Ann: Becoming a substantial holder, page-17

https://thewest.com.au/business/min...-the-most-shorted-stock-on-the-asx-c-12748244

AustralianSuper piles into lithium miner Pilbara Minerals, the most shorted stock on the ASX

Daniel NewellThe West Australian
Fri, 1 December 2023 8:57AM



Pilbara Minerals Credit: Supplied


The country’s biggest superannuation player is pitting itself against hedge fund behemoths as it builds a big stake in WA’s Pilbara Minerals, the most shorted stock on the Australian Securities Exchange.

Filings to the ASX late on Thursday show AustralianSuper started amassing shares in the Dale Henderson-led company in early July when shares were priced at more than $5.

It has quietly continued to snap up more stock over the past few months before the purchase of more than 10 million shares in four blocks during the final week of November tipped it just over 5 per cent ownership of the register, triggering the requirement for Pilbara to lodge a substantial holding notice.

The final tranche of shares were picked up for between $3.58 and $3.64 a share. It now holds 153.4 million shares, or 5.1 per cent of the company. At Pilbara’s Friday opening price of $3.59, the holding is worth $550.6 million.

Pilbara’s share price has been on a steady decline since reaching a 12-month high of $5.43 in August as lithium prices continue to fall, with traders tipping it still has further to go as bearish bets mount on the Chinese futures market.
It is now down just over 17 per cent since the start of June.

After rallying for two years to a record high in 2022, lithium prices have collapsed, battered by a supply glut and disappointing demand growth for batteries.

Higher interest rates have cast a pall over global EV sales, forcing some automakers to rethink their strategies.
The lithium market won’t return to a deficit until 2028, according to consultancy Benchmark Mineral Intelligence.

Pilbara’s substantial holder notice detailing AustralianSuper’s trades comes just a day after it was revealed that Australian Securities and Investments Commission data had crowned Pilbara the most shorted stock on the local bourse. Just over a fifth of the stock is shorted, up from 7 per cent in July.

The revelation of AustralianSuper’s interest comes just weeks after the superannuation fund muscled further into the protracted $20 billion takeover of Origin Energy by a North American conglomerate led by Brookfield.

AustralianSuper has built a 15 per cent foothold in the east coast energy giant to become its biggest stakeholder and is refusing to back the acquisition, frustrating the suitors as they struggle to finalise a deal.