Pilbara Minerals shares slip after flagging half-year loss
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Pilbara Minerals are down nearly 3% to $2.17 in early trading on the ASX after the lithium producer flagged a first-half loss amid low prices and writedowns relating to its POSCO JV and mid-stream demonstration plant project.
The group expects to report a statutory loss of $68 million to $71 million and earnings to drop to between $45 million and $49 million, down from $415 million a year ago.
Pilbara Minerals flags half-year loss as prices, writedowns weigh
The news: Lithium producer Pilbara Minerals has flagged a first-half loss after a slide in first-half earnings amid low prices and writedowns relating to its joint venture with POSCO, and its mid-stream demonstration plant project.
The numbers: The group expects to report a statutory loss of $68 million to $71 million for the first half, compared to a $220 million profit a year ago.
EBITDA is expected to be between $45 million, and $49 million, down from $415 million a year ago.
The context: The miner said its half-year result will include a non-cash reduction of $16 million in the carrying value of its call option to increase its stake in the POSCO Pilbara Lithium Solution joint venture to 30%, a share of the $22 million net loss of the PPLS JV, and demonstration plant project construction costs of approximately $24 million.
It also said the boards of both Pilbara and Calix are now discussing the resumption of construction of the demonstration project that was paused in October 2024 due to difficult lithium market conditions, following a $15 million injection of funds by the Western Australia government.
The source: ASX announcement
