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Highlights
- Pilbara’s shares were found trading at AU$5.06 each, down 0.78%, on the ASX today at 3.20 PM AEDT.
- The fall in share prices might be because of the dip in overall Materials sector.
- The ASX 200 Materials index was 2.68% lower, at 15,385 points, at 3.21 PM AEDT.
The shares of ASX-listed Pilbara Minerals Limited (ASX:PLS) were spotted trading in the red territory today (3 November) and at 3.20 PM AEDT, the company's shares were found trading at AU$5.06 each, down 0.78%, on the ASX..
However, this outperformed the ASX 200 Materials index, which was 2.68% lower at 15,385 points at 3.21 PM AEDT. Sectorally, too, Materials is the worst performing sector today among the 11 sectors.
Why are Pilbara's shares trading in red?
Pilbara did not share any price-sensitive news today. The fall in share prices might be because of the overall Materials sector.
However, the company shared its September quarterly activity results last week (25 October).
Let's take a look at the quarterly report card of Pilbara
Production and sales
- Spodumene concentrate production reached 147,105 dmt, an increase of 16% from the 127,236 dmt produced in the June quarter of 2022.
- Shipments of 138,249 dmt of spodumene concentrate were made as opposed to 132,424 dmt in the June quarter of 2022.
- The nameplate capacity of 180–200,000 dmtpa was reached by the Ngungaju Plant.
- The sale of 45,041 dmt of "middlings" product – medium-grade concentrate that produced when the Ngungaju Plant was first put into service – was made.
- One million tonnes of spodumene concentrate was shipped.
- For the delivered spodumene concentrate, an average realised sales price of US$4,266/dmt SC5.3 basis was attained.
- Three Battery Material Exchange (BMX) sale auctions saw strong pricing, with one auction obtaining a realised price of US$7,708/dmt on an SC6.0 equivalent basis or US$6,988/dmt on an SC5.5 basis.
Corporate updates
The cash balance at the end of the quarter increased significantly, by AU$783.7 million, from the June quarter's AU$591.7 million to AU$1.375 billion. For shipments completed up to 30 September 2022, the cash balance, including irrevocable letters of credit (AU$132.2M), climbed to AU$1.508 billion.
Project development
Bulk earthworks have already started on the P680 Project, and contracts for long-lead items have been awarded. The 43,000 tpa LHM primary lithium hydroxide chemical processing facility in South Korea, which is being built in a joint venture with POSCO, has advanced thanks to the awarding of several significant contracts and the start of first site preparations.
Stock performance
Pilbara shares have fallen by around 1.17% in the last month; however, they have increased by over 92% in the previous six months. The company's shares have jumped more than 43% on a year-to-date basis.
