Pilbara Minerals Share Price in Focus for June 2024

July 24, 2024 01:59 PM AEST | By Team Kalkine Media

Google News:

Pilbara Minerals Share Price in Focus for June 2024 — Image source: shutterstock

Recent News

What are next big copper projects? UBS tells when equipment makers cou...

EUR/USD poised to rack up more gains as ECB and Fed rate paths set to...

Carney launches ‘One Canadian Economy’ Act to unify trade, approvals

Trump signs orders to enhance drone defenses, support supersonic trave...

Pilbara Minerals Ltd (ASX:PLS), a leading lithium producer, has recently released its quarterly update for June 2024. The company, known for its Pilgangoora operation in Australia, reported a significant 26% increase in production, reaching 226.2 kilotonnes (kt) of spodumene concentrate. Sales also rose by 43% to 235.8 kt. The average realized price for sales was US$840 per tonne, marking a 4% increase from the previous quarter's US$804 per tonne.

The rise in both production and sales, coupled with improved pricing outcomes from price reviews with major customers, led to a 58% increase in quarterly revenue to A$305 million. Unit operating costs (FOB) decreased by 12% to A$591 per tonne, indicating improved profitability for the quarter. However, the ASX industrial stock’s cash balance decreased by 9% to A$1.6 billion.

Annual Figures

For the full fiscal year 2024 (FY24), Pilbara Minerals produced 725.3 kt of spodumene concentrate, up 17% year-on-year, and sold 707.1 kt, up 16%. Despite the increased production and sales, the realized price for lithium fell significantly to US$1,176 per tonne, a 74% decrease from FY23. Revenue for FY24 dropped 69% to A$1.25 billion, and unit operating costs increased by 7% to A$654 per tonne. The company's cash balance at the end of the year was A$1.6 billion, reflecting a 51% decline.

Developments and Future Outlook

Pilbara Minerals is advancing its operations with the construction of a mid-stream plant at Pilgangoora, aimed at enhancing its role in processing raw lithium into battery-ready material. Additionally, the P2000 pre-feasibility study indicates that production capacity at Pilgangoora could be expanded to 2 million tonnes per annum with a new plant.

For fiscal year 2025 (FY25), the company has set a production target of 800 kt to 840 kt and expects unit operating costs (FOB) to range between US$650 to US$700 per tonne. Capital expenditure is projected to be between A$615 million and A$685 million.

While the realized price of lithium is expected to potentially rise, it remains significantly lower than two years ago. The future profitability of Pilbara Minerals may benefit from any upward movement in lithium prices and stabilization in mining costs.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.