Pilbara lithium posts inaugural good profit on strong lithium demand
Lithium producer Pilbara Minerals has announced an inaugural full year profit after tax of A$561.8M for the full-year to 30 June 2022, buoyed by exceptionally strong global demand for lithium raw materials and positive pricing conditions.
The company’s full-year revenue increased by 577% to ~A$1.2Bn (FY2021: A$175.8M), with an average selling price of ~US$2,605/dmt (SC6.0, CIF China basis), which when adjusted for actual lithia content translated to a realized price of ~US$2,382/dmt (CIF China basis).
After recognizing prior year tax losses of A$66.3M (net of deferred tax balances) and expensing A$37.2M of non-cash deferred acquisition costs relating to the acquisition of Altura Lithium Operations in the previous year, the company recorded an inaugural net profit after tax for the year of A$561.8M (FY2021 full-year net loss after tax: A$51.4M).
Pilbara Minerals said that the profit result was driven by a strong operating performance from the company’s world-class Pilgangoora Lithium-Tantalum Operation in the Pilbara region of Western Australia, which delivered a gross margin from operations of A$853.5M (FY2021: A$46.2M).
Pilbara also reported full-year total shipments of 361,035 dmt of spodumene concentrate (FY2021: 281,440 dmt), of which 315,155 dmt originated from the Pilgan Plant and 45,880 dmt from the Ngungaju Plant, which was re-started, commissioned and in ramp-up during the financial year.
