ASX listed lithium producer, Pilbara Minerals Limited today confirmed the final product quality of the spodumene concentrate which has been departed from Port Hedland on 2nd October 2018.
The company specified 6.256% lithia and 0.724% Fe2O3 grade shipment which confirms the significant quality of Pilgangoora product. As per the company’s information the quality was evaluated by an independent laboratory SGS which assessed the spodumene concentrate quality loaded onto the Pilbara Minerals’ charter vessel, the ‘M.V. Pola Devora’.
The charter vessel left Port Hedland port on 2nd October 2018 with a load of 8,800wmt of spodumene concentrate. It outlines the company’s first shipment of spodumene concentrate from the Pilgangoora project.
Pilbara Minerals’ Managing Director and CEO, Ken Brinsden stated that the departure of Pilbara’s first-ever spodumene concentrate shipment from Pilgangoora Lithium-Tantalum project marks a huge success in company’s history. He added that the delivery of Pilgangoora project from first-drill hole to the first product on ship within four years has elevated Pilbara Minerals to rank among the Australia’s mid-tier mining companies.
With this start, the company expects to have regular shipments in future as the company ramps up the Stage 1 to ‘nameplate’ full production capacity and plans to commence construction of Stage 2, 5Mtpa expansion, following a final investment decision which is expected around the completion of the third quarter of 2018.
Pilgangoora project is 100% company owned hard rock lithium-tantalum deposits. It is located approximately 120km from Port Headland in Pilbara region of Western Australia. The project is strongly supported by offtake partners including General Lithium, Ganfeng Lithium, Great Wall Motor Company and POSCO.
In August 2018, Pilbara Minerals released a Definitive Feasibility Study to increase the processing capacity of the Pilgangoora project from 2Mtpa to 5Mtpa, allowing it to produce up to 850,000tpa of 6% spodumene concentrate over a 17-year mine life.
Mr. Brinsden stated that the expansion of Pilgangoora project to 5Mtpa is expected to position Pilbara Minerals to rank among the top-three lithium producers in the world by 2020.
Let’s take a quick recap of its FY18 financial performance:
In the Annual Report 2018 Pilbara Minerals posted net loss of $19,415,000 for the period ended 30 June 2018 which was lower than the previous loss of $25,954,000 in FY17. Basic earnings per share was in negative 1.19 cents, compared to -2.11 cents per share in prior year.
No dividend for the period has been recognized or declared by the company.
During the year ending 30 June 2018 the Company sold the Tabba processing plant assets to Tungsten Mining NL for $0.30 million in cash and 7,500,000 ordinary shares in Tungsten Mining NL. As at 30 June 2018, there were no changes to the June 2017 Ore Reserve as a result of mining activities at the Pilgangoora project site. Cash in hand was $119.98 million at the end of the period, i.e. 30 June 2018.
Further, lithium demand is forecasted to grow fourfold between 2018 and 2025, which could accelerate more because of its widespread use in conventional industries such as ceramics, glass and pharmaceuticals is overtaken by the rapid growth in the lithium ion battery, portable electronics, electric vehicle and mass energy storage sectors.
The share price of Pilbara Minerals has surged up by 1.212% to $0.835 on 9 October 2018. The stock has seen a performance change of +7.84% over the past one year. However, in the last three months the stock has fallen by 16.67%.
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