Pilbara Minerals swings to half-year loss

The news: Lithium producer Pilbara Minerals has swung to a $69 million first-half loss amid low prices and write-downs relating to its investments in new growth platforms.

The numbers: The result was in the middle of its $68 million to $71 million loss guidance that the company flagged earlier this month. It had reported a $220 million profit a year ago. Earnings slumped 89% to $48 million but were within the flagged $45 million to $49 million range.

The context: The miner said its estimated realised price for spodumene concentrate averaged USD688 a tonne during the half, down 58% from a year ago. This was partly offset by sales volumes jumping 37%, but revenue still declined 44% from a year ago. The company expects production volumes for the second half to be weighted towards the June quarter as it ramps up its P1000 project, which will deliver nameplate production rate of 1 million tonnes per annum.

“Following a year of robust demand growth in 2024 with global investment in low carbon energy transition worldwide exceeding USD2 trillion, we remain highly optimistic of the long term outlook for the lithium market,” CEO Dale Henderson said.