The Pilbara Minerals Ltd (ASX: PLS) share price is charging higher on Monday.
In morning trade, the lithium miner's shares are up 4% to $5.28.
Image source: Getty Images
Why is the Pilbara Minerals share price charging higher?
There have been a couple of reasons for the rise in the Pilbara Minerals share price this morning.
The first is a strong gain by the S&P/ASX 200 Index (ASX: XJO) after a very positive end to the week on Wall Street. At the time of writing, the benchmark index is up 1.9% to 6,802.8 points.
This major improvement in investor sentiment has given riskier assets a big boost and sent lithium shares flying higher today.
What else?
Also giving the Pilbara Minerals share price a boost today has been the release of an announcement that reveals that the insatiable demand for lithium continues.
According to the release, the company has entered into a further contract of sale for an additional 5,000dmt cargo following completion of the BMX pre-auction held earlier this month.
Impressively, the company has commanded a price even higher than what it commanded from this month's auction.
Pilbara Minerals has entered into a sale contract for 5,000dmt SC5.5 FOB Port Hedland priced at US$7,255/dmt. This is the equivalent of ~US$8,000/dmt on an SC6.0 CIF China basis after adjusting for lithia content on a pro-rata basis and inclusive of freight costs.
As a comparison, last week, the company accepted a US$7,100/dmt pre-auction bid, which equates to a price of US$7,830/dmt on an SC6.0 CIF China basis.
As with the other cargo, delivery of this latest sale is expected to be made from mid-November. This means it will be part of the company's first half sales.
