Lithium prices still flying as Pilbara Minerals sells lower grade spod cargo for equal-best $US6,350/t

Aussie hard rock lithium major Pilbara Minerals (ASX:PLS) has just sold a 5,000t cargo of 5.5% spodumene via its auction platform for $US6,350/t – its equal best result ever (reports Stockhead).
4th August 2022

That equals an implied price of $US7,012/t on a 6% basis (the industry benchmark).

“Strong interest continues to be received in both participation and bidding by a broad range of qualified buyers with a total of 67 bids received online during the 30 minute auction window,” PLS says.

This is a slight increase on the most recent July auction result, which saw 5,000t (5.5%) sell for US$6,188/dmt. There were also over 25 more bids placed this time around.

On June 23, a bid of US$6350/dmt for a 5000t shipment of 5.5% Li2O lithium concentrate was so appealing PLS accepted the offer ahead of a planned sixth Battery Material Exchange auction.

It demolished its record price for spodumene at the time.

PLS boss Dale Henderson recently used these words to describe the company’s decision to add another 100,000t of capacity at its Pilgangoora project which will take its spodumene production potential to as much as 680,000t.

A further enhancement to 1Mtpa is being studied.

In the June quarter, average realised selling prices rose 61% to US$4,267/dmt, boosting the company balance sheet by $589.3m to an incredible $874.2m.

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