Overnight, the lithium market monster, Pilbara Minerals announced the results of their 9th Battery Materials Exchange (BMX) auction where they received a record sales price for their spodumene on the spot market.
Pilbara Minerals sold 5000dmt after receiving 22 bids in a 30-minute window for ~$US7,708 per tonne which is a record compared to the current contract prices of approximately $5000 per tonne. This one particular sale will see Pilbara receive over 50 million dollars in cash but also identifies the massive demand for lithium globally and acts as a great price indicator going forward.
Outside of the BMX auction, Pilbara Minerals has over $850 million in cash and has quite little leverage. They are currently producing over 500,000 metric tonnes in the calendar year plus their new P680 project.
This P680 project will only cost approximately $260 million in order to uplift their production nameplate capacity to 680,000 metric tonnes per year. The evolution of the project will increase revenue for Pilbara by almost a billion dollars in just one year.
Previous CEO Ken Bridsen stated:
“Once we get up, we will be able to account for the equivalent of about 20 percent of the market as it stands now, as long as we can keep our costs low, we've got a good shot.”
Since Stock Specialist has recommended Pilbara Minerals, our members have seen over 150% returns on one recommendation.