Disappointing Trading for Pilbara Minerals

By ,

Pilbara Minerals Ltd [ASX:PLS] has seen a difficult few months. Today, we’re seeing their share price suffer — down at time of writing by 8.40%. This brings their share price to 54 cents.

The mining company has continued to report solid production from their projects; however, a weakening demand for their profit has forced them to cut back on their operations to salvage cash flow and working capital.

And it doesn’t look to be getting much brighter for the lithium miner, now set to be impacted further by a shutdown of a concentrator in late July.

FREE report: Why ‘Nano Metal’ could soon be Australia’s most valuable export.

Bad news continues for Pilbara Minerals

On Monday, Pilbara released their Pilgangoora Production and Sales Update. It revealed that the Lithium-Tantalum Project had produced a record 22,375 dry metric tonnes of spodumene concentrate in May. This was an estimate 85% of their planned Stage 1 capacity.

It appears that operations have been in line with expectations and resulted in consistent production growth ‘month-on-month to date’.

But while they report that battery-ready lithium chemicals have been in demand, sales have been ‘constrained’ due to the construction, commissioning and build-out of the offtake customer chemical conversion capacity in China.

Pilbara will be combatting this by moderating production during June and July, assessing RCR defects, completing further plant improvement works, as well as drawing down final product stocks.

Considering the last few months of Pilbara’s stock performance, it seems as though many investors have run for the hills. And it has, in turn, even brought down the prices of their competitors.

What does this news mean for investors?

Considering the weakness in lithium, it appears it might not be the best time to attain Pilbara stocks right now. In fact, it looks like they’re entering a winter.

The spodumene concentrate price has continued to decline, ranging from US$600–$640 per dry metric tonne.

However, this bad news doesn’t mean Pilbara is exempt from bouncing back, which is why we’ll be keeping a close eye on the miner and keeping you up to date with movements.


Ryan Clarkson-Ledward,
For Money Morning

PS: Disheartened by Pilbara, but still want to add some winning miners to your portfolio? Check out this FREE report compiled just for you, showing you what we believe are the Best Mining Stocks on the ASX today. Click here to download.

About Ryan Clarkson-Ledward

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor…

Pilbara Minerals: June Quarter Sees Lithium Production Rise

Lithium miner Pilbara Minerals Ltd [ASX:PLS] fell on Wednesday after releasing its June quarter production and sales update. Despite a significant increase in June quarter production, the lithium stock was trading down 2.5% in late afternoon trade. PLS was unable to buck the trend, with plenty of lithium stocks falling sharply on Wednesday. At the … Read More

Sayona [ASX:SYA] Shares Rise On New Lithium Discoveries at Moblan

Junior Lithium producer Sayona Mining [ASX:SYA] announced new lithium discoveries at its Moblan lithium project, ‘strengthening’ its potential.

Pilbara Minerals Pre-Auction Bid Reflects ‘Strong Demand’

Australian lithium producer Pilbara Minerals [ASX:PLS] secured a pre-auction bid of over US$7,000/dry metric tonne.

Lithium Stocks: Goldman Sachs versus the Public

In today’s Money Morning…a simple case of supply and demand…a battle of opinion…the lithium trend isn’t over…and more…

Pilbara Minerals [ASX:PLS] and Calix Shares Rise on $20M Grant

Pilbara Minerals [ASX:PLS] today announced the receipt of a $20 million grant alongside Calix Ltd [ASX:CXL].

Pilbara Minerals [ASX:PLS] Shares Rise on March Quarter Update

Lithium producer Pilbara Minerals [ASX:PLS] rose on Thursday after achieving production guidance despite COVID impacts.