Currently, the Pilbara Minerals stock is somewhat volatile with highs at $5.65 and lows at $4.23. At the moment, indicators suggest neutrality.
Overview
Pilbara Minerals is an Australian mining company that works with tantalite and lithium. In January 2005, Portland International was transformed into Pilbara Minerals. As an online and over-the-phone sports bookmaker, it started trading in August. In September 2007, after changing its name to Marginbet in April 2007, the Australian Securities Exchange listed the company. Altura lithium project in Western Australia was purchased by Pilbara Minerals in 2020; it is currently a part of the Pilgangoora Operation.
Financials
Comparing the financial year ended on the 30th of June 2022 versus 2021. Revenue grew by 577% from $175m in 2021 to $1.19bn in 2022 and gross profit grew to $809m from $20m. Total comprehensive profit for the period after tax and expenses came in at $563m, a huge improvement from $-51m in the prior year. As a result, earnings per share came in at a whopping $18.98 compared to $-2 in 2021. Furthermore, in 2022 EBITDA was reported at $813.5m and cash at the bank at $874m, with total equity coming in at $1.3bn for the year.
Technicals
From a technical overview, the company’s shares are currently trading at $4.62 a share. At this moment in time, the price is based in the ‘low zone’ of the stock as it is near its all-time lows. Support sits at $4.55 then at $4.51 then at $4.42. A break below these points could see the share price decline towards the key support level at $4.23. Towards the upside, resistance sits at $4.68 (upper trendline of the lower rectangle), then at $4.79 then at $4.84. A break above these price levels may see the stock gain surging momentum and start heading towards the upper rectangle, which is where the very highs are currently based. This is more likely in the short/mid-term. Looking at the indicators, MACD is slightly positive but turning neutral and RSI reads 44, just negative.
Summary
On the basis of the financials, the company is showing some great progress year-on-year with huge jumps in both revenue and profit. In the space of a year, it turned all the negative figures into positive ones and raised the bar for 2023. Looking at its operations and improvements YoY, it should continue this progress into the following financial year. Based on the technical side, the stock is quite volatile at this moment in time, very rangebound between its very highs and very lows. Currently, the share price does sit near its lows, hence, a bounce higher could be due in the short term. Although, investors should be wary as the indicators are strongly in a neutral position and the direction of the price is unclear. The long-term outlook, considering the company keeps up the good work on the financial side, would be bullish.
