Pilbara Minerals Share Price with Small Uptick on Debt Deal (ASX:PLS)

At time of writing, the share price of Pilbara Minerals Ltd [ASX:PLS] is up 1.47%, trading at 34.5 cents.

The PLS share price climbed strongly off of the March market lows but after puncturing 40 cents, is starting to fall away.

You can see some important levels below:

ASX PLS Share Price Chart - Pilbara Minerals

Source: tradingview.com

PLS recently announced changes to its debt structure.

Lower rate on PLS debt a win

PLS effectively swapped one debt obligation for another.

The prior Nordic bond will be replaced with a deal with BNP Paribas and the Clean Energy Finance Corporation.

The Nordic bond was for US$100 million and the new finance facility is for US$110 million.

As per the announcement:

Substantial cost savings are expected from the Finance Facility when compared to the Nordic Bond, with an average interest rate of ~5% based on current market reference rates. It will also deliver Pilbara Minerals with an extended grace period before quarterly principal repayments commence in September 2022.

So a win for PLS as lithium prices remain depressed.

What’s new in the lithium market? PLS outlook

The short answer is not too much.

That being said, EV sales in Europe are holding up better in the pandemic than their combustion engine peers.

Which is remarkable given the low prices of oil.

You can read Ryan Clarkson-Ledward’s thoughts on the ‘Green Wave’ here.

And you can find more about the resources, which could benefit from it here.

It will be fascinating to see how things progress for the PLS share price, and it is conceivable that March might have been the worst of it for shareholders.

You can get our 2020 lithium report right here, too.

Regards,

Lachlann Tierney

For Money Morning


Lachlann Tierney is an Analyst for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely. Recently he has been working with Ryan Dinse. Lachlann is involved in two publications:


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