Pilbara Minerals finding a way out of the woods

There’s life in Western Australia’s shell-shocked lithium mining and processing industry, according to one of its veterans, Pilbara Minerals chief executive Ken Brinsden.

Speaking at the Diggers & Dealers forum in Kalgoorlie, Mr Brinsden said the first stage of the company’s Pilgangoora project near Port Hedland represented the platform for future growth.

“The project is operating well and is a low-cost provider of lithium,” he said.

“There is the potential to expand three-fold, not that we’re planning anything like that today.”

Mr Brinsden’s talk was in line with how investment banks view the company: on the road to a sustainable recovery following a near-death experience after the price of lithium collapsed under a wall of oversupply.

In the two years from early 2018 to earlier this year, Pilbara’s share price fell by 88 per cent, from $1.20 to 14 cents.

Since that low point was reached at the height of the COVID-19 pandemic, Pilbara has climbed back to trade around 38 cents.

A series of recent corporate moves have significantly improved Pilbara’s financial position, with debt re-financed and day-to-day operations modestly profitable.

Shipments of lithium as spodumene (ore upgraded to contain 6 per cent lithium) in the September quarter were up 45 per cent on the previous quarter to 43,500 tonnes.