The Pilbara Minerals Ltd (ASX: PLS) share price is up by 2.14% to $1.91 in early trading on Thursday.
This follows a positive announcement from the company that commissioning has begun at its Ngungaju plant.
What did Pilbara Minerals announce?
The Pilbara Minerals share price is on the move following news that commissioning is now underway at the company’s Ngungaju Plant. This heralds the start of a staged ramp-up of this facility from care and maintenance.
The transaction occurred when lithium prices were at multi-year lows, resulting in Altura falling into administration.
In late June, the company announced its final investment decision to restart Ngungaju operations.
Since then, the company has successfully completed its construction and maintenance acceleration program to bring forward additional production to capitalise on the lithium boom.
Commissioning of the coarse production circuit is now underway. Pilbara Minerals expects production to increase to approximately 180,000 to 200,000 dry metric tonnes (dmt) from mid-2022 onward.
It is understood that additional production from Ngungaju will allow for sales in the emerging spot market for spodumene concentrate.
This will include sales made through the company’s own recently launched Battery Materials Exchange digital sales platform.
In addition, Pilbara Minerals also reaffirmed its FY22 production guidance across the entire Pilgangoora Project at 460,000 to 510,000 dmt.
Pilbara Minerals’ CEO Ken Brinsden said the commencement of commissioning as part of the staged ramp-up at Ngungaju represents “another significant and exciting milestone in the rapid growth of the Pilgangoora Project”.
“Together with the improvement works being made to the Pilgan Plant (which are expected to soon increase production capacity from ~330ktpa to 360-380ktpa), Pilbara Minerals is firmly on track to achieve its goal of increasing annual spodumene concentrate production to 560-580,000tpa by the middle of next year.”
“With market conditions remaining extremely buoyant and the spodumene concentrate market continuing to show signs of being extremely short of supply, the Ngungaju Plant is expected to be capable of delivering uncommitted tonnes into the emerging spot market including through our BMX platform.
Pilbara Minerals share price snapshot
The Pilbara Minerals share price has lost steam in recent months, down almost 25% since mid-September.
It is currently lingering around 2-month lows, broadly in line with the S&P/ASX 200 Index (ASX: XJO).
Should you invest $1,000 in Pilbara Minerals right now?
Before you consider Pilbara Minerals, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pilbara Minerals wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
- Pilbara Minerals (ASX:PLS) share price flat despite resource upgrade and quarterly update
- Here are the 3 most heavily traded ASX 200 shares this Wednesday
- The Pilbara Minerals (ASX:PLS) share price surges on resource upgrade
- These 3 ASX 200 shares are topping the volume charts this Tuesday
- Why is the Pilbara Minerals (ASX:PLS) share price down 10% in a week?
Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3FqTETp