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Be the first with the news that moves the market- Pilbara Minerals (PLS) reports an inaugural interim profit of $114 million for the half, after demand for lithium soars
- With an increased average selling price of about US$1,250 per dry metric tonne (A$1,700), a record revenue of $291.7 million was achieved.
- At the end of the period the company’s net cash position was $14.8 million, compared to a net debt of $46.6 million recorded in the previous half
- The company says its Managing Director and Chief Executive Officer Ken Brinsden will step down from his role at the end of this year
- Shares are trading 1.97 per cent higher at $2.85 each
Pilbara Minerals (PLS) has reported an inaugural interim profit after tax of $114 million for the half , after demand for lithium soars.
The profit was largely driven by its Pilgan operation, which recorded an operating gross margin of $172.1 million.
The company shipped about 170,000 dry metric tonnes (dmt) of spodumene concentrate during the period, an increase of 49 per cent.
With an increased average selling price of about US$1,250/dmt (A$1,700), a record revenue of $291.7 million was achieved.
However, the company incurred higher than expected unit operating costs of US$486/dmt (A$666/dmt).
It attributes this to increased royalty costs, higher ocean freight costs and lower production rates.
Looking ahead, the company’s production guidance for the March quarter is between 75,000 and 90,000 dmt with total production for FY22 between 340,000 to 380,000 dmt.
At the end of the period the company’s net cash position was $14.8 million, compared to a net debt of $46.6 million recorded in the previous half.
The company has also announced that its Managing Director and Chief Executive Officer Ken Brinsden will step down from his role at the end of this year.
Commenting on the results, he said he was confident the company will show continued success.
“The current momentum in lithium markets continues to demonstrate higher price outcomes and we are very well placed to participate in this as production and sales volumes from the combined Pilgangoora Operation continue to increase,” he said.
“I am confident that a combination of hard work, innovation and focus on production growth will continue to drive our success.”
Shares were trading 1.97 per cent higher at $2.85 each at 11:12 am AEDT.
