Pilbara shares jump despite production drop
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More news: Pilbara Minerals shares were up 2.7% to $1.41 by 1:05pm AEST despite it reporting lower production and sales in the March quarter.
UBS analysts said production impacts during the quarter were one-offs and they expect material improvement during the June quarter. This would see Pilbara on track for its FY25 production guidance.
However, the analysts trimmed their price target on the stock by 13% to $1.30 while retaining their 'neutral' rating.
Over the past 12 months, Pilbara shares have dropped 63.28%.
Pilbara Minerals output, sales drop in March quarter
The news: Lithium producer Pilbara Minerals has reported lower production and sales in the March quarter after putting its Ngungaju plant in WA in care and maintenance.
The numbers: March quarter spodumene concentrate production was down 34% from the prior quarter to 125,000 tonnes, while sales were down 39% to 125,500 tonnes. However, the average realised price improved 7% to USD747 ($1,172)a tonne. Revenue was down 30% to $150 million.
The context: The miner attributed the reduction in production volumes to reduced plant availability due to the placement of the Ngungaju plant in care & maintenance and the impact of Tropical Cyclone Zelia. It said the tie-ins and ramp up of the P1000 project, which will deliver nameplate production rate of 1 million tonnes per annum, were completed to plan and the project remains on budget and on schedule, with wet commissioning likely after the January shutdown.
The group reaffirmed FY25 guidance and said it has continued to focus on cost reduction with a dedicated team identifying and implementing cost reduction initiatives across the group.
The sources: ASX, UBS research
