Pilbara Minerals upbeat on production, prices

Battery metals miner Pilbara Minerals said it recorded an uptick in spodumene prices towards the end of the March quarter, while pricing adjustments dented its cash stockpile. 

During the March quarter the ASX-listed miner produced 179,000 dry metric tonnes of spodumene concentrate, backed by its P680 project reaching nameplate production capacity.

Production volumes increased by two per cent compared to the prior three months, but production was impacted by weather events and ore supply issues. Pilbara said the challenges were rectified with record production rates in the month of March.

Pilbara’s revenue dipped 27 per cent to $192 million, compared to the last quarter, which it said reflected a 28 per cent decline in average realised price partly offset by a three per cent lift in sales volumes.

Its average estimated realised price for the quarter dropped down 28 per cent to US$804/ dmt, compared to the December quarter, but it said prices had stabilised and then increased towards the end of the three months. 

"March quarter unusual in that it was impacted by sharply declining prices in December quarter that have since stabilised," Pilbara said in its market update. 

The miner’s cash reserve was trimmed by $363 million, primarily due to pricing adjustments on the prior quarter’s shipments and continued investment in its P680 and P1000 projects, in the order of $110 million in growth expenditure.

Pilbara said excluding pricing adjustments on shipments prior to the quarter, cash margins would have been $72 million.

As of the end of March, Pilbara had $1.8 billion cash in the bank.

Pilbara Minerals’ shares dipped 1.4 per cent to $3.865 at 12PM AWST.