Shares of Australian lithium producer Pilbara Minerals Limited [ASX:PLS] have risen by 3.53% in today’s trading. This jump follows several reports released today revealing that the company is on track with their first spodumene concrete shipment and strong production results.
At time of writing Pilbara Minerals shares are trading at 79 cents apiece with a market cap of $1.33 billion.
What do the reports say?
According to a pair of reports released by the company this morning, Pilbara Minerals ‘…continues to deliver outstanding plant performance with exceptional product quality achieved’. The company appears to be doing well and is reporting ‘strong progress with the production ramp-up’. It is clear to see that Pilbara Minerals is experiencing ongoing growth within multiple sectors of the company, especially in regards to its 100%-owned Pilgangoora Lithium–Tantalum Project in Western Australia.
The company also reports ‘…plant run-rates have continued to increase’ as are production rates, both promising pieces of news for shareholders.
What’s next for Pilbara Minerals?
With positive production results being released from the company, Pilbara Minerals seems to be well on track with its 2018 goals. The reason for lithium’s popularity being on the rise is due to an increased demand in batteries needed for things such as electric vehicles. As reported by the ABC:
‘The lithium ion battery has actually been around for decades, but the worldwide shift towards smart phones, electric bicycles, cars and household solar storage is driving up demand.’
The rise in popularity of the above items ensures lithium is in demand and could continue to be for years to come. This is good news for lithium producers like Pilbara Minerals.
Editor, Money Morning
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