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Pilbara Minerals raise $132m for W.A Lithium mine

Pilbara Minerals have raised US$100 million through a bond issue to complete the bulk of the financing for their 100%-owned Pilgangoora Lithium-Tantalum project near Port Hedland.

The success of the bond issue represents a major shot in the arm for Pilgangoora, which hosts one of the worlds largest hard rock Lithium resources in W.A.

According to the company, the bond issue closed fully subscribed with strong demand from large Australian and international funds.

The five-year bonds will attract a coupon or interest rate of 12%, a reasonable number given the greenfields nature of the project and the fact that the global lithium market is still new territory for many financial institutions.

Norway-based investment bank Pareto Securities was sole manager of the bond issue, its first in Australia since setting up shop in Perth three years ago.

The US$100 million (A$132 million) in funds raised covers the lion’s share of funding for the A$234 million project. There is now only a small funding gap to be filled, given that Pilbara already had AUD$65 million in cash at the end of the March quarter and is entitled to a prepayment of at least US$20 million under an offtake agreement with Chinese company Ganfeng.

Pilbara Minerals Managing Director, Ken Brinsden, said: “We are very pleased with the response from debt investors in the book-build process for this bond issue. This represents a strong endorsement of the Pilgangoora project’s outstanding economics and credentials as one of the largest and most important new hard rock lithium and tantalum projects in the world.”

The fast-track development path pursued by Pilbara Minerals means the company has already secured all the approvals it needs to get the project underway and it is now poised to move into full-scale development. 

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Share Price

Closing price for the last 90 trading days
Source: Morningstar

BN30 Index

Index = 100 as of 4 Jan 2016
Source: Morningstar

Total Shareholder Return as at 29/06/18

1 year TSR5 year TSR
98thPilbara Minerals128%135%
408thBulletin Resources6%59%
759thGBM Resources-58%-26%
815thEden Innovations-76%43%
819thTasman Resources-78%-2%
722 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
Source: Morningstar

Share Transactions

19/04/18
$900k Bought
19/04/18
$900k Other
22/12/17
$0 Issued
Total value as at the date of the transaction
Source: Morningstar

Revenue

94th↑Pilbara Minerals$2.1m
121st↓Tasman Resources$1.0m
123rd↓Eden Innovations$957k
125th↑Bulletin Resources$928k
126th↓GBM Resources$855k
507 listed resources companies ranked by revenue.
Source: Morningstar

Remuneration from Pilbara Minerals

16thKen Brinsden$1.947m
Ranked by total remuneration from all listed WA companies

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