Pilbara Minerals Ltd (ASX:PLS) (OTCMKTS:PILBF) shipped a record 70,609 dry metric tonnes (dmt) of spodumene concentrate from the Pilgangoora Lithium-Tantalum Project in Western Australia to offtake partners during the December quarter of 2020.
This represents a 38% increase on shipments over the previous quarter’s export of 43,630 dmt and is well above the previous shipment record of 46,682 dmt recorded by the company in the December quarter of 2018.
The total also exceeded sales guidance for the quarter, which projected shipments from the Pilbara region project in the range of 55,000 to 70,000 dmt.
“Upward trend evident”
Pilbara managing director and CEO Ken Brinsden said: “What a great way to start the New Year with record tonnes shipped from Pilgangoora to support increasing customer demand and an upward trend evident in the price for lithium chemicals in China, showing positive signs of a recovery in the lithium raw material market.
“The significant amount of work we have undertaken over the past 18-months in improving lithia recoveries, reducing operating costs and refinancing our senior debt facility, together with the impending acquisition of the neighbouring Altura Lithium Project, means Pilbara Minerals is well-positioned to respond to a recovery in the lithium market and capitalise on improvements in market conditions.”
Improvement in demand
The company believes that an improvement in spodumene concentrate demand is evident from within Pilbara Minerals’ existing offtake customer group and from other enquiries.
There has been a material uplift in lithium chemicals pricing within China, with Platts Battery Grade lithium carbonate pricing up 35% to date from a low touched in August 2020.
PLS shares hit a new three-year high of A$1.015 today, which was almost 9% higher than yesterday’s close, while the market cap sits at approximately A$2.551 billion.
Raising A$121 million
The company is conducting a retail entitlement offer priced at A$0.36 per share which forms part of a fully underwritten 1-for-7.6 accelerated non-renounceable pro-rata entitlement offer to raise approximately A$121 million.
This retail entitlement offer will close on Monday, January 11, at 5pm (AEDT).