The Pilbara (ASX:PLS) share price pumped 5% higher today. What happened?

Wednesday was a good day on the ASX for Pilbara and its peers.

| More on:
A GWR Group female employee in a hard hat and overalls with high visibility stripes sits at the wheel of a large mining vehicle with mining equipment in the background.

Image source: Getty Images

The Pilbara Minerals Ltd (ASX: PLS) share price surged higher today despite no news being released by the company.

However, it wasn’t alone in its gains. The company’s home sector, the S&P/ASX 200 Materials Index (ASX: XMJ), also soared today, having gained 2.14%.

As of Wednesday’s close, the Pilbara share price is $2.49, 5.51% higher than it was at the end of Tuesday’s session.

For context, the S&P/ASX 200 Index (ASX: XJO) gained 1.25% today.

Let’s take a look at the latest news from the lithium producer and what might have boosted its stock.

Pilbara share price storms higher

Wednesday was a good day on the ASX for the Pilbara share price.

Its surge brought the company’s gains for the last 30 days to 8.7%, despite it having been relatively quiet in that time.

The first and only time the market heard from Pilbara in the last month was when it announced it had increased its senior debt facilities.

As my Foolish colleague, Aaron reported at the time, the company expanded its finance facility by US$20 million to US$130 million and its undrawn working capital facility by US$10 million to US$25 million. Its total senior secured debt facilities were also boosted by US$30 million to US$155 million.

Most of the extra funds will go towards the restart of its Ngungaju Plant, part of its Pilgangoora Operation.

The news saw the Pilbara share price lift 1.6% and hit a new all-time high.

However, today’s surge is less simple to explain. Though, unexplained gains seemed to have occurred across the lithium-producing board today, with many of Pilbara’s peers joining in on the action.

The Mineral Resources Limited (ASX: MIN) share price soared 5.8%, while that of Liontown Resources Limited (ASX: LTR) increased 4.8%.

Right now, the Pilbara share price is 187% higher than it was at the start of 2021. It has also gained 212% since this time last year.

Should you invest $1,000 in Pilbara Minerals right now?

Before you consider Pilbara Minerals, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Pilbara Minerals wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Brooke Cooper 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.

More on Materials Shares

a man sits on a rocket propelled office chair and flies high above a city

Aurora Energy Metals share price rockets 35% on ASX debut

This lithium and uranium explorer debuted the ASX in style.

Read more »

A fit man flexes his muscles, indicating a positive share price movement on the ASX market
Materials Shares

‘Strong demand’: Bluescope share price strengthens on guidance upgrade

BlueScope is heading for blue skies today...

Read more »

A group of three builders wearing worker overalls and carrying hard hats in their hands jumps jubilantly atopa rooftop space on a commercial building with an airconditioner shaft in the background and the sun behind a light cloud behind them.
Broker Notes

Why is the James Hardie share price surging higher today

We look at what's driving the recovery in the building materials company's shares on Wednesday.

Read more »

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Materials Shares

Boral share price down 3% on earnings hit

Boral shares are trading lower on Wednesday...

Read more »

three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.
Materials Shares

Battery-powered! 3 ASX mining shares up more than 50% in 2022

What's driving these explorers' shares higher?

Read more »

man looking at laptop waiting for Pilbara Minerals trading halt to end
Materials Shares

When will AVZ Minerals shares start trading on the ASX again?

Here are all the details on the company's extended trading halt and when it's expected to end.

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Materials Shares

Here’s why the Calix share price is leaping 6% on Tuesday

The environmental technology company’s shares are on the rise after a joint announcement with Pilbara Minerals.

Read more »

Sad Probuild construction worker in front of half built house puts his hand to his forehead as he talks on the phone
Earnings Results

James Hardie share price stumbles despite 36% lift in annual sales

Both quarterly and yearly net income figures increased markedly.

Read more »