Pilbara Minerals lifts on improved quarter
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More news: Shares in Pilbara Minerals are up 4.6% to $2.39 in early trading after the lithium producer reported better than expected production and sales in the December quarter and said revenue rose 3% as prices edged higher.
The company also said its P1000 project, which will deliver nameplate production rate of 1 million tonnes per annum, remains on budget and on schedule.
RBC Capital Markets analyst Kaan Peker was positive on the result and has an 'outperform' rating on the stock with a price target of $3.
What they said: "DecQ spodumene concentrate production and sales were ahead of expectations, so too price realisation. To note, there has been changes to two offtake agreements to better align with market pricing, which we view as a positive," Peker said in a note.
Pilbara Minerals output, sales drop in December quarter
The news: Lithium producer Pilbara Minerals has reported lower production and sales in the December quarter although revenue rose as prices edged higher.
The numbers: December quarter spodumene concentrate production was down 14% from the prior quarter to 188,200 tonnes, while sales were down 5% to 204,100 tonnes. However, the average realised price improved 3% to USD700 ($1,119) a tonne, lifting revenue by 3% to $216 million.
The context: The miner attributed the reduction in production volumes to reduced plant availability due to ramp up of the P680 crushing and ore sorting facility and the temporary placement of the Ngungaju plant in care and maintenance.
It said the P1000 project, which will deliver nameplate production rate of 1 million tonnes per annum, remains on budget and on schedule, with wet commissioning likely after the January shutdown.
Pilbara said it will continue to respond to prevailing market price reference changes to achieve market pricing by utilising review mechanisms contemplated within offtake agreements.
The source: ASX announcement
