By Pilbara Minerals, the Australian producer of lithium-rich spodumene, has announced a significant increase in its annual profit due to higher sales and market prices. The company reported a net profit of AUD 2.39 billion (USD 1.53 billion) for the 12 months ending in June, compared to AUD 561.8 million in the same period the previous year.
The surge in profits can be attributed to a 68% increase in sales and an approximate 87% rise in prices compared to the previous year. As a result, the directors have declared a final dividend of 14 Australian cents per share, representing 30% of the company’s free cash flow.
“Looking ahead, we anticipate a continued growth in demand for our product, although there may be some pricing fluctuations in the short term. This is due to the supply chain closely managing inventories and responding to macroeconomic conditions,” stated Chief Executive Dale Henderson.
In addition to the strong financial results, Pilbara Minerals plans to explore a potential capacity expansion following a 35% increase in its Pilgangoora ore reserves.
For fiscal year 2024, the company expects to produce approximately 660,000-690,000 metric tons of spodumene concentrate with a product grade of around 5.2%. This is an increase from the 620,100 metric tons produced in fiscal year 2023.
The projected unit operating costs for fiscal year 2024 are estimated to range from AUD 600 to AUD 670 per ton.
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