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Highlights:
- Pilbara Minerals’ shares have been trading strong so far this week on ASX.
- While yesterday the stock surged upto 12%, it gained almost 4% during the initial trading hour on ASX today (5 October 2022).
S&P/ASX 200 company, Pilbara Minerals Limited (ASX:PLS) shares were trading 3.913% higher at AU$5.310 as of 10:12 AM AEDT on ASX today (5 October 2022).
Meanwhile, at 11:00 AM AEDT, the benchmark index S&P/ASX 200 was spotted 1.3% higher at 6791.6 points. 10 of the 11 sectors were in the green zone along with S&P/ASX 200 index and the broader sector, Materials was quoted 1.16% up around the same time.
Things to know about Pilbara Minerals
Pilbara Minerals is one of ASX-listed pure-play lithium producers. The company claims to own the biggest independent hard-rock lithium operations in the world. The Pilgangoora project, company's flagship endeavour, creates tantalite and spodumene concentrate of the highest calibre in Western Australia's Pilbara area. Pilbara Minerals wants to be recognised as the world's leading supplier of lithium that is both affordable and sustainable, according to its website.
What is boosting Pilbara Minerals’ share price?
The significant increase in this pureplay lithium company’s share prices could be positively affected by its spodumene concentrate auction announcement. On 20 September 2022, Pilbara Minerals disclosed the results of its most recent spodumene concentrate auction. The auction was organised by Battery Material Exchange (BMX), the digital trading platform of Pilbara Minerals.
As per the company’s announcement on ASX, BMX was utilised as a digital platform for Pilbara Minerals to put up a cargo of 5,000DMT target grade 5.5% lithia for sale. Delivery was scheduled to begin in mid-October 2022. A wide spectrum of qualified buyers expressed strong interest in both participating and bidding, resulting in 22 online bids throughout the 30-minute auction window.
Apart from this latest announcement, there are a few more notable factors impacting the share prices of ASX: PLS, such as:
- Pilbara Minerals released its FY2022 financial reports on 22 August 2022. The company confirmed a huge spike in demand for lithium raw materials. As per the FY22 report, the dry metric tonnes of spodumene concentrate produced increased from 281.1kt to 377,902 DMT, while the amount transported increased from 281.4kt to 362,035 DMT.
- The sales revenue of Pilbara Minerals rose 577% from the previous year to AU$1.2 billion as a result of the above-mentioned increased market demand. The company reported sales revenue of AU$175.8 million for FY2021.
- The company recorded a statutory net profit after tax of AU$561.8 million and positive EBITDA of AU$814.5 million as per its FY22 financial report.
- Lastly, Pilbara Minerals disclosed having a cash balance of AU$874.2 million as of 30 June 2022, in which there is a cash balance of AU$591.7 million and AU$282.4 million of irrevocable bank letters of credit.
