Why is the Pilbara Minerals share price surging 5% on Thursday?

It’s a good day for those invested in this ASX lithium share.

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Key points

  • The Pilbara Minerals share price lifted to a high of $2.21 on Thursday, representing a 7.8% gain, before partially retreating
  • Its day in the green comes after the stock plunged 30.5% over the first 15 days of June
  • The ASX 200 materials index is also gaining on Thursday, lifting 1% at the time of writing

The Pilbara Minerals Ltd (ASX: PLS) share price is launching higher today despite the company’s silence.

It’s only the second session for the entire month of June so far in which the lithium producer has posted a gain. In fact, it’s currently 27% lower than it was at the end of May.

At the time of writing, the Pilbara Minerals share price is $2.16, 5.37% higher than its previous close. Earlier, it hit an intraday high of $2.21, a gain of 7.8%.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.49% right now.

Let’s take a closer look at what might be going on with the ASX lithium share on Thursday.

What’s happening with the Pilbara Minerals share price?

Stock in Pilbara Minerals is regaining some of the ground lost during its disastrous start to the month.

It’s doing so alongside its home sector – the S&P/ASX 200 Materials Index (ASX: XMJ). Right now, the sector is the ASX 200’s fourth best performer, gaining 0.97%.

And ASX lithium shares are helping to boost it higher. The materials sector is currently being led by Pilbara Minerals’ stock, with that of Liontown Resources Limited (ASX: LTR) coming in a close second. It’s up 4.93%.

Gold explorer and producer Ramelius Resources Limited (ASX: RMS) rounds out the sector’s top three performers. It’s gaining 4.15% right now.

Pilbara Minerals’ recent suffering follows from an ASX lithium sell-off event earlier this month, largely brought about by bearish sentiment on lithium from Goldman Sachs.  

But, as my colleague Brendon Lau recently reported, the future could be brighter for Pilbara Minerals than the broker seemingly expects.

Despite such positivity, the Pilbara Minerals share price is still trading 38% lower than it was at the start of 2022. Though, it is swapping hands for 60% more than it was this time last year.

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 positions in and has recommended Goldman Sachs. 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 Scott Phillips.

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