Wavering lithium prices have dented Pilbara Minerals revenue and profit for the full year, partially offset by upped sales volumes, while taking on $1 billion in new debt.
Wavering lithium prices have dented Pilbara Minerals revenue and profit for the full year, partially offset by upped sales volumes, while taking on $1 billion in new debt.
The ASX-listed producer posted profit after tax of $257 million for financial year 2024, down 89 per cent compared to FY23, citing trembling prices for the battery metal.
Pilbara’s average realised price was $US1,176 per dry metric tonne for FY24, a plunge of 74 per cent compared to the average price of $US4,447 per dmt in the previous year.
Its earnings before interest, taxes, depreciation, and amortisation came in at $538 million, a drop of 84 per cent, and revenue was $1.25 billion, down 69 per cent.
Spodumene concentrate production grew 17 per cent for the full year to about 725,000 dry metric tonnes and sales increased 16 per cent to about 707,000 tonnes.
Pilbara told the market its revenue result was driven by the drop in the average realised price but was partly offset by increased sales volume due to expanded production.
During the period Pilbara kicked off commissioning of its P680 expansion project, which ups Pilgangoora’s production capacity by 30 per cent to 680,000 tonnes per annum.
Pilbara told the market it received a credit approved commitment for a new $1 billion debt facility from a group of domestic and international banks.
It said the debt facility, in the form of a revolving credit facility, would enable it to refinance its existing project debt.
The lithium producer’s cash balance was $1.6 billion, down 51 per cent. Pilbara’s board has not declared a dividend payment for the period.
“Despite the challenges posed by a softer lithium pricing environment, Pilbara Minerals maintained a robust EBITDA margin of 43 per cent, a testament to the strong operational performance and disciplined cost management of the team,” chief executive Dale Henderson said.
Earlier this month, Pilbara unveiled its $560 million move to acquire Brazilian hard rock lithium explorer Latin Resources, owner of a hard-rock lithium exploration project.
“This strategic, counter-cyclical acquisition will further diversify our business, adding a second 100 per cent owned, hard rock lithium asset that is expected to be highly accretive for our shareholders over time,” Mr Henderson said today.
Pilbara’s shares were trading down slightly 0.16 per cent to $2.97 per share.
