Pilbara Minerals swoop on Roy Hill camp for Pilgangoora Lithium project

Pilbara Minerals have snapped up Roy Hill’s Rail Camp 3, just 90kms down the road from the soon-to-be developed Pilgangoora Lithium project near Port Hedland.

Roy Hill’s 300-person camp comes complete with high standard accommodation, a gym, recreation facilities and a wet mess however the camp is surplus to the needs of Gina Reinhart now that construction of the Roy Hill railway line to Port Hedland is complete.

A purchase price was not disclosed however Pilbara Minerals did announce the deal was made at a cost competitive price, no doubt providing a significant capital saving for the Pilgangoora project compared to current replacement costs.

The deal also fits well with Pilbara Minerals’ plans for a fast-track development of its world-scale Lithium project.

Managing director, Ken Brinsden, said “The purchase of the camp presents an opportunity to establish a rapid site presence which will facilitate early works designed to support the company’s fast-track development strategy for the Pilgangoora project.”

We would like to thank the Roy Hill team for completing the agreement for the camp in an open and co-operative manner. This is a positive milestone for the Pilgangoora project and marks another step towards the development of one of the more significant new resource projects in WA.”

The move will start as soon as possible with the relocation of 56 rooms and all amenities, with all remaining rooms to be transported in a second stage. The objective is to have the camp fully commissioned at Pilgangoora by the end of April.

The deal caps off a great week for Pilbara Minerals that included a settlement of their long running off take dispute with Mineral Resources and a subsequent bounce in share price.

All eyes are now focused on the $214 million development phase, with the project on track to begin construction in a matter of weeks and reach commissioning in late 2017.

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Share Price

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BN30 Index

Index = 100 as of 4 Jan 2016
Source: Morningstar

Total Shareholder Return as at 30/11/18

1 year TSR5 year TSR
370thBuru Energy-11%-29%
441stPilbara Minerals-20%138%
624thMatsa Resources-48%-13%
664thTriangle Energy Global-54%-22%
741 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
Source: Morningstar

Share Transactions

$70k Bought
$900k Bought
$900k Other
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55th↑Pilbara Minerals$15.3m
56th↑Triangle Energy Global$13.8m
58th↑Buru Energy$12.7m
60th↑Matsa Resources$11.7m
509 listed resources companies ranked by revenue.
Source: Morningstar

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