Later this month, investors will be watching Pilbara Minerals Ltd (ASX: PLS) shares very closely.
That's because, on 24 July, the lithium giant is scheduled to release its quarterly update after the market close.
As Pilbara Minerals has stopped releasing monthly updates on its lithium sales, this update will be keenly observed by the market.
But what are analysts expecting? Let's find out.
What is the market expecting from Pilbara Minerals' quarterly update?
According to a note out of Goldman Sachs, its analysts expect Pilbara Minerals to report quarterly spodumene production and sales of 160,000dmt.
The former is ahead of the consensus estimate for production of 153,000dmt. It will also be up from the previous quarter's production of 148,000dmt.
Goldman Sachs' estimates imply annual production of 617,000dmt.
What about lithium prices and costs?
The note reveals that the broker is expecting Pilbara Minerals to report a quarterly realised spodumene price of US$4,432 a tonne for its spodumene. This is the equivalent of a 6% spodumene price of US$4,880 a tonne.
While this is up from a year earlier, it is down approximately 10% quarter on quarter and approximately 22% from the second quarter.
Also heading in the wrong direction will be its costs according to Goldman. It expects Pilbara Minerals' cash cost (including freight and royalties) to be US$470 per tonne. This would be up 8.8% quarter on quarter and 23.5% from the second quarter. It would also mean a full-year cash cost of US$423 per tonne.
Though, it is worth noting that Goldman is being more generous with its quarterly cost estimate than the rest of the market. The consensus is for cash costs of US$565 per tonne during the fourth quarter.
Are Pilbara Minerals shares in the buy zone?
As things stand, Goldman is sitting on the fence with Pilbara Minerals shares.
It has a neutral rating and a $5 price target, which is just a touch lower than its current share price of $4.88.
Though, of course, all that could change if Pilbara Minerals delivers a blockbuster update later this month.
