Pilbara Minerals Share Price Up Slightly on Quarterly Update

By Lachlann Tierney, Monday, 12 October 2020

At time of writing, the share price of Pilbara Minerals Ltd [ASX:PLS] is up 2.67%, to trade at 38.5 cents. The PLS share price has bounced strongly from the March market low, but is still a long way off the heady days of late 2017...

At time of writing, the share price of Pilbara Minerals Ltd [ASX:PLS] is up 2.67%, to trade at 38.5 cents.

The PLS share price has bounced strongly from the March market low, but is still a long way off the heady days of late 2017:

Source: Tradingview.com

PLS share price gets small uptick on update

While there weren’t any real surprises with this update, they are continuing to optimise their Pilgangoora project.

Perhaps the key takeaway is that they are using their plant a lot more than they were in the June quarter.

As per the announcement, they noted:

‘An increase in plant run-time and utilisation, which represented approximately 70-75% utilisation across the quarter (compared with 40% in the June quarter).’

So, after getting smashed in the June quarter, they are back to almost full steam.

Among the other optimisations was an almost doubling of their spodumene concentrate production.

Lithium prices remain depressed, but with EV sales holding up remarkably well in Europe so far, there is a case to be made that the lithium bottom is in.

It will be a very intriguing investment space to watch over the coming months.

Outlook for PLS share price

There are a couple key levels to be aware of:

Source: Tradingview.com

The PLS share price is on the verge of cracking the first level marked out here.

If it can puncture the second one at around 41 cents, then something larger could be afoot.

Pilbara Minerals is one of the three companies we profile in this free report.

In it, you will find our reasoning behind our thesis that 2020 could see a big finish for lithium stocks.

You’ll also get two other companies’ names, one with unique exposure to the European lithium supply chain.

Regards,

Lachlann Tierney,
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.

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Lachlann Tierney

Lachlann ‘Lachy’ Tierney is passionate about uncovering hidden opportunities in the microcap sector. With four years of experience as a senior equities analyst at one of Australia’s leading microcap firms, he has built a reputation for rigorous research, deep-dive due diligence, and accessible investor communications. Over this time, he has vetted seed, pre-IPO and ASX-listed companies across sectors, conducted onsite visits, and built strong relationships across the microcap space. Lachy is nearing completion of a PhD in economics at RMIT University, where his research focuses on blockchain governance and voting systems. His work was housed within the Blockchain Innovation Hub at RMIT, a leading research centre for crypto-economics and blockchain research. He holds a Master’s degree from the London School of Economics and an Honours BA in Philosophy and Politics from the University of Melbourne. Born in New York and raised in California, Lachy grew up a few blocks from biotech giant Amgen and counts among his peers various characters in the overlapping worlds of venture capital, technology and crypto. When he’s not researching microcaps, he’s most likely sweating it out in a sauna or dunking himself in cold Tasmanian water.

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