Own Pilbara Minerals shares? Here's what to expect from its quarterly update

Pilbara Minerals Ltd (ASX: PLS) shares will be in focus this week.

That's because the lithium miner will be releasing its highly anticipated quarterly update on Thursday.

What is the market expecting from Pilbara Minerals?

According to a note out of Goldman Sachs, its analysts are expecting the company's production to come in lower than consensus estimates for the three months ended 30 September.

Goldman is forecasting production of 150,000 dry metric tonnes (dmt) of spodumene, compared to the consensus estimate of 156,000 dmt. Both will be down from 163,000 dmt during the previous quarter.

The broker is also expecting sales to come in lower than the market is expecting. It has pencilled in spodumene sales of 148,000 dmt, compared to the consensus estimate of 162,000 dmt. Once again, both estimates are lower than the previous quarter when Pilbara Minerals reported sales volumes of 176,000 dmt.

What about lithium prices?

The main focus for investors with this release will be lithium prices. Recent weakness in the price of the battery-making ingredient has put significant pressure on Pilbara Minerals shares.

The note reveals that Goldman Sachs is expecting the company to report a realised spodumene price of US$2,433 per tonne. This compares to US$4,266 per tonne a year ago and US$3,256 per tonne in the previous quarter.

The market is a little more positive on its price estimates and expects Pilbara Minerals to report an average realised spodumene price of US$3,140 per tonne for the period.

Finally, Goldman expects the company's costs to increase almost 10% quarter on quarter to US$461 per tonne. Whereas the market expects a greater increase to US$505 per tonne for the three months.

Are Pilbara Minerals shares in the buy zone?

Goldman is sitting on the fence with its recommendation at present.

It currently has a neutral rating and a $4.10 price target on Pilbara Minerals' shares. While this implies reasonable upside from current levels, it still doesn't appear to believe the risk/reward is sufficient for investors.