Pilbara Minerals has experienced a notable decline in its share value, with a 27% drop recorded over the past six months. This decrease is partly attributed to a slump in lithium prices, which has adversely affected the firm’s recent performance. Goldman Sachs anticipates that shares may continue to face downward pressure.
The company’s strategy to ramp up production has not alleviated the investment bank’s concerns. Goldman Sachs remains cautious, pointing to an expected downturn in free cash flow. This forecast is based on the sustained pressure from lithium supply and the increased expenditures associated with growth. The bank’s outlook suggests that despite Pilbara’s efforts to increase its production capabilities, the financial burden of expansion could outweigh the benefits in the current market environment.
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Source: Economy - investing.com
