Pilbara Minerals isn’t deterred by the softening of lithium prices, holding its finances steady and squirreling away expansion projects for the commodity’s triumphant return.
The company ended the 2023–24 financial year (FY24) with $1.6 billion, having invested heavily in the growth of its P680 project, part of the Pilgangoora operation near Port Hedland in Western Australia.
“Pilbara Minerals delivered a strong set of results in the 2024 financial year, reinforcing our position as a global leader in lithium production through the disciplined execution of our strategic plan,” Pilbara Minerals managing director and chief executive officer Dale Henderson said.
“The successful completion of the P680 primary rejection facility was a significant milestone, enabling record production and sales.
Beyond the current expansion, a project pre-feasibility study was completed for Pilgangoora’s P2000 prospect, offering a potential further growth step in production for the future.
Pilbara’s strategic objective to enter lithium chemical manufacturing also progressed as planned in FY24, with production commencing at the POSCO-Pilbara Minerals’ joint venture (JV) chemical plant in South Korea.
“We also advanced our joint study with Ganfeng for a potential new downstream JV, which remains on track and aligned with our long-term growth strategy,” Henderson said.
Despite the challenges posed by a softer lithium pricing environment, Pilbara Minerals maintained a robust EBITDA margin of 43 per cent, which Henderson described as “a testament to the strong operational performance and disciplined cost management of the team”.
“Subsequent to the end of the financial year Pilbara Minerals has received credit approved commitments from a banking group for a new $1 billion debt facility which will enable Pilbara Minerals to mature its capital structure providing further financial flexibility and liquidity,” he said.
“With a resilient balance sheet, Pilbara Minerals maintains a strong competitive position relative to many peers within the sector.”
Earlier this month, Pilbara announced a binding scheme implementation agreement for the acquisition of Latin Resources.
“This strategic, counter-cyclical acquisition will further diversify our business, adding a second 100 per cent owned, hard rock lithium asset that is expected to be highly accretive for our shareholders over time.”
Henderson said FY25 promises to be another exciting year for Pilbara Minerals.
“The focus will remain on building on our strengths; extending our low-cost position as a scale operator; disciplined capital deployment to scale the operation in lock-step with lithium market growth and preserving our strong balance sheet,” he said.
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