Pilbara Minerals reports strong spodumene production

Pilbara Minerals has maintained robust production levels at its Pilgangoora lithium operation in the September quarter, despite facing pricing pressures and anticipated operational adjustments.

Production for the quarter totalled 220.1 thousand dry metric tonnes (dmt) of spodumene concentrate, a three per cent decrease from the previous quarter’s 226.2 thousand dmt.

Pilbara Minerals said this reduction in production volume was anticipated, driven by reduced plant availability due to the integration and ramp-up of the new P680 crushing and ore sorting facility.

“Production volume was better than plan, supported by the benefits of the P680 primary rejection facility and a material improvement in recoveries,” the company said.

The facility’s commissioning marks a key milestone for Pilbara Minerals, which continues to enhance its production efficiencies and processing capabilities.

The company recorded spodumene sales of 214.5 thousand dmt, with a realised average price of US$682 per dmt – a 19 per cent decline from the previous quarter – resulting in a 31 per cent drop in revenue to $210 million.

This pricing challenge reflects the broader lithium market conditions that Pilbara Minerals has acknowledged in its strategic planning.

“Unit operating costs on a FOB basis (excluding freight and royalties) increased by three per cent to $606 per dmt compared to the prior quarter,” the company said, citing lower sales volume on a per-unit basis as a primary factor.

However, the company’s continued focus on cost reduction remains evident in its optimisation efforts, with the Pilgan plant set to become the sole processing facility, while the Ngungaju plant will be placed in temporary care and maintenance.

Optimisation of the Pilgangoora operation will result in a moderate reduction in production volume by approximately 100,000 dmt for the 2024–25 financial year previous guidance, while enhancing cash flow by an estimated $200 million.