What is weighing on Pilbara Minerals (ASX:PLS) shares today?

October 18, 2022 04:11 PM AEDT | By Bhawna Gupta

What is weighing on Pilbara Minerals (ASX:PLS) shares today? — Image source: © Julielubick | Megapixl.com

What makes Pilbara shares trade higher today?

On Tuesday (October 18), Pilbara announced through an ASX filing that a pre-auction bid for a spodumene concentrate cargo was accepted by Pilbara. This was done ahead of its 10th scheduled digital auction on the Battery Material Exchange (BMX).

Before the proposed BMX auction, set for Tuesday, October 18, 2022, a shipment of 5,000dmt on a 5.5% lithia basis was made available for purchase to registered BMX participants.

The company has accepted a pre-auction offer of US$7,100/dmt (SC5.5, FOB Port Hedland base), with a 10% deposit due soon.

After considering freight expenses and lithia content on a pro rata basis, this offer of US$7,100/dmt translates to an approximate price of US$7,830/dmt on a SC6.0 CIF China equivalent basis. Delivery is scheduled to begin in mid-November.

A sales agreement between the buyer and the company stipulates that a valid, irrevocable letter of credit must be delivered by the end of October 2022.

Results of BMX auction

On 20 September 2022, Pilbara Minerals had released the results of its most recent spodumene concentrate auction that was conducted through its online Battery Material Exchange ("BMX") platform.

According to information provided by the firm in an ASX filing, delivery of a 5,000 dmt cargo with a target grade of roughly 5.5% lithia was scheduled to begin in mid-October 2022.

Stock performance: Pilbara's share prices have grown around 2% in the last month and more than 65% in the previous six months. The company's shares have climbed over 37% on a year-to-date basis and jumped around 127% in the last one year.

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