The Pilbara Minerals share price (ASX:PLS) is booming 8%. Here’s why

Pilbara Minerals shares are shooting higher after a 4-day suspension last week.

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The Pilbara Minerals Ltd (ASX: PLS) share price is back after a trading halt and subsequent suspension last Tuesday.

Pilbara Minerals share price missing in action

The Pilbara Minerals share price was suspended on the basis that it failed to disclose the issuing of 2,000,000 ordinary fully paid shares on 25 June upon the exercise of unlisted options.

On Friday, Pilbara Minerals advised that the “Supreme Court of Western Australia heard the company’s application to rectify an administrative oversight related to the delayed release of a cleansing notice in connection with the issue of shares by the company…”.

Making up for lost time

Last week, ASX-listed lithium heavyweights Galaxy Resources Ltd (ASX: GXY) and Orocobre Ltd (ASX: ORE) rallied 6.39% and 7.28% respectively.

Pleasingly, the broader lithium industry is also experiencing strong buying activity, with the Global X Lithium & Battery Tech Exchange Traded Fund lifting 3.65% last week, closing at a new record high on Friday.

The Lithium ETF is comprised of companies in the full lithium cycle, from explorers and miners through to battery production and electric vehicle automakers.

The Pilbara Minerals share price is catching up to its peers on Monday, surging 8.47% to record highs of $1.92 at the time of writing.

Digesting news

In addition to making up for lost time, Pilbara Minerals delivered two major announcements last week.

Firstly, the company announced its fourth quarter update on Wednesday, 28 July.

Pilbara Minerals reported strong production figures, record lithium spodumene shipments and a significant improvement in lithium prices.

The second update was regarding the company’s inaugural battery material exchange (BMX) auction.

In a previous announcement, Pilbara Minerals highlighted the BMX digital and sales platform as an “avenue for sales growth, offering interested parties the ability to access current and future unallocated spodumene concentrate product”.

The inaugural three-hour auction witnessed 62 online bids ranging from US$700 per dry metric tone (dmt) to US$1,250/dmt for 10,000 dmt cargo of spodumene concentrate from the company’s Pilgangoora operation.

The two positive announcements could be another factor propping up the record-breaking Pilbara Minerals share price on Monday.

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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