• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Fat Tail Daily

Investment Ideas From the Edge of the Bell Curve

  • Menu
    • Commodities
      • Resources and Mining
      • Copper
      • Gold
      • Iron Ore
      • Lithium
      • Silver
      • Graphite
      • Rare Earths
    • Technology
      • AI
      • Bitcoin
      • Cryptocurrency
      • Energy
      • Financial Technology
      • Bio Technology
    • Market Analysis
      • Latest ASX News
      • Dividend Shares
      • ETFs
      • Stocks and Bonds
    • Macro
      • Australian Economy
      • Central Banks
      • World Markets
    • Small Caps
    • More
      • Investment Guides
      • Premium Research
      • Editors
      • About
      • Contact Us
  • Latest
  • Fat Tail Series
  • About Us
Market Analysis Latest ASX News

Pilbara Minerals (ASX:PLS): Lithium Auction Shows ‘Strong Interest’ Despite Dip

Like 0

By Kiryll Prakapenka, Friday, 15 July 2022

Lithium producer Pilbara Minerals [ASX:PLS] released the latest results from its BMX lithium auction, securing an implied price of US$6,841/dmt for its spodumene concentrate.

Lithium producer Pilbara Minerals [ASX:PLS] released the latest results from its BMX lithium auction, securing an implied price of US$6,841/dmt for its spodumene concentrate.

The digital auction was held via Pilbara’s Battery Material Exchange (BMX).

While the producer has been able to capitalise on a strong lithium market, the stock hasn’t been able to avoid the wider correction in the sector.

Year-to-date, PLS shares are down more than 20%.

ASX:PLS pilbara stock chart

Source: Tradingview.com

Pilbara’s latest BMX auction

PLS conducted another spodumene concentrate auction held via its digital BMX platform.

PLS was offering cargo of 5,000dmt at a target grade of ~5.5% lithia, with delivery expected from August 2022.

Pilbara said it received ‘strong interest in both participation and bidding by a broad range of qualified buyers’.

Pilbara received 41 bids during a 30-minute auction window.

The lithium producer said it will accept the highest bid of US$6,188/dmt (SC5.5, FOB Port Hedland basis).

On a pro rata basis for lithia content, this roughly equates to a price of US$6,841/dmt (SC6.0, CIF China basis).

5,000dmt at the targeted 5.5% lithia grading cargo has been scheduled for delivery by the end of August.

Pilbara indicated that it has every intention to accept this offer, in which case the bidder will then have 48 hours to complete their sales contract.

PLS will receive a 10% deposit and expects a letter of credit actionable by late July to seal the deal.

Pilbara’s latest auction sees modest price drop

In Pilbara’s previous BMX auction, the winning bid for Pilbara’s spodumene concentrate was more than US$7,000dmt.

Meaning this week’s auction’s bid came in about 2.5% lower.

Is this just short-term volatility or an indication of a faltering lithium price?

If lithium prices are levelling off, Pilbara can still offset this with rising production volume.

In June, PLS announced that FY22 annualised production is expected to be in the range of 373,000 to 377,000dmt, a 33% increase on FY21.

Now, 2021 was definitely the lithium sector’s year.

Eight of the top 10 best-performing stocks on the All Ords were lithium stocks.

But — as is often the case — mean reversion kicked in…not to mention souring market sentiment triggering selling of risk-on assets.

Lake Resources [ASX:LKE] is emblematic of the sell-off. LKE shares are down more than 70% from their all-time high reached in April.

So is the run over?

Or are there lithium stocks worthy of consideration?

While the easy money has been made in the lithium sector, you can still find quality stocks — but you have to be careful, diligent, and picky.

In our recent Money Morning report, we profiled three overlooked lithium stocks that are best-placed to enjoy the strong secular demand for the critical battery tech metal.

To read the free research, access it here.

Regards,

Kiryll Prakapenka,
For Money Morning

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Kiryll Prakapenka

Kiryll’s Premium Subscriptions

Publication logo
Fat Tail Investment Research

Latest Articles

  • Don’t Get Swept Up By the Herd: Bulls & Bears in an Age of Social Media
    By Charlie Ormond

    Markets have always reflected this chaotic behaviour, but today’s markets operate in an environment fundamentally transformed by social media.

  • The latest Closing Bell is available now
    By Callum Newman

    Tune in today to watch the latest Closing Bell podcast with Murray Dawes. We discuss gold, oil, real estate…plus a stock to watch. Tune in now!

  • Thorium: One Step Closer to China’s Energy Fortress
    By James Cooper

    Forget AI, the biggest breakthrough of this century will revolve around ENERGY. And the commercialisation of Thorium reactors could be at the heart. Read on to find out why China could be about to make history.

Primary Sidebar

Latest Articles

  • Don’t Get Swept Up By the Herd: Bulls & Bears in an Age of Social Media
  • The latest Closing Bell is available now
  • Thorium: One Step Closer to China’s Energy Fortress
  • The famous yield curve: buy or sell signal? You decide…
  • How Australians voted for a great wealth redistribution

Footer

Fat Tail Daily Logo
YouTube
Facebook
x (formally twitter)
LinkedIn

About

Investment ideas from the edge of the bell curve.

Go beyond conventional investing strategies with unique ideas and actionable opportunities. Our expert editors deliver conviction-led insights to guide your financial journey.

Quick Links

Subscribe

About

FAQ

Terms and Conditions

Financial Services Guide

Privacy Policy

Get in Touch

Contact Us

Email: support@fattail.com.au

Phone: 1300 667 481

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

Fat Tail Logo

Fat Tail Daily is brought to you by the team at Fat Tail Investment Research

Copyright © 2025 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988