Pilbara Minerals (ASX: PLS) - An emerging lithium play with substance

Gavin Wendt

There is little doubt that lithium remains the hottest commodity within the resource sector at the present time. Along these lines, Pilbara Minerals (ASX: PLS) remains our stand-out exposure - despite having already risen by 280% since our initial coverage just seven months ago. Importantly, there's more to the story than just speculative hype - with the keys to the company's success being largely fundamental. It boasts a high-quality,large-scale lithium project situated in a low-risk jurisdiction, with appraisal activity resulting in rapid project advancement. Over recent months the company has released a robust project Pre-Feasiblity Study (PFS), implemented a $100m equity raising to fund project development, and released further drilling results that point to a significantly enhanced resource position. We anticipate the release of the project Definitive Feasibility Study (DFS) during July 2016, with first production planned for 2018.


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