Pilbara Minerals' profit dives and cancels dividend
Make us a preferred source
Make us a preferred source on Google
The news: Pilbara Minerals took a 90% hit in the 2024 financial year leading the lithium producer to cancel its dividend, as lithium prices weighed heavily on its earnings card.
The numbers: Statutory profit after tax dropped 89% from $2.39 billion in FY23 to $257 million, falling further than average analysts' estimates of $308.5 million, according to Visible Alpha data.
EBITDA fell 84% to $528 million while revenue lowered 69% to $1.25 billion. The company said that the hits to earnings and revenue reflected a 74% decline in average realised price, partly offset by a 16% increase in sales volume and lower total costs.
Full-year production of 725,000 tonnes was a 17% increase on FY23, and came in above Pilbara's FY24 guidance range of 660,000 to 690,000 tonnes.
The context: The company did not declare a final dividend "to preserve the group's balance sheet strength" while investment in the miner's two major brownfields expansion projects P680 and P1000 continue. Last year the board declared a total dividend of 25 cents per share.
Pilbara Minerals, which saw shares lower earlier this month after agreeing to buy ASX minnow Latin Resources, said that the focus of FY25 will be to extend its low cost position as a scale operator and maintain disciplined capital deployment to scale the operation "in lock-step with lithium market growth".
What they said: "Despite the challenges posted by a softer lithium pricing environment, Pilbara Minerals maintained a robust EBITDA margin of 43%, a testament to the strong operational performance and disciplined cost management of the team," said managing director and CEO Dale Henderson.
The source: ASX announcement
