Why is the Pilbara Minerals share price having such a strong end to the week?

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

The Pilbara Minerals Ltd (ASX: PLS) share price had a good end to the week, lifting 3.61% to close on Friday at $2.87%.

This ASX lithium share has seen a lot of volatility in the last few weeks and months.

However, investors in the miner may have a reason to smile after the business provided an optimistic presentation at the Diggers & Dealers Mining Forum.

In the presentation, the company said it had enjoyed an amazing growth journey with more to come.

Highlights recap

A key factor that affects the performance of commodity companies is the price of the resource.

Pilbara Minerals advised that lithium pricing remained “strong”. The ASX lithium share said this placed the business in a “prime position” to capitalise on current market conditions, including selling spodumene concentrate from the Ngungaju Plant.

The company noted that the lithium deficit was expected to grow and, by 2040, might be the equivalent of around 18 Pilgangooras.

Pilbara Minerals is benefiting from the strong pricing, and this is helping build its cash balance. It had a cash balance of $874.2 million on 30 June 2022.

A key part of the company’s strategy is value-added products that can help increase its margin. It is positioned to capture value throughout the entire lithium raw material and chemical supply chain. That includes spodumene, lithium salts and lithium fine chemicals.

Pilbara Minerals share price snapshot

Over the past month, the Pilbara Minerals share price has risen by 32%.

The post Why is the Pilbara Minerals share price having such a strong end to the week? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Tristan Harrison 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/zfikhjW

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s