This lithium miner’s shares are tumbling on Tuesday…
The post Why is the Pilbara Minerals (ASX:PLS) share price crashing 10% lower today? appeared first on The Motley Fool Australia. –
The Pilbara Minerals Ltd (ASX: PLS) share price is having a day to forget.
At the time of writing, the lithium miner’s shares are down a sizeable 10% to $2.49.
Why is the Pilbara Minerals share price sinking today?
Investors have been selling down the Pilbara Minerals share price today after the lithium miner downgraded its December quarter and FY 2022 annual concentrate production and shipping guidance.
According to the release, delays have been experienced with both the Ngungaju Plant re-start and Pilgan Plant Improvements Project. These delays are being experienced with plant commissioning, ramp-up initiatives and extended plant shut-downs.
Furthermore, the company’s ability to operate and improve the Pilgan Plant and restart the Ngungaju operation have been impacted by the extended border closures. This is impacting the ability for Western Australian mining companies to access key personnel in construction, production and maintenance roles.
What is the impact?
In light of the above, Pilbara Minerals now expects to produce approximately 84kt to 95kt dmt of spodumene concentrate during the December 2021 quarter. This is down from its previous production guidance of 90kt 115kt dmt.
As for shipped tonnes, management feels this is likely to be lower than production pending the timing of vessel loading and departures at the end of the current quarter.
FY 2022 guidance
As for FY 2022, Pilbara Minerals’ annual concentrate production guidance has been downgraded to 400,000 to 450,000 dmt from 460,000 to 510,000 dmt. Whereas FY 2022 shipments are expected to be 380,000 to 440,000 dmt, down from 440,000 to 490,000 dmt.
Pilbara Minerals’ Managing Director, Ken Brinsden, said: “We have made excellent progress in the construction and initial commissioning of the expanded facilities at Pilgangoora, with construction of the Pilgan Improvements Project being delivered on time and on budget. That said, as we have started ramping up capacity across the entire Pilgangoora site, Pilbara Minerals has not been immune to the skilled labour shortages currently impacting the WA resource sector.”
“As a result of these impacts, which have delayed elements of our commissioning and ramp-up plans, we have updated production guidance for the December Quarter as well as for FY22. Notwithstanding this, Pilbara Minerals remains incredibly well-placed to make a significant contribution towards satisfying the world’s burgeoning appetite for lithium raw materials.”
“Recent price developments are underlining the emergence of significant raw material supply shortages and Pilbara Minerals is doing everything in its power to respond quickly to customer demand with additional production capacity, both in the short and medium term,” he added.
The Pilbara Minerals share price is still up over 180% since the start of the year despite today’s pullback.
The post Why is the Pilbara Minerals (ASX:PLS) share price crashing 10% lower today? appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position 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.