The Pilbara (ASX:PLS) share price has gained 15% in a month. Here's why this fund manager is still bullish

The global move to green energy is seeing lithium demand surge…

| More on:
One female and two male construction workers laugh on site.

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 up 15% over the past month.

And this was a month that saw the S&P/ASX 200 Index (ASX: XJO) end flat.

Following on a strong run like this (and indeed a stellar year, as we'll look at below), investors may be wondering if the ship has sailed for the Australian lithium-tantalum producer.

The answer to that, according to Kardinia Capital's portfolio manager Kristiaan Rehder, is a resounding no.

Why this fund manager sees more upside ahead

Speaking with the Motley Fool, Rehder said the Pilbara share price is looking to benefit from 2 strong thematics. First, a likely coming rise in interest rates. Second, and more importantly, the company's tier-1 lithium assets in a world that's moving to green energy.

On the inflation front Rehder said:

If interest rates do lift in an inflationary environment, history shows that equity returns can beat inflation. Equity markets can move higher in a rising interest rate environment as long as earnings growth continues to grow alongside.

In this sort of environment, the commodity and energy sectors tend to stand out.

And when it comes to commodities, Rehder says lithium is hard to beat. And within that space, Kardinia Capital favours Pilbara:

In the resource sector, Pilbara Minerals is a core holding of ours.

Pilbara owns one of the largest hard rock lithium deposits in the world, and has a very long mine life of over 20 years. It has strong exposure to the emerging electrification of the global economy thematic. It is a straight forward mining operation, open pit, in a very stable mining jurisdiction of the Pilbara. It has a high-quality partner. And it has cost advantages over the brine operations in South America.

We expect continued margin expansion for that operation and it can even scale up. And with the recent move downstream to high-grade lithium carbonate we think this story is going to continue to improve.

Pilbara share price snapshot

As mentioned up top, the past month's 15% gain for the Pilbara share price is par for the course for the ASX 200 lithium producer this past year, with shares gaining a whopping 334% in 12 months.

By comparison, the ASX 200 is up 13% in that same time.

Ih early trading today, Pilbara shares are down 1.65% to $2.39.

Should you invest $1,000 in Aeris Resources Limited right now?

Before you buy Aeris Resources Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Aeris Resources Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

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

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Resources Shares

Did you catch what happened with the big 3 ASX 200 mining stocks in April?

BHP, Rio Tinto, and Fortescue all reported their latest mining results in April.

Read more »

Miner looking at a tablet.
Resources Shares

After its earnings result, what's Macquarie's price target on Fortescue shares?

Let’s dig into what Macquarie thinks of Fortescue after its quarterly update.

Read more »

Two mining workers on a laptop at a mine site.
Resources Shares

The Mineral Resources share price is down 72% in a year. Time to pounce?

Two top experts ran their slide rules over Mineral Resources shares. Here’s what they found.

Read more »

Miner looking at a tablet.
Resources Shares

Mineral Resources share price shoots 15% higher on third-quarter report

The ASX 200 iron ore and lithium giant has released its 3Q FY25 activities report.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Why Macquarie says this ASX 200 mining stock could rocket 67% in a year

Macquarie forecasts a big potential rebound for this diversified ASX 200 miner.

Read more »

Female miner smiling at a mine site.
Resources Shares

3 reasons why the Fortescue share price could still be a buy

Here’s why I view Fortescue as an opportunity.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Here's the latest earnings forecast out to 2029 for Rio Tinto shares

Let’s unearth what this mining giant is predicted to achieve.

Read more »

Female miner smiling in front of a mining vehicle.
Resources Shares

Is the BHP share price a buy? Here's UBS' view

Let’s dig into what an expert thinks of this mining giant.

Read more »