$Pilbara Minerals Ltd(PLS.AU)$ Anticipated news of July's auction were announced yesterday, with a bid price of US$6,841 per dmt on a 6% lithium basis. This is a decrease from June's pre-auction offer which was accepted at US$7,017 per dmt on a 6% lithium basis.
While Pilbara feels that demand for lithium is still strong, this does indicate that we should temper our expectations and revenue growth outlook from 2H 2022 lithium sales. Coupled with the downtrend in the market as a whole, expect price to move back down towards $2.20.
Whether it moves further down depends on two things:
1) the upcoming financials report on 28 Jul. Any improvements from its previous net profit margin of ~20.5% might reverse the bearish outlook
2) a reversal in lithium price trend in August's auction
Might be a good time to cash out now [Thinking]
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