Pilbara Minerals (ASX: PLS) extends gains on earnings, inaugural dividend announcement

By - Versha Jain

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Highlights:

  • Pilbara Minerals Limited (ASX: PLS) declared its first-half earnings on Thursday post market hours.
  • PLS shares surged over 5% on Thursday before the earnings announcement.
  • The lithium miner reported 647% jump in its revenue for the first half of current financial year.

Pilbara Minerals Limited (ASX: PLS) stock has appreciated nearly 21% so far this year. The ASX-listed lithium miner announced its half-year results on Thursday, 23 February 2023, post market hours. The company reported higher production, increased profit, and an inaugural dividend, leading to a surge in PLS share price. The stock closed 1.12% higher at AU$4.530 on Friday on top of Thursday’s 5.16% gain. 

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as of 24/02/2023, 07:36:04 PM AEDT

The company reported an 83% increase YoY in its spodumene concentrate production to 309,255 dmt in H1FY23 compared to 169,235 dmt in H1FY22. 

Its revenue increased 647% in the first half of the financial year 2023, driven by the increased sale of spodumene concentrate, 286,876 dry metric tonnes (dmt), at an average realised price of approximately US$4,993 per dmt, which is a 305% increase over pcp. Average spodumene concentrate price was US$1,232/dmt in the first half of FY22.

As a result, net profit of Pilbara Minerals increased 989% to AU$1,241.9 million in H1FY23.

Substantial earnings growth boosted the company’s cash position. On 31 December 2022, it had a cash balance of AU$2.23 billion, a massive jump from 30 June 2022 cash balance of AU$591.7 million. 

Having delivered a strong half-year FY23, the company declared an inaugural interim dividend of 11 cents per share (fully franked) in line with the company’s recently released (November 2022) dividend policy requiring a dividend payout of 30% of free cash flow. 

The dividend is payable on 24 March 2023 with a record date of 03 March 2023. 

The strong performance of the Pilgangoora Project, higher spodumene concentrate prices and increasing demand for lithium raw materials have supported the company’s bottom line immensely during the latest half year and made the company share its profit with shareholders for the first time.