Why the Pilbara Minerals (ASX:PLS) share price is up 9% this Thursday

What is moving the lithium producer's share price this Thursday?

| More on:
A flaming orange arrow against a black background demonstrates the rising Pilbara Minerals share price today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Pilbara Minerals Ltd (ASX: PLS) share price is on fire today. Pilbara shares are up 9.9% so far this Thursday and are currently trading at $1.69 a share after closing at $1.54 yesterday and opening at $1.58 this morning.

$1.69 a share is a new 52-week, and an all-time high share price for Pilbara. The company is now up an incredible 93.1% year to date in 2021 so far, and up an even more astonishing 425% over the past 12 months.

Pilbara shares are also topping the ASX boards in terms of trading volume today. Out of all the S&P/ASX 200 Index (ASX: XJO) shares on the markets today, Pilbara shares have swapped hands the most frequently so far, with more than 20 million shares traded already (and it's only lunchtime).

So what on earth is going on with this lithium producer this Thursday?

Why is the Pilbara Minerals share price on fire today?

Well, it's hard to say. There has been no real news or announcements out of the company today. Well, save for some routine paperwork that was released yesterday afternoon after market close. This informed investors that Pilbara will be delivering a quarterly business trading update on 29 July. But that's probably not what's getting investors hot under the collar today.

One possible source of optimism here might be the update from fellow ASX lithium producer Galaxy Resources Limited (ASX: GXY) that we saw delivered this morning. As my Fool colleague James covered earlier today, Galaxy reported record quarterly production for the second quarter.

Management also stated that the company "continues to experience strong demand" for lithium products amid rising global electric vehicle sales and strong demand from the Chinese market in particular.

Galaxy shares are also up big today, rising 10% so far to $4.40 a share, as well as hitting a new all-time high of its own.

Galaxy and Pilbara are essentially competing in the same market with the same commodity. So what is good for the goose is generally good for the gander here. As such, it's not too surprising that goodwill from Galaxy's results would spill over into the Pilbara Minerals share price.

Where Pilbara shares currently stand, the company has a market capitalisation of $4.44 billion.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Miner looking at a tablet.
Resources Shares

Here's a fund manager's bull case for Mineral Resources shares

It’s a rough time for this stock. Let’s dig into whether it’s an opportunity.

Read more »

Australian notes and coins symbolising dividends.
Resources Shares

The BHP dividend doesn't attract me – Here's why

I’m steering clear of BHP as a passive income stock for a few reasons.

Read more »

Miner and company person analysing results of a mining company.
Resources Shares

The Mineral Resources share price just slumped another 7%. Here's why

Investors are bidding down Mineral Resources shares on Wednesday. But why?

Read more »

Female miner smiling in front of mining vehicle.
Resources Shares

Guess which ASX lithium share is racing 8% higher on record production

Investors are sending the ASX lithium share racing higher on Wednesday.

Read more »

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Resources Shares

Why is the Fortescue share price tanking 7% this week?

There are several factors weighing on the iron ore giant this week.

Read more »

Miner looking at a tablet.
Resources Shares

Up 7% in a month, are Pilbara Minerals shares in the buy zone?

Lithium continues to be a sore spot for many ASX stocks.

Read more »

Miner looking at a tablet.
Resources Shares

South32 shares sink amid $33 million copper investment

Copper continues to be in hot demand.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

Why are ASX 200 mining stocks diving hard on Monday?

Investors are not impressed by developments in China.

Read more »