Here's why the Pilbara Minerals (ASX:PLS) share price is spiking today

Another spike for the resources player.

| More on:
A 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

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Pilbara Minerals shares are on the up today following a company announcement 
  • The company has climbed the next rung of the ladder in its quest to commercialise mid-stream technology 
  • In the last 12 months the Pilbara Minerals share price has soared over 209% 

Shares in Pilbara Minerals Ltd (ASX: PLS) are lifting today following the release of a company announcement.

At the time of writing, the Pilbara Minerals share price is trading at $3.24 after spiking 18% in the last month of trade.

TradingView Chart

Next rung on the 'mid-stream' ladder?

Pilbara advised it has completed a scoping study as part of its "mid-stream value-added lithium growth strategy" alongside Calix Limited (ASX: CXL).

Lycopodium Minerals Ltd (ASX: LYL) actually conducted the study, that Pilbara says will give support to technical aspects of its Pilgangoora Operation in WA.

The study's findings confirm the technical capability of Pilbara's flowsheet, capable of producing lithium phosphate salt using flotation spodumene concentrate from Pilgangoora.

"The Scoping Study is the first economic evaluation of the Mid-Stream Project which has been prepared to an accuracy level of +/-40% (for Capital costs) and +/-30% (for Operating costs)," it remarked.

"It represents a preliminary study of the potential technical and economic viability of the proposed process path and demonstration scale facility development".

The release also stated that all progress will move ahead as part of a proposed joint venture with Calix, with more definitive studies to start that journey.

What's next?

The company expects to complete a number of milestones by the end of 2022, particularly around joint-venture development and cost optimisation, it says.

This should take place in the form of more definitive and engineering studies, Pilbara notes, "to further assess the operating and capital costs for the Demonstration Plant."

Each of these moves will guide both Pilbara and Calix to a final investment decision on the site, aiming to commercialise its mid-stream technology across the global industry.

If all goes according to plan, the plant's construction could start as early as 2023, with completion pencilled for Q1 CY2024, Pilbara says.

"Following completion of construction and commissioning, a period of process optimisation
would follow".

In the last 12 months, the Pilbara Minerals share price has soared over 209% and is now trading 4% higher for the week.

Motley Fool contributor Zach Bristow 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 Resources Shares

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.
Resources Shares

Down 14% in 2024, why is the BHP share price sliding again today?

ASX 200 investors are bidding down the BHP share price on Wednesday.

Read more »

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Resources Shares

These ASX 200 mining stocks could rise 40% to 50%

Analysts think these miners are dirt cheap at current levels.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Fortescue share price leaps 5% as electric machinery makes a milestone

Fortescue is charging ahead with its electric mining ambitions.

Read more »

rising mining asx share price represented by happy woman miner in hard hat
Resources Shares

Why the BHP share price crushed the benchmark this week

BHP shareholders enjoyed a rewarding week.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Dividend Investing

Here is the profit forecast to 2026 for BHP shares

Let’s unearth how much profit this miner could make.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Is the worst of the selling now over for ASX iron ore shares?

ASX iron ore giants like BHP, Rio Tinto and Fortescue rebounded this week after falling hard in 2024.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Resources Shares

Why are ASX 200 mining shares smashing the benchmark on Wednesday?

Rio Tinto, BHP and Fortescue shares are all charging higher today.

Read more »

Two miners standing together.
Resources Shares

Why is the South32 share price getting battered today?

ASX 200 investors are bidding down South32 shares today.

Read more »