Pilbara Minerals has posted its FY25 half-year results, showcasing record production and sales but facing significant revenue and profit declines due to lower lithium prices. Despite these headwinds, the company continues to strengthen its operational base, optimize costs, and advance its growth projects.
Key Takeaways:
- Record production: Spodumene concentrate production rose 28% to 408.3kt, with sales up 37% to 418.6kt.
- Revenue hit by pricing slump: Revenue fell 44% to $426M, reflecting a 58% drop in lithium prices despite higher volumes.
- Profitability squeezed: Underlying EBITDA declined 83% to $74M, and the company posted a statutory loss of $69M.
- Cost management in focus: The company placed the higher-cost Ngungaju plant into care and maintenance to preserve financial flexibility.
- Expansion projects on track: The P1000 expansion has reached first ore and is ramping up, expected to drive higher volumes and lower costs in FY26.
- Latin Resources acquisition completed: The newly acquired Colina Project in Brazil will see targeted investment for long-term value creation.
- Strong balance sheet: Cash remains robust at $1.2B, with an additional $625M in undrawn loan facilities.
- No interim dividend declared as the company focuses on maintaining financial strength.
CEO’s Perspective
Managing Director & CEO Dale Henderson highlighted the company’s strategic resilience amid pricing pressures:
“Despite challenging market conditions, we delivered record production and sales while optimizing our cost base. With the P1000 expansion ramping up and our strong balance sheet, we’re positioned to navigate the current cycle and capitalize on future price recovery.”
While lithium prices remain a challenge, Pilbara Minerals is focused on efficiency, disciplined investment, and positioning itself for long-term growth. Investors will be watching for market stabilization and the benefits of the company’s expansion projects in the coming quarters.
