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Date : 03/02/2023

Pilbara Minerals Ltd (ASX: PLS) Share Price Soar After Awarding P680 Expansion Project to Primero

Pilbara Minerals Ltd (ASX: PLS) is an Australian mining company primarily focused on developing lithium and tantalum projects in the Pilbara region of Western Australia.

The company’s flagship project is the Pilgangoora lithium-tantalum project, one of the world’s largest hard rock lithium deposits. PLS also have other lithium and tantalum projects in the Pilbara region, including the Greenbushes lithium project, the world’s largest hard rock lithium mine.

The PLS share price has been surging in the previous 12 months, but the previous 5 days were really good for its investors and the company’s stock. First, it announced the new project director then it informed its shareholders about awarding a contract to Primero. As a result of this, PLS shares are continuously rising this week.

How does the PLS share price chart look?

The PLS share price has shown a tremendous hike in the previous 12 months. The last 5 days were incredible as not only did ASX PLS stock soar up to 23%, but the company have announced a couple of exciting news which fueled the already increasing PLS stock.

Pilbara Minerals shares are trading at $5.18, showing a solid gain of 23% in just 5 days after awarding the P680 expansion project to Primero. The current market cap of the company is 15.60 Billion AUD.

pls share price trend at tradingview.com

PLS: Contract Awarded to Primero

According to a press release, Pilbara has selected Primero Group Limited (Primero), a 100% owned subsidiary of NRW Holdings, to carry out construction at its Pilgangoora Project in Western Australia as part of the P680 Expansion Project.

The contract is valued at over A$62 million, including preliminary works for the new Crushing and Ore Sorting Facility and operations related to the building of the Primary Rejection Facility.

According to the terms of the agreement, Primero will be responsible for the primary rejection facility’s structural, mechanical, plumbing, electrical, and instrumentation installation (SMPE&I), as well as the crushing and ore sorting facility’s comprehensive earth and concrete works.

To connect the Primary Rejection Facility with the current Pilgan Plant, Primero will also provide commissioning, integration, and shutdown assistance.

The contracts for the Crushing and Ore Sorting Facilities’ construction related to SMPE&I have not yet been granted but will be issued later this year.

What does it mean for PLS shares?

Here are the shares analysis for Pilbara ASX stocks by our experts:

This is a significant development for Pilbara Minerals, marking a key step in the project’s progression. This contract is a positive development for Pilbara mining, as it allows the company to move forward with its plans to develop the Pilgangoora project and capitalize on the growing demand for lithium. It also demonstrates PLS’s ability to secure experienced partners to develop the project. The project is expected to produce high-grade lithium concentrates in high demand for use in lithium-ion batteries for electric vehicles, energy storage, and electronics.

The total cost project was revised to around 404 million AUD in December 2022. It is expected to be financed through a combination of debt and equity. The project has received strong support from key stakeholders, including offtake partners and financiers.

The P680 Expansion Project is expected to be completed in 2023. It is expected to significantly increase PLS’s production capacity, enabling it to meet the growing lithium demand driven by the increasing use of electric vehicles and energy storage systems. The expansion project will also strengthen the position of Pilbara Minerals as a leading lithium producer, and it’s expected to provide a solid foundation for future growth.

Pilbara Announced New Project Director

Paul Laybourne, a seasoned executive in project management in the mining sector, was recently named Project Director at Pilbara Minerals.

As Pilbara Minerals’ new Project Director, Paul will be in charge of seeing to it that the company’s plans to increase production at the Pilgangoora Project to 1Mtpa are carried out as planned, as well as seeing to it that the company’s other significant downstream development initiatives help it move further down the global battery materials supply chain.

Conclusion:

Should you add Pilbara Minerals shares on your list of lithium stocks to buy now?

These developments are quite significant for the firm. It shows that the company is pursuing a diversification strategy to become a fully integrated, sustainable lithium producer and supplier. This means that the Pilbara stock is positioned to become an important performer in the expanding global lithium market.

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