Pilbara Minerals has agreed to a pre-auction offer for a shipment of lithium spodumene concentrate at a price of \$US1106 (\$1680) per dry metric tonne (dmt).
The cargo, consisting of 5000dmt, was offered to registered participants of the Battery Material Exchange (BMX) before the scheduled auction date of March 18.
Despite receiving multiple offers, Pilbara Minerals settled on the bid of \$US1106/dmt based on a SC6.0 China equivalent basis.
The contracted shipment is set for the December 2024 quarter due to the company’s pre-existing offtake agreements. Consequently, Pilbara Minerals’ production volumes for the year 2024 are now substantially committed.
The company announced on the ASX that regular spot sales through BMX in 2024 are improbable due to these allocations.
Pilbara Minerals plans to evaluate various sales channels for any future unallocated production to ensure shareholder value maximization. These channels include offtake contracts, closed tenders, auctions, and other commercial strategies.
This sale marks a decrease from the company’s record offtake price in November 2022, which was \$US8575 (\$13,031)/dmt, mirroring the recent dip in lithium market prices.
