Lithium giant Pilbara Minerals is on the lookout for acquisitions, as the company continues to print revenue.
The lithium miner just posted a massive quarterly result which has delighted shareholders and is now looking for the next bust of growth.
Managing director Dale Henderson (pictured above) said in an interview Tuesday that his company had “started to run the ruler” over potential new strategic acquisitions in the coming weeks and months, Miningnews.com reported.
“There is the opportunity for consolidation (in the sector),” Henderson said.
Pilbara Minerals’ lithium rock production rose 10% from the previous quarter to 163,000 tons, saying to the market is was on track to almost double annual production by 2025.
The company has a market cap of nearly $10 Billion and is a major supplier to global battery makers.
Meanwhile, a number of smaller lithium players had been seeing action this week.
Lithium mino stock Olympio Metals in an unrelated move (ASX:OLY) surged 25% with no news before the company quickly went into a trading halt.
Western Australia, where Pilbara Minerals operates, has seen a flurry of activity in the sector in recent months.
Meanwhile, another lithium king, Perth-based Liontown Resources is also holding its ground on a takeover bid by NYSE-listed Albemarle.
Also, this week, Perth lithium and iron ore giant MinRes reported weaker-than-expected results from lithium mining operations. Founder Chris Ellison also outlined his vision for a new era in lithium mining, in a colourful update for investors.
Pilbara Minerals Stock Target
According to The Motley Fool, Macquarie Bank analysts are bullish on the stock. PLS has a price target of $7.30 from the bank.
However, TMF notes Citi, Goldman Sachs, Morgan Stanley, and UBS all have price targets ranging from $5.00 to $5.20.
The company is sitting at around A$5.05
This week PLS said FY23 revenue increased by 238% to A$4.0 billion.
Pilbara also reported that production of spodumene concentrate increased by 10% quarter-over-quarter to 162.8 kt in the June quarter of 2023.
However, the company’s revenue declined by 18% in the quarter from A$1,033.9 million in the March quarter of 2023 to A$844.0 million in the June quarter of 2023 with a 22% increase in sales volumes partially offsetting a 33% decline in average estimated realized price, according to Kitco.
https://greeninvesting.co/2023/06/critical-minerals-fairytale-from-2m-cap-to-15b-in-3-years/,
