Pilbara Minerals Declared Commercial Production at its Pilgangoora Project and Commenced a Partnering Process

  • Mar 28, 2019 AEDT
  • Team Kalkine
Pilbara Minerals Declared Commercial Production at its Pilgangoora Project and Commenced a Partnering Process

Australian lithium and tantalum producer, Pilbara Minerals Limited (ASX: PLS) has taken a significant step in the development of the world-class lithium raw materials production by declaring commercial production at its Pilgangoora Lithium-Tantalum Project, effective from 1 April 2019.

This announcement of commercial production came after six months of material production and sales marks with sustained performance across Production, Feed-rate, Product Quality and Recovery.

Till now in FY 2019, the company has produced more than 111,199 dry metric tonnes (dmt) of saleable product, and it is expecting 47,000 – 52,000 dmt of spodumene concentrate in the March quarter.  The company completed its maiden shipment in October 2018 and till now in FY 2019 it has completed seven shipments of spodumene concentrate, representing sales of 95,270 wet metric tonnes (wmt).

With further optimization of the process plant, the company is expecting further improvement to be made across all performance metrics and it has progressed a series of defined improvement projects which will further improve process plant performance.  The estimated cost of the improvement projects is not expected to be material to the overall cost of the plant.

In another announcement on ASX, the company announced that it has commenced a partnering process to interconnect uncommitted Stage 3 Pilgangoora offtake with future JV chemical conversion facilities which will support the company in funding of both the Stage 2 expansion of Pilgangoora and the proposed Stage 3 development. Further, this process will also support growth in the Company’s downstream initiatives.

With the proposed Stage 3 project which is having a potential to increase the Pilgangoora’s processing capacity to 7.5Mtpa, this partnering process is representing a key part of Pilbara Minerals’ long-term strategy to unlock the full value of the Pilgangoora deposit.

The company is also considering the sale of a minority interest of between 20% to 49% in its world-class Pilgangoora Lithium-Tantalum Project and in today’s announcement it has confirmed that it has received interest from third parties with regards to the project ownership and product offtake at Pilgangoora. Pilgangoora is a very important asset for the company and with the increasing demand of lithium in electric vehicle and energy storage markets, it is expected that this project will play a major role in catering the demand of electric vehicle and energy storage markets.

The Company recently completed an updated Scoping Study on the potential for a second 30-60ktpa lithium hydroxide conversion facility and it is expected that this partnering process will explore the potential to jointly progress further studies on this lithium facility.

On the stock performance front, the share price of the company decreased by 20.90% as on 27 March 2019. PLS’s shares are trading at $0.722 (+3.143% intraday) with a market capitalization of circa $1.28 billion as on 28 March 2019 (AEST 1:00 PM). It has a 52 weeks high of $1.125 and 52 weeks low of $0.570.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK