The Pilbara Minerals Ltd (ASX: PLS) share price will be on watch on Wednesday.
This follows the release of the lithium minerâs latest results from its battery material exchange (BMX) auction.
Pilbara Minerals share price on watch following BMX auction
As a reminder, Pilbara Mineralsâ BMX digital auction is held monthly and allows buyers to bid for 5,000 dry metric tonnes (dmt) of lithium with a target grade of ~5.5% lithia.
Many lithium watchers keep a close eye on this auction as it gives the market an idea of whatâs happening with lithium prices.
In July, Pilbara Minerals reported that it accepted the highest bid of US$6,188 per dmt for delivery in August.
It then experienced an increase in prices in August, receiving a winning bid of US$6,350 per dmt for delivery in September.
Whatâs the latest?
The good news for the Pilbara Minerals share price today is that the company’s latest BMX auction was a success.
According to the release, another cargo of 5,000 dmt at a target grade of ~5.5% lithia was presented for sale on the digital platform, with delivery expected from mid-October.
Management advised that strong interest was received in both participation and bidding by a broad range of qualified buyers with a total of 22 bids received online during the 30-minute auction window.
While the number of bids has fallen from 67 a month earlier, this hasnât stopped the company commanding a higher price. It advised that it intends to accept the highest bid of US$6,988 per dmt, which is an increase of 10% month on month.
On a pro rata basis for lithia content (and adjusted to be inclusive of freight costs), this equates to a price of ~US$7,708 per dmt (SC6.0, CIF China basis).
As with previous auctions, the company notes that the bidder is now required to enter a sales contract within 24 hours, pay a 10% deposit by the end of the week, and produce an irrevocable letter of credit from a recognised bank by late September.
The post Pilbara Minerals share price on watch following BMX lithium auction appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Wednesday
- Is this prediction great news for ASX lithium shares?
- Is this the new frontier for ASX lithium shares?
- Pilbara Minerals share price racks up ninth all-time high for September
- Up 50% in a month, does the Pilbara Minerals share price ‘reflect too much optimism’?
Motley Fool contributor James Mickleboro 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.
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