dipped into the red over the past week, sliding around 14%.

The post Pilbara Minerals (ASX:PLS) share price is sinking, still up 140% this year appeared first on The Motley Fool Australia.

Should you invest $1,000 in Pilbara Minerals right now?

Before you consider Pilbara Minerals, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pilbara Minerals wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

What’s going on with ASX lithium shares today?

Here are 3 of the heaviest trading ASX 200 shares this Thursday

Will the ASX 200 follow the S&P 500 to double its March 2020 lows?

Which shares topped ASX 200 (ASX:XJO) trading volumes on Wednesday

Why the Pilbara Minerals (ASX:PLS) share price tumbled 12% in the last week

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!