After 8 consecutive days in the green, this bullish lithium miner is closing in on record highs
The post The Pilbara (ASX:PLS) share price is up 20% in two weeks appeared first on The Motley Fool Australia. –
The Pilbara Minerals Ltd (ASX: PLS) share price has surged ~20% since last Tuesday.
This marks 8 consecutive green days for the bullish lithium miner. Today, the Pilbara Minerals share price has edged 0.39% higher to close at $1.30.
Why the sudden surge in the Pilbara share price?
Lithium prices edge higher
Lithium prices have continued to trend higher, with carbonate and hydroxide prices pushing more than 50% off November 2020 lows.
The latest update from Fastmarkets highlighted “lithium hydroxide price ex China edged higher on tight supply and robust buying appetite, while the lithium carbonate price softened”. Seaborne lithium prices were steady amid tight supply.
Positive investor strategy and outlook announcement
Pilbara released an in-depth strategy and outlook announcement on 11 May. Included in the presentation was the company’s plans to increase production to support growth in customer sales.
This will be achieved through the restart of the Altura Mining Ltd (ASX: AJM) mine, prospective partnerships to handle mid-stream products and downstream processing, and several initiatives to transition to renewable energy.
Broad based lithium rally
The Global X Lithium & Battery Tech ETF (NYSEARCA: LIT) invests in the “full lithium cycle, from mining and refining the metal, through battery production”. Its involvement in lithium from mining through to its end-users makes it a useful indicator for how the broader lithium sector is performing.
The Lithium ETF has been on a tear since 13 May, lifting 16% to a 4-month high. The uplift in the ETF broadly coincides with the resurgence in the Pilbara share price.
Within arm’s reach of record all-time highs
The Pilbara Minerals share price surged to a record all-time high of $1.465 on 22 January. After stalling throughout February and May, its shares have attempted to retest record highs in both late April and early May.
Having struggled to break out on both occasions, the Pilbara Minerals share price is closing in again on a chance to break above the clouds.