Pilbara Minerals has returned stable September quarter production results at its Pilgangoora operation in Western Australia, supported by higher lithium recoveries, improved pricing, and strong cost performance following its P1000 expansion.
The company produced 224,800 tonnes of spodumene concentrate for the period, up two per cent from the June quarter, while sales totalled 214,000 tonnes.
Averaged realised prices increased 24 per cent to $US742 per tonne – on a cost, insurance and freight (CIF) China, SC5.3 basis – equivalent to $US841 per tonne on an SC6 basis.
Revenue rose 30 per cent to $251 million, underpinned by the stronger realised prices and stable operations.
At the same time, Pilbara Minerals continued to reduce its operating costs, with unit operating costs (free on board) falling 13 per cent to $540 per tonne, driven by higher mining volumes and efficiencies gained through the company’s owner-operator model.
Lithium recoveries climbed to 78.2 per cent, up from 71.6 per cent in the previous quarter, marking the best recovery performance since the P1000 expansion.
The company also mined 1.7 million tonnes of ore and 7.7 million tonnes of total material, reflecting what it said was greater operational capacity and ore supply security heading into the wet season.
Pilbara Minerals ended the quarter with $852 million in cash and an undrawn $625 million credit facility, maintaining a strong balance sheet in the lithium sector.
Furthermore, construction of the company’s mid-stream demonstration plant in Western Australia (WA) remains on schedule for completion by December 2025.
In South Korea, the POSCO Pilbara Lithium Solution (P-PLS) joint venture continued moderated batch processing to preserve capital amid softer global demand following changes to the United States’ Inflation Reduction Act.
In this joint venture, Train 1 produced 2773 tonnes of lithium hydroxide during the quarter, while Train 2 achieved first customer certification with 2040 tonnes produced.
The partners have agreed to temporarily reduce 2026 spodumene off-take volumes to around 150,000 tonnes, providing Pilbara Minerals with the flexibility to reallocate product to other buyers.
Pilbara Minerals also progressed its downstream partnership study with Ganfeng, with both parties completing a feasibility study and extending the commercial framework to 2027 to allow more time for site selection and market assessment.
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