Pilbara Minerals posts record Q4 production but lithium price weighs on FY24 revenue
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The news: Pilbara Minerals announced it "achieved or exceeded" its full-year guidance across production volume, unit operating cost and capital expenditure, after the lithium miner notched record production in the June quarter.
The numbers: The Perth-based group reported production of 226,200 dry metric tonnes (dmt) of spodumene concentrate during the three months to June 2024 — a 26% increase on the March quarter.
Full-year production of 725,000 tonnes came in above Pilbara's FY24 guidance range of 660,000 to 690,000 tonnes. It was also a 17% increase on the year prior.
Sales increased 43% to 235,800 dmt compared to the prior quarter, with prices up 4% to an average realised price of USD840 ($1,270) per dmt.
Sales for FY24 was at 707,100 dmt, up 16% on the prior year, however realised price for the year was 74% lower than FY23.
Revenue was up 58% quarter on quarter to $305 million, while unit operating cost of $591 per dmt was 12% lower, driven by increased production volume.
However, revenue for FY24 at $1.25 billion was a 69% fall on FY23 ($4.45 billion).
Full-year unit operating cost of $654 per tonne was within the FY24 guidance range of $600 to $670 per tonne.
Capital expenditure of $865 million also came in within guidance of $820 million to $875 million.
Pilbara set FY25 production guidance at between 800,000 to 840,000 tonnes, with an expected boost from its two major brownfields expansion projects.
The context: Pilbara said FY25 represents a "unique year" for the company, given the combination of major mine expansion activities occurring in combination with ongoing operational and efficiency improvements.
The miner's two major brownfields expansion projects comprise the ramp up of the P680 crushing and ore sorting facility, which is planned for the September 2024 quarter, and the commissioning and ramp up of the P1000 Project — which aims to increase total spodumene concentrate production capacity at Pilbara's Pilgangoora Operation — in the March 2025 quarter.
Lithium prices have plummeted over the last two years as an oversupply of the material has outweighed demand for electric vehicle batteries.
The source: ASX announcement
