Here's why Pilbara Minerals shares will be in the spotlight this week

This lithium miner is releasing its eagerly anticipated quarterly update this week.

| More on:
asx share price on watch represented by investor looking through magnifying glass

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

It looks set to be a big week for Pilbara Minerals Ltd (ASX: PLS) shares.

That's because later this week, the lithium giant will be releasing its highly anticipated third-quarter update.

Ahead of the release on Thursday, let's take a look to see what the market is expecting from the company.

Pilbara Minerals shares on watch ahead of quarterly update

According to a note out of Goldman Sachs, its analysts are expecting Pilbara Minerals to deliver spodumene production of 155kt during the third quarter. This would be down from 162kt during the second quarter but a touch ahead of the consensus estimate of 148kt.

Pleasingly, the broker believes that its sales volumes will be stronger quarter on quarter. It has pencilled in spodumene sales of 170kt for the three months, which is up from 149kt in the previous quarter. It is also ahead of the consensus estimate of 161kt.

And while Goldman expects Pilbara Minerals to report a slightly softer realised spodumene price of US$5,495 per tonne (Q2: US$5,668 per tonne), this is once again ahead of the consensus estimate of US$5,209 per tonne.

Finally, the broker also believes that the company's costs will be better than expected. It is forecasting cash costs of US$623 per tonne (Q2: US$579), whereas the consensus is for a jump to US$865 per tonne.

However, despite this positive view on its performance, Goldman only currently has a neutral rating and $4.20 price target on Pilbara Minerals shares.

Motley Fool contributor James Mickleboro 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 Scott Phillips.

More on Resources Shares

A mining worker wearing a white hardhat and a high vis vest stands on a platform overlooking a huge mine, thinking about what comes next.
Dividend Investing

BHP shares have fallen out of the global top 20 dividend payers. Here's why

Global dividends continue to climb.

Read more »

Miner standing in front of a vehicle at a mine site.
Resources Shares

Is the worst now over for Mineral Resources shares?

What's next for the miner?

Read more »

A miner holding a hard hat stands in the foreground of an open cut mine
Resources Shares

A close look at BHP shares. What is the mining giant's next move?

Let's take stock of what the experts think.

Read more »

Miner looking at a tablet.
Resources Shares

Short bets on Pilbara Minerals shares are declining. Is now the time to buy?

Could the trade be unwinding?

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

'I hate what I have done': Mineral Resources share price down as Ellison laments actions

Managing Director Chris Ellison says he deeply regrets the impact of his 'error of judgement'.

Read more »

A man in shirt and tie uses his mobile phone under water.
Resources Shares

The Lake Resources share price is sinking yet again. Here's why

The longer-term downtrend continues.

Read more »

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

With a P/E ratio of 6, is the Fortescue share price a bargain?

Let’s dig into whether Fortescue shares are good value or not, in my eyes.

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

Down 15% this year, where's the next stop for Rio Tinto shares?

Where to next for the miner?

Read more »