Shares in Pilbara Minerals Ltd (ASX: PLS) are lifting today following the release of a company announcement.
At the time of writing, the Pilbara Minerals share price is trading at $3.24 after spiking 18% in the last month of trade.
Next rung on the ‘mid-stream’ ladder?
Pilbara advised it has completed a scoping study as part of its “mid-stream value-added lithium growth strategy” alongside Calix Limited (ASX: CXL).
Lycopodium Minerals Ltd (ASX: LYL) actually conducted the study, that Pilbara says will give support to technical aspects of its Pilgangoora Operation in WA.
The study’s findings confirm the technical capability of Pilbara’s flowsheet, capable of producing lithium phosphate salt using flotation spodumene concentrate from Pilgangoora.
“The Scoping Study is the first economic evaluation of the Mid-Stream Project which has been prepared to an accuracy level of +/-40% (for Capital costs) and +/-30% (for Operating costs),” it remarked.
“It represents a preliminary study of the potential technical and economic viability of the proposed process path and demonstration scale facility development”.
The release also stated that all progress will move ahead as apart of a proposed joint venture with Calix, with more definitive studies to start that journey.
What’s next?
The company expects to complete a number of milestones by the end of 2022, particularly around joint-venture development and cost optimisation, it says.
This should take place in the form of more definitive and engineering studies, Pilbara notes, “to further assess the operating and capital costs for the Demonstration Plant.”
Each of these moves will guide both Pilbara and Calix to a final investment decision on the site, aiming to commercialise its mid-stream technology across the global industry.
If all goes according to plan, the plant’s construction could start as early as 2023, with completion penciled for Q1 CY2024, Pilbara says.
“Following completion of construction and commissioning, a period of process optimisation
would follow”.
In the last 12 months the Pilbara Minerals share price has soared over 209% and is now trading 4% higher for the week.
The post Here’s why the Pilbara Minerals (ASX:PLS) share price is spiking today appeared first on The Motley Fool Australia.
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Motley Fool contributor Zach Bristow 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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