Why the Pilbara Minerals Ltd share price is falling

A corporate presentation out of emerging lithium and tantalum producer Pilbara Minerals Ltd (ASX: PLS) has seen its share price drop 2% to 88c per share today, despite the company revealing a 36% increase in lithium resources at its Pilgangoora Project in Western Australia.

Updates on the resource estimate underpins the company’s Stage 2 development of the project with Pilbara CEO Ken Brinsden saying the company is poised to “take full advantage of burgeoning demand for lithium raw materials – which keeps surprising to the upside”.

Pilbara recently reached a landmark agreement with South Korea’s POSCO for spodumene concentrate from Pilgangoora, with a presentation earlier this month naming the project as “the world’s leading lithium development”.

With a $1.57 billion market cap, Pilbara has plenty of room for expansion and its shares have sunk lower alongside lithium peers this week.

Elsewhere in the sector Orocobre Limited (ASX: ORE) shares were down 4.5% to $5.65 at the time of writing while Galaxy Resources Limited (ASX: GXY) was down 2.1% to $3.34.

This “Holy Grail” Technology Could Produce World’s First Trillionaire

One of the world’s richest people is sounding the alarm on what could be a trillion-dollar technology.

And when a tech billionaire – several times over – speaks, it pays to listen.

This could be your chance to get in on the ground floor!

Click here to discover a $19.9 trillion dollar idea — hidden in plain sight!

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.