Pilbara Minerals share price climbs as lithium prices surge

How did Pilbara Minerals perform in the March quarter?
The post Pilbara Minerals share price climbs as lithium prices surge appeared first on The Motley Fool Australia. –

The Pilbara Minerals Ltd (ASX: PLS) share price is in the green today on the back of the company’s quarterly results.

The ASX lithium producer’s share price is currently $2.70, a 3.65% gain. In contrast, the S&P/ASX 200 Index (ASX: XJO) is up 1% today.

Let’s take a look at what Pilbara Minerals has told the market.

Pilbara Minerals share price jumps on quarterly results

Highlights included:

Cash balance of $284.9 million, a 16% increase on the previous quarter
Production of 81,431 dry metric tonnes of spodumene concentrate (dmt), down 2%
Spodumene concentrate shipments of 58,383 dmt, down 25.8%
Average spodumene price of US$2,650/dmt.

What else happened during the quarter?

The Pilgan operations contributed to an operating cash flow of $113.9 million due to “positive pricing dynamics”. The company received $169.2 million in customer sales from production at the Pilgan plant with $37.9 million spent on capital activities and $25.1 million repaying a syndicated finance facility.

Pilbara reported lithium prices surged in the March quarter, reaching new record highs. Battery grade lithium carbonate averaged US$76,700 a tonne in March, a 95% increase year to date. In fact, in March 2021, lithium carbonate was trading at just US$13,400 a tonne.

Production volumes were slightly down on the previous quarter due to COVID-19 impacting staff, as well as the tight labour market in general.

A port delay loading a 20,000 dmt cargo had a negative impact on shipments.

The cash balance was also impacted by a debt repayment of $25.1 million and the shipment delay.

The spodumene price is in line with the company’s prior guidance of US$2,600–$3,000 per dmt.

Pilbara also advised it completed its fourth Battery Material Exchange (BMX) auction after the market close yesterday. The company said it will accept the highest bid of US$5,650 per dmt for a 5,000 dmt cargo.

What’s next?

Company managing director and CEO Ken Brinsden will step down by the end of the year. Recruitment agency Derwent is conducting an extensive search for a new CEO. An announcement might be made in the third quarter.

Pilbara has maintained an FY22 production guidance of 340,000–380,000 dmt. However, the company warns that production could be in the lower half of the guidance due to potentially ongoing COVID-19 impacts.

Pilbara Minerals share price snapshot

The Pilbara Minerals share price has surged 134% in the past 12 months. It has lost 23% year to date. Over the past five trading days, the company’s shares have fallen 6%.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned around 4% over the past year.

Pilbara Minerals has a market capitalisation of about $8 billion based on the current share price.

The post Pilbara Minerals share price climbs as lithium prices surge 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 over 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 January 13th 2022

More reading

ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates

Here are the 3 most heavily traded ASX 200 shares on Wednesday

Here are the 3 most heavily traded ASX 200 shares on Tuesday

2 rapidly growing ASX shares that are on sale: experts

Why is it such a mixed day of trade for ASX lithium stocks?

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.

  • This field is for validation purposes and should be left unchanged.

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 - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!