The Pilbara Minerals Ltd (ASX: PLS) share price is trading lower on Wednesday.
In late morning trade, the lithium minerâs shares are down 1.5% to $4.32.
Why is the Pilbara Minerals share price falling?
The Pilbara Minerals share price is in the red today after broad market weakness offset the release of a positive announcement.
That announcement reveals that finance agreements have been executed for the A$250 million long-term debt facility with Australian Government agencies Export Finance Australia and Northern Australia Infrastructure Facility.
In addition, Pilbara Minerals has taken the opportunity to refinance its existing US dollar secured syndicated debt facility on improved terms.
What will the funds be used for?
Management notes that collectively, these new debt facilities support Pilbara Mineralsâ strategy to expand, grow, and diversify its business further down the battery materials supply chain.
The debt facility being provided by the Government Agencies will support the construction of the P680 Project expansion at the Pilgan Plant and a new 5Mtpa integrated crushing and ore sorting facility.
The former will deliver an additional 100,000tpa of spodumene concentrate production, whereas the latter will support future expansions that could ultimately deliver up to 1Mtpa of spodumene concentrate capacity across the Pilgangoora Project.
Pilbara Mineralsâ CEO, Dale Henderson, commented:
We are extremely pleased to have once again received strong financial support from the Australian Government and our commercial lending partners. The continued support from the Australian Government is a significant endorsement of Pilbara Mineralsâ assets and operations, recognising their strategic significance in the global battery materials supply chain.
With the completion of these new finance facilities, Pilbara Minerals is now incredibly well positioned to pursue our long-term growth and diversification ambitions to become a fully integrated lithium raw materials and chemicals supplier â and to play a pivotal role as a battery materials supplier for many decades to come.
The post Pilbara Minerals share price dips despite cash injection appeared first on The Motley Fool Australia.
Should you invest $1,000 in Pilbara Minerals Limited right now?
Before you consider Pilbara Minerals Limited, 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 Limited wasn’t one of them.
The online investing service heâs run for over 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.
See The 5 Stocks
*Returns as of February 1 2023
(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
- Here’s the latest ‘bearish news’ from brokers on ASX 200 lithium stocks
- Here are the top 10 ASX 200 shares today
- Why are ASX 200 lithium shares having such a stellar run today?
- Here are the 3 most heavily traded ASX 200 shares on Tuesday
- Why is the Core Lithium share price rebounding 5% on Tuesday?
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.
from The Motley Fool Australia https://ift.tt/khomuqy
Stock Pick 