The Kidman Resources Ltd (ASX: KDR) share price may be having a day to forget on Monday, but not all lithium miners are in the red.
One lithium miner that has had a strong start to the week is Pilbara Minerals Ltd (ASX: PLS). In early afternoon trade its shares are up 5% to 80.2 cents. At one stage they were up as much as 7.5%.
Why are Pilbara Minerals' shares storming higher today?
This morning Pilbara Minerals announced that it is on track for its first shipment of spodumene concentrate from its Pilgangoora lithium-tantalum project this month after making further strong progress with the production ramp-up.
The release explains that the Pilgangoora Stage 1 concentrator is achieving strong production throughput for both coarse and fines circuits. The combined tonnages are averaging above 500 tonnes per day, which management advises are in line with the planned throughput levels expected at this point of ramp-up.
Furthermore, both circuits are achieving exceptional product quality, confirming the ability of the project to deliver a premium quality product to world markets.
What's next?
Management expects to deliver a minimum of 5,000 tonnes of spodumene concentrate ready for ship-loading in Port Hedland from around September 20.
After which, the focus will then be on growing production and stockpiling concentrate (both on site and in Port Hedland) for subsequent shipments to its premier customer group.
Should you invest?
I think this is a major positive for the company and means it will be generating meaningful revenues imminently.
And if lithium prices do not plunge, as many have predicted, then Pilbara Minerals and peers including Galaxy Resources Limited (ASX: GXY) and Orocobre Limited (ASX: ORE) could prove to be great investments at current levels.
However, where lithium prices go over the next 12 months is hard to predict. While I'm optimistic that demand will continue to grow quicker than supply, it may be worth waiting to see if that is the case before investing.
