• 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 Pre-Auction Bid Reflects ‘Strong Demand’

Like 0

By Kiryll Prakapenka, Thursday, 23 June 2022

Australian lithium producer Pilbara Minerals [ASX:PLS] secured a pre-auction bid of over US$7,000/dry metric tonne.

Australian lithium producer Pilbara Minerals [ASX:PLS] secured a pre-auction bid of over US$7,000/dry metric tonne.

Pilbara said the price reflects ‘continued strong demand conditions.’

While the bid was positive news, Pilbara was not spared a lithium sell-off on Thursday.

Despite rising in morning trade, the PLS stock fell into the red by the afternoon, along with many of its lithium peers.

Hardest hit on Thursday was Lake Resources, who continues to shed market cap value following a sudden — and as yet unexplained — managing director exit.

LKE shares were down as much as 17%.

Newly listed spin-off Leo Lithium [ASX:LLL] was down 20% in early afternoon trade.

Sayona Mining [ASX:SYA] was down 11%.

Ioneer [ASX:INR] was down 10%.

Liontown Resources (ASX:LTR] and Novonix [ASX:NVX] were both down 8%.

ASX:PLS STOCK PRICE CHART

Source: Tradingview.com

Pilbara’s Pre-BMX Auction Result

This morning Pilbara Minerals shared that it managed to secure a new price for its spodumene concentrate cargo after accepting a pre-auction bid before its sixth scheduled digital auction at the Battery Material Exchange (BMX).

Pilbara accepted an offer of US$6,350 dry metric tonnes (dmt) for 5,000 dmt on a 5.5% lithia basis.

Pilbara said the US$6,350 total sale price equates to around US$7,017 dmt when adjusting for lithia content and freight costs.

PLS plans to ship the spodumene in late July.

In a thinly veiled counter to Goldman Sachs’ recent bearish report on the outlook for lithium, Pilbara’s CEO, Dale Henderson said:

‘This is an exceptional outcome which provides further evidence of the unprecedented demand for battery raw materials being experienced across the global lithium-ion supply chain at this time.

‘Contrary to recent suggestions that the market has peaked, the evidence we are seeing at the coalface with our customers, including this pricing outcome, suggests that demand remains incredibly strong, with a continued healthy outlook for the foreseeable future.’

PLS share price outlook

Pilbara was happy with the pre-auction offer.

PLS managing director Dale Henderson thought the pre-auction bid showed demand remains ‘incredibly strong’.

But a question remains.

Why not go ahead with the auction? Why not see if the pre-auction offer could be bid up?

Did Pilbara believe the auction would not guarantee a higher price? If so, why?

For instance, just last month an auction for a controlling equity stake in a Chinese lithium mine saw 3,448 bids.

The winning bid was nearly 600 times higher than the starting price.

While that auction highlights the scramble for lithium supply, not all are convinced lithium prices can remain elevated.

By 2023 Goldman Sachs believes lithium prices will slump.

Credit Suisse also says there’ll be a lithium glut by 2025.

That may throw off some investors pondering the lithium sector.

But lithium is not the only material necessary for the EV transition.

In fact, given the acute interest in lithium stocks, there may be a smarter way to play the EV theme than loading up on lithium stocks.

The flood of capital into the lithium sector is making our team at Money Morning think there’s a better way to play the EV boom.

It involves what you can call lithium’s little brother.

 

Regards,

Kiryll Prakapenka,

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