Pilbara Minerals Limited (ASX: PLS) is under the metals and mining sector. It operates mainly in Lithium, exploration of Tantalum and developments of mine. The company was incorporated in the year 2005 and is based out of Australia. Pilgangoora Lithium-Tantalite Project, which is owned by Pilbara Minerals.
The company came up with the announcement of its project in Pilgangoora containing Lithium and Tantalum. The project is fully owned by the company with a mining life 23 years. The project has an established transport and port infrastructure with 2MTPA processing plant in stage 1.
The project has exceptional growth opportunity with three stages. Stage 1 has a capacity of 1.2 MTPA with stage 2 and three capacity of 5 MTPA and up-to 7.5 MTPA respectively. The process plant throughput performance continues to exceed expectations during production ramp-up, achieving a consistent run rate of 270 tph. A total of 58,000 dry metric tonnes of spodumene concentrate were produced a year to date. The processing plant delivers high-quality product during commissioning and production ramp-up.
Lithia recovery continues to improve during processing plant ramp-up to name-plate capacity, with additional capital optimizations to improve water quality management. Post commissioning, the company focus turns into lithia recovery improvements. It focuses on maximizing recovery with minimizing plant downtime. Overall production capacity is up to approximately 85.0% of the plant’s stage 1 design capacity.
The customer financing supports the funding package of $231 million expansion of the stage 2-project. Including US$25 million pre-payment from Great Wall Motor Company, A$50 million equity placement to Ganfeng Lithium, proposed new US$50 million Nordic Bond to be issued in accordance with the terms and conditions of the Company’s existing Nordic Bond, Existing cash, and Future cash-flow generated from operations in stage 1.
Lithium hydroxide will become the sought-after product for battery manufacturers presenting a significant opportunity for hard rock lithium projects. Korea is expected to be a significant player in the global battery supply chain with 25% of worldwide capacity by 2028. The company is positioned to downstream supply chain through the production of hydroxide.
The proposed joint venture between Pilbara minerals and POSCO consists of future participation in the rapidly developing Korean lithium-ion battery market, which has been proposed through a jointly owned lithium chemicals plant.
Now let us quickly have a look at the Pilbara Minerals Limited’s stock performance and the return it has posted over the last few months. The stock is currently trading at a price of $0.710 and increased by almost 2.158% approximately during the day’s trade, with a market capitalization of ~$1.21 billion. The stock opened at $0.700 with its day high of $0.715 and a day’s low price of $0.695. The stock has yielded a negative YTD return of 4.14% and posted negative returns of 32.20%, 12.58% and 7.95% over the last six months, three months and one-month period respectively. It has a 52-week high price of $1.20 and a 52-week low of $0.570, with an average volume of ~6.62 million approximately.
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