Ann: Results of Fifth BMX Auction, page-52

https://thewest.com.au/business/min...her-record-lithium-price-at-auction-c-6928110
Pilbara Minerals achieves another record lithium price at auction

Stuart McKinnonThe West Australian
Wed, 25 May 2022 8:45AM
Stuart McKinnon


Pilbara Minerals managing director Ken Brinsden. Credit: Kelsey Reid/The West Australian


Pilbara Minerals has achieved another record price for a cargo of its lithium concentrate in an auction, confirming managing director Ken Brinsden’s declaration last month that prices for the energy metal would go higher.

Pilbara revealed late on Wednesday a 5000-tonne cargo of 5.5 per cent spodumene concentrate had sold for $US5955/t which it said equated to $US6586 on a cost, insurance, freight price basis.

The price was about 5 per cent higher than the record achieved for a similar spot cargo in the company’s so-called BMX auction last month.

RBC Capital Markets analyst Kaan Peker said the price was 35 per cent above the current spot price in China, and 6 per cent above the reported weekly Platts index price, indicating that Chinese chemical converters were willing to pay more for spodumene given the current lithium market conditions.
“We believe this is a good indication that underlying demand remains strong and that spodumene concentrate prices in China/seaborne can still move higher,” he said.
He said the price suggested Chinese refiners of lithium were still making profits even though lithium carbonate prices had softened marginally recently to about $US69,000/t on the back of COVID lockdowns in China and increasing lithium supply.
“We expect the spodumene material auction will become more commonplace outside of China, improving the margins of mine operators,” Mr Peker said.

Pilbara’s record price comes after Mr Brinsden declared lithium prices, which have almost doubled since the start of the calendar year, would rise further as historical norms in the market broke down and miners secured a greater share of the margins in the supply chain.

RBC also noted US chemicals giant Albemarle had this week increased its full-year financial guidance on better than expected progress in shifting its lithium customers towards variable price contracts.

Despite the record price achieved, Pilbara shares dipped 5¢, or 2 per cent, to $2.85 at 8.40am.