The Pilbara Minerals Ltd (ASX: PLS) share price is ending a dramatic week on a high, leaping 1.18%. Earlier, it was trading as high as 4%.
Unfortunately, that sees the lithium-tantalum producer’s stock approaching the end of a short week notably lower than where it started.
At the time of writing, the Pilbara Minerals share price is $2,98, 0.68% higher than its previous close.
For context, the S&P/ASX 200 Index(ASX: XJO) is currently up 0.56%. Though, the ASX 200 has been left in the dust of the material sector on Thursday.
Right now, Pilbara Minerals’ home sector – the S&P/ASX 200 Materials Index (ASX: XMJ) – has gained 1.03%, making it one of the best performing sectors on Thursday.
Let’s take a look at what’s been going on with the Pilbara Minerals share price this week.
What’s been driving the Pilbara Minerals share price?
Pilbara Minerals started this week out on the wrong foot, slumping 3.75% on news of its joint venture with Posco. The companies are building a downstream lithium chemicals conversion facility in Korea.
On Monday, Pilbara Minerals announced that all key conditions and criteria for the joint venture’s formation had been fulfilled.
Pilbara Minerals’ initial 18% stake in the venture will be mostly funded from a 5-year convertible bond, provided by Posco.
Additionally, as The Motley Fool Australia’s James Mickleboro reported at the time, the funding requirements for the project had been bumped US$50 million higher than previously forecasted.
Most of the project’s key metrics for the March quarter were within its previously given guidance. However, COVID-19 outbreaks and port disruptions hampered its production and shipping.
The Pilbara Minerals share price slumped 5.84% on the update. Luckily, it picked up on Wednesday, gaining 2.07%.
Additionally, after yesterday’s close, the company announced that the final condition for its joint venture with Posco has been satisfied.
Pilbara Minerals has drawn down around $79.6 million under the convertible bond agreement to fund its investment in the venture. In doing so, it has issued 79.6 million convertible bonds to Posco.
The non-price sensitive update might be bolstering sentiment in Pilbara Minerals shares on Thursday.