The market may be sinking lower but the same cannot be said for the Pilbara Minerals Ltd (ASX: PLS) share price on Wednesday.
In afternoon trade the lithium miner's shares have surged 8% higher to a 52-week high of $1.01.
Why is the Pilbara Minerals share price surging higher?
Investors have been buying the company's shares this afternoon following the release of an update on its second quarter shipments.
According to the release, the company achieved record quarterly shipments of 70,609 dry metric tonnes (dmt) of spodumene concentrate to offtake partners.
This means the company exceeded its previous sales guidance for the quarter, which forecast shipments to be in the range of 55,000 to 70,000 dmt.
It also represents a 38% increase on the shipments it recorded in the previous quarter of 43,630 dmt and is well above the previous shipment record of 46,682 dmt from two years ago.
Pilbara Minerals' Managing Director and CEO, Ken Brinsden, was very pleased with the quarter.
He commented: "What a great way to start the New Year with record tonnes shipped from Pilgangoora to support increasing customer demand and an upward trend evident in the price for lithium chemicals in China, showing positive signs of a recovery in the lithium raw material market."
The company advised that it has seen a material uplift in lithium chemicals pricing within China. It notes that the Platts Battery Grade lithium carbonate pricing is up 35% to date from its lows in August 2020.
Mr Brinsden believes the company is well-placed to take advantage of improving trading conditions after a very busy 18 months.
"The significant amount of work we have undertaken over the past 18-months in improving lithia recoveries, reducing operating costs and refinancing our senior debt facility, together with the impending acquisition of the neighbouring Altura Lithium Project, means that Pilbara Minerals is well positioned to respond to a recovery in the lithium market and capitalise on improvements in market conditions," he added.
A full update on its quarterly performance will be released to the market before the end of the month.
