At time of writing, the share price of Pilbara Minerals Ltd [ASX:PLS] is down 4.58%, trading at 62.5 cents.
The Pilbara Minerals share price has been in a downward trend over the last 12 months:
The latest news out of the company is its quarterly results, which included updates on its processing plant and progress towards Stage 3 expansion.
Pilbara Minerals share price down despite improved output
Production rose by 9% to 52,196 dry metric tonnes of spodumene concentrate:
This increase was despite the disruption caused by tropical cyclone Veronica.
During the quarter the company also announced commercial production from 1 April 2019.
The company is now engaged in a ‘partnering process’ to achieve Stage 3 offtake.
Additionally the final decision on the proposed 30% joint venture with POSCO will come in the next quarter.
The company has $103.9 million cash in the bank as of 31 March 2019 and provided the following information about the current state of the lithium market which will be of interest those who invest in the sector:
Is the Pilbara Minerals share price cheap now?
At some point, you would think lithium prices will improve.
Based on the charts, it looks like the fall in prices seems to have slowed or levelled out.
Pilbara is well placed to take advantage of any increase in the lithium price as it produces a significant amount of the product.
If you were to buy Pilbara Minerals, though, it may take some time for share price gains to materialise.
So it really depends on your investment horizon.
It is also worth noting that as of 18 April 2019 the stock is shorted at a rate of 9.37%.
As a result, there may be more downside risk for this stock in the immediate future.
If you want to learn more about the lithium sector, we have an information packed free report available here.
For Money Morning