The Pilbara Minerals Ltd (ASX: PLS) share price touched an all-time high on Tuesday morning. This comes after the lithium miner provided investors with an announcement about its senior debt facilities.
Earlier today, Pilbara Minerals shares hit a new high of $2.55. Currently, they are up 1.41% to $2.51 apiece. In the past month alone, its shares have risen by more than 20%.
What did Pilbara Minerals update the ASX with?
Investors appear pleased with the company’s latest news, sending the Pilbara Minerals share price higher today.
In its release, Pilbara Minerals advised it has reached an agreement with its existing lenders to increase its senior debt facilities.
This will see the company expand its finance facility to US$130 million, and its undrawn working capital facility to US$25 million. The total secured debt facility limit increased by US$30 million to US$155 million.
Most of the additional funds will go towards a staged restart of the Ngungaju plant at Pilbara’s operations in Western Australia.
Once fully recommissioned, the plant will have a spodumene production capacity of 180,000 to 200,000 dry metric tonnes by mid-2022.
The company is aiming for the Ngungaju plant to produce 580,000 dry metric tonnes per annum when at full capacity.
The term of the working capital facility has been extended to November 2023. The maturity of the finance facility remains unchanged at 30 June 2025.
Commenting on the news possibly pushing up the Pilbara Minerals share price today, managing director Ken Brinsden said:
We are pleased to have expanded our existing facilities with our supportive lending group with the increase of US$30M sufficient to underpin the restart of the Ngungaju plant in a cost-effective manner.
The increased facility limit is another demonstration of the strength of our business, the quality of our asset, and follows an extraordinary year of growth and transformation for Pilbara Minerals.
Pilbara Minerals share price snapshot
Over the past 12 months, the Pilbara Minerals share price has accelerated by almost 300%. It’s also up by 190% year to date. However, it wasn’t until late July the company’s shares began taking off to record highs.
At its current share price, Pilbara Minerals commands a market capitalisation of roughly $7.37 billion.
The post Here’s why the Pilbara Minerals (ASX:PLS) share price hit a record high today appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras 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.
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