Pilbara Minerals refinancing hopeful for lithium

WA lithium producer Pilbara Minerals says it has managed to refinance a $US100m bond taken out in 2017 to fund construction of its Pilgangoora lithium mine in 2017
31st July 2020
Resources Rising Stars

WA lithium producer Pilbara Minerals says it has managed to refinance a $US100m bond taken out in 2017 to fund construction of its Pilgangoora lithium mine in 2017, in a sign the gloom surrounding the lithium sector may be beginning to lift (reports The Australian).

The company said on Thursday it had received commitments for a new $US110m debt facility, backed by BNP Paribas and the Clean Energy Finance Corporation. The new senior secured facility carries a rate of about 5 per cent interest, Pilbara Minerals said, well below the 12 per cent rates carried by the previous debt facility, and is repayable in 5 years.

Importantly, Pilbara Minerals will only make interest repayments for the first two years, lightening the company’s burden as it waits for a recovery in its core markets.

The company released its quarterly production report on Thursday, saying it had shipped 29,312t of lithium concentrate in the quarter, and finished June with $86.3m at bank.

“Market signalling indicates lithium pricing may be approaching the bottom, with several investment banks and industry analysts forecasting a demand surge and price turnaround in 2021,” the company said.

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