Posted on 23 Apr 2024
Australian miner Pilbara Minerals on Friday reported a 27% quarter-on-quarter drop in its revenue during the three months ended 31 March 2024.
The March quarter’s revenue was AUD 192 million ($123.1m), compared to AUD 264m reported in the December quarter of FY2024, Kallanish notes. The company attributed the quarterly drop to a 28% decline in average realised price, which was partly offset by a 3% increase in sales volume.
Pilbara sold 165,100 dry metric tonnes (dmt) of spodumene concentrate, compared to 159,900 dmt in the December quarter. The miner saw its production rise 2% to 179,000 dmt, from 176,000 dmt in the previous quarter.
The estimated realised price for spodumene concentrate in Q3 FY24 was $804/dmt (cif China), down from $1,113/dmt in the December quarter. Year-to-date, Pilbara reported a much steeper decline in realised price, which fell 73% on-year to $1,343/dmt.
Despite collapsing prices, company’s ceo Dale Henderson said the March quarter showed some “very positive signs” for the lithium market and that “the long-term trajectory for the market is incredibly positive.”
The top executive cited preliminary data on global EV sales in Q1 suggesting a 23% y-o-y growth, adding the demand for Pilbara’s products remains “very strong.”
“During the quarter we announced a number of significant offtake extensions. We also did an auction. All of which are markers of the strong demand of Pilbara’s products,” he adds.
Jefferies analysts said Friday Pilbara’s third-quarter outlook was “strong.”
“The current environment of improved q-o-q lithium prices coupled with production growth, as P680 adds capacity, and the company’s robust balance sheet positions the share price to outperform the lithium sector,” the analysts wrote in a note.
Source:Kallanish
