Pilbara Minerals (ASX:PLS) shares trading higher today; here's why

2 min read | September 20, 2022 07:00 PM PDT | By Bhawna Gupta

Pilbara Minerals (ASX:PLS) shares trading higher today; here's why — Image source: © Julielubick | Megapixl.com

Why are Pilbara Minerals' shares trading higher today?

The rise in share price might be because of the ASX announcement made by the company on Tuesday (20 September). Pilbara Minerals disclosed the outcomes of its most recent spodumene concentrate auction, which was conducted using its online Battery Material Exchange (BMX) platform. According to the ASX filing, a wide spectrum of qualified purchasers expressed interest in participating and bidding, and 22 bids were placed online throughout the 30-minute auction session.

In the ASX filing, Pilbara Minerals said that it plans to accept the highest bid of US$6,988/DMT (SC5.5, FOB Port Hedland base), which, when adjusted to account for freight costs and lithia content, results in a price of about US$7,708/DMT.

The company further said that according to the conditions of the auction, the winning bidder must now sign a sales contract within 24 hours, with a 10% payment due by week's end and an irrevocable letter of credit from a reputable bank due by late September 2022.

Pilbara Minerals’ stock performance

During the last five trading sessions, Pilbara Minerals' shares rose 7.74% and around 58% in the previous month. However, the shares have jumped about 42% on a YTD basis (based on share price observed till 11.17 AM AEST, 21 September).

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