Pilbara Minerals reports sustained production and a 27% drop in revenue in the March quarter

On 19 April, Pilbara Minerals reported its March quarter performance with 179,000 dmt of spodumene concentrate produced at an operating cost (FOB) of US$444 per tonne. P680 and P1000 expansion projects are on schedule and budget.

Despite a decrease in revenue to A$192 million due to a 28% fall in the average realized price of spodumene concentrate at US$804 per tonne, the company remains financially robust with a cash balance of A$1.8 billion.

The Q&A session mainly focused on the company’s operational efficiencies, inventory management, and the flexibility of off-take agreements. Management detailed the use and future phase-out of mobile ore sorters while ramping up at the P680 facility. The discussion also touched on the aim to avoid stockpiling while managing approximately 60,000 tonnes of inventory to align with production and market demand. Additionally, the offtake agreements mechanism is discussed in terms of flexibility and stability in sales volumes amidst market volatility.

Author: Hongqiu Su | Battery Metals Analyst Associate | London Office, Shanghai Metals Market
Email: lilysu@smm.cn