The Pilbara Minerals Ltd (ASX: PLS) share price rocketed 10.71% to $0.31 per share in yesterday's trade, but has since dipped 1.61% to $0.30 per share at time of writing following its first-quarter trading update yesterday evening.
What did Pilbara Minerals announce?
Pilbara's September quarter production numbers were "moderated" at its Pilgangoora project.
The company cited customer requirements and current market conditions as key reasons behind lower quarterly production.
Pilbara produced 21,322 dry metric tonnes (dmt) of spodumene concentrate during the quarter, down from 63,782 dmt in the June quarter.
Shipped tonnes of spodumene concentrate were more than 50% lower at 20,044 dmt for the quarter with Tantalite concentrate sales also plummeting.
What about Pilbara's operations?
Pilbara's operational highlights included its first shipment to China's Great Wall Motor Company in August.
The Aussie lithium group's shipment is part of a 6-year offtake agreement for 20,000 dmt per annum.
The Pilbara Minerals share price rocketed higher yesterday, but has dipped lower in morning trade today.
Pilbara's $111.5 million equity raising could impact share price movement going forward. The company has advised $55 million of the raise is a strategic placement to China's largest EV battery manufacturer, CATL.
Pilbara is seeking $36.5 million via an underwritten institutional placement and a $20 million share purchase plan.
The Aussie miner also declined to sell its Pilgangoora minority interest due to softening market conditions in the quarter.
How has the Pilbara share price performed this year?
Pilbara's September quarter was called "challenging" by Managing Director and CEO Ken Brinsden.
Global lithium markets struggled and the Pilbara Minerals share price is down 44.64% lower since the start of July.
The Pilbara Minerals share price is down 57.53% since the start of January, despite yesterday's surge.
The Aussie lithium group has been hampered by a softening market, which has also hit Galaxy Resources Ltd (ASX: GXY) and Orecobre Ltd (ASX: ORE) hard.
The company's operating cash flow remains in the red and came in at negative $28.76 million in the September quarter.
