By Marion Rae
The collapse in lithium prices has crushed full-year profits at Australia’s leading producer, Pilbara Minerals, and denied shareholders any dividends.
The world’s largest independent hard-rock lithium operation on Monday reported an 89 per cent plunge in net profit to $257 million for the year to June 30.
The Pilbara Minerals lithium mine in Western Australia.Credit: New York TImes
Pilbara Minerals also announced commitments from a banking group for a new $1 billion debt facility to provide further financial flexibility and liquidity.
“With a resilient balance sheet, Pilbara Minerals maintains a strong competitive position relative to many peers within the sector,” chief executive Dale Henderson said.
Revenue dropped more than two-thirds (69 per cent) to $1.3 billion from a year earlier, as the average realised lithium price fell by almost three-quarters (74 per cent) to US$1176 per tonne.
Spodumene concentrate production rose 17 per cent to 725.3 thousand dry metric tonnes, and sales increased 16 per cent to 707.1 kilotonnes.
The Pilgangoora P680 Project crushing and ore-sorting facility commenced commissioning in the June quarter and the P1000 Project was on schedule and budget for completion by the March quarter of 2025, the company said.
Earnings before interest, taxes, depreciation and amortisation slumped to $538 million, from $3.3 billion a year earlier, while its cash balance halved to $1.6 billion.
Pilbara failed to declare a dividend.