JOHANNESBURG (miningweekly.com) – In the year that has passed between the 2016 and 2017 annual general meetings (AGMs), the market capitalisation of lithium project developer Pilbara Minerals has more than doubled – a feat chairperson Tony Kiernan attributes to the quality of the Pilgangoora project, which is set to start spodumene shipments next year.
The market capitalisation of Pilbara Minerals has surged from about A$700-million this time last year, to more than A$1.5-billion, with the company’s stock fetching A$0.99 a share on Thursday.
“Surely, this reflects the quality of the Pilgangoora project, in terms of its scale, longevity and anticipated low operating cost base, as well as the exceptional quality of our product, which matches perfectly the long-term requirements of our customer base,” Kiernan said in his address at Thursday’s AGM.
He said shareholders could expect an increasing pace of growth in the year ahead, as Pilbara Minerals is set to start commissioning and ramp-up of shipments at Pilgangoora in the second quarter of next year.
The Stage 1 project at Pilgangoora will be a two-million-tonne-a-year operation, producing an average of 314 000 t/y of 6% spodumene concentrate and 321 000 lb/y of tantalite, over 36 years.
The company is also working towards delivering a definitive feasibility study on the Stage 2 expansion to five-million tonnes a year by mid-2018.
At the Mt Francisco project, exploration drilling will get under way. Pilbara Minerals believes the project has the potential to be its second production hub in the region, Kiernan reported.