Pilbara Minerals Limited (ASX: PLS)

PLS Details

Production of the first concentrate at Pilgangoora- Pilbara Minerals is an emerging lithium and tantalum producer focused on the development of its world-class 100 per cent owned Pilgangoora Lithium-Tantalum Project, located about 120kms from Port Hedland in the Pilbara region of Western Australia. The main focus of Pilbara is to fast-track Pilgangoora towards production to capitalise on the widely anticipated shortfall of lithium in global markets over the next decade, with the project currently targeting commissioning in the June 2018 quarter. Lately, the Company confirmed that it has produced the first concentrates at its 100 per cent owned Pilgangoora Lithium-Tantalum Project in WA. This was a successful production and was a significant commissioning milestone that Company has achieved which marked the start of the Company’s transformation from developer to become a pre-eminent global lithium and tantalum raw materials producer.


Fines Spodumene Concentrate Discharged from the Filter Press at the Pilgangoora Project (Source: Company Reports)

The incredible scale of the resource, its ability to continue to expand production, the quality of its products and the expected low-cost of operations are the reasons because of which Pilgangoora is one of the world’s leading lithium production and development projects. It is expected that in the coming weeks, all remaining construction activities will be completed with further commissioning and testing. The Company targets to deliver its first shipment of spodumene concentrate in August of this year. It is in the process of working through the remaining logistics, shipment and payment details that are consistent with its Stage 1 off-take agreements with its partners Ganfeng and General Lithium. Moreover, Direct Shipping Ore (DSO) mining is currently well ahead of the shipment program. Recently, the South Korean POSCO has signed a partnership deal to buy lithium from Australia based Pilbara Mineral Limited and set up a downstream processing joint venture (DSJV) in South Korea. Meanwhile, the share price soared up 146.58 per cent in the past one year as at 20 June 2018 but declined by 4.26 per cent in past one month. Hence, we maintain our “Hold” recommendation on the stock at the current market price of $ 0.905 by looking at the Group’s early results in plant commissioning and progress on subsequent ramp-up of the Pilgangoora Concentrator.
 

PLS Daily Chart (Source: Thomson Reuters)

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