Pilbara Minerals shares lose 8% despite solid results
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More news: Pilbara Minerals shares closed 8% lower after it reported strong earnings that still missed expectations and announced a boost to capital expenditure.
Rising prices and volumes lift Pilbara Minerals profit
The news: Lithium producer Pilbara Minerals has lifted its full-year profit on the back of a near doubling in price for its spodumene concentrate and a jump in sales volumes.
The numbers: Net profit for the year to 30 June more than quadrupled to $2.4 billion. Revenue more than trebled to $4.1 billion, with the miner receiving an average price of USD4447 ($6928) a tonne for its spodumene concentrate, used for the lithium chemical in EV batteries. The company will pay a final dividend of 14 cents a share.
The context: Pilbara said there is potential to boost production at its flagship Pilgangoora mine in Western Australia — the world’s largest, independent hard-rock lithium operation. The company announced a 35% increase in its ore reserves to 214 million tonnes and outlined a capital expenditure budget of up to $975 million for FY24.
What they said: “Looking forward, we expect continued growth in demand for our product with some ongoing pricing volatility in the shorter term as the supply chain continues to tightly manage inventories and responds to macro-economic conditions,” Chief executive Dale Henderson said.
The source: ASX announcement
