Pilbara Minerals Announced Records 1H FY2023 Results; NPAT grew 989%.

Highlights:

• Pilbara Minerals has reported an astounding 1,091% increase in half-year earnings year-on-year.
• The surge in Pilbara Minerals' share price is mainly attributed to the increase in sales revenue.
• Pilbara has a positive outlook.

On 24 February 2023, Pilbara Minerals (ASX: PLS), an ASX-listed lithium stock, settled at AU$4.530, up 1.116% from the previous close. The shares continued to move up for the subsequent two days. The major factor behind this astonishing performance is the fact that Pilbara announced its half-year result on Wednesday, 23 February 2023.

During the period, the Company's profit was supported by a record operating performance from the top Pilgangoora Project, and constant positive pricing conditions for spodumene concentrate as global demand for lithium raw materials continued to grow.

In 1H FY2023, the Company produced a total of 309,255 dmt of spodumene concentrate, which was 169,235 dmt in the previous corresponding period subsequent to the successful ramp-up of the Ngungaju Plant. The production was further improved after adopting a production and marketing plan that aims to maximise sales volumes by intentionally aiming a lower product grade to optimise product yield and maximise concentrate production.

He also stated that the strong financial performance provides the Company with a great platform to support its growth and diversification strategy to become a leading, sustainable battery materials supplier.

1H FY2023 highlights:

• Revenue increased by 647%to AU$ 2,180.1 million. The growth in the revenue was driven by the sale of 286,876 dmt of Spodumene concentrate at an average realised price of ~US$4,993/dmt.
• EBITDA grew by 1091% to AU$1,811.5 million. The strong operational performance provided the basis for a substantial increase in EBITDA.
• NPAT improved by 989% AU$1,241.9 million.
• Basic EPS increased by 975% to AU41.59 cents/share.
• PLS announced an interim dividend of AU11 cents per share fully franked, payable on 24 March 2023.
• The strong operational performance strengthened the financial strength of the Company. By the end of the 1H FY2023 period, the Company's net position stood at AU$2.23 billion. After allowing for secured debt, was AU$2.08 billion as at 31 December 2022.

1H FY2023 Operational Highlights:

• Spodumene concentrate increased by 83% to 309,255 dmt.
• PLS shipped 286,876 dmt of Spodumene concentrate an increase of 68%.
• The average realised selling price improved by 305% to US$4,993/dmt.

Outlook:

In FY2023, the Company expects a dividend payout ratio between 20%-30% of free cash flow. The Company's Capital Management Framework is structured to support growth and diversification, with current strong cashflows able to be allocated to organic and inorganic growth opportunities.

Spodumene Concentrate production is expected to be between 600-620,000 dmt. The Company's production and marketing strategy for FY2023 is focused on maximising sales volumes by targeting a lower product grade to improve product yield as well as maximise concentrate production.

Costs are anticipated to be higher during FY2023 due to higher strip ratios in aid of additional investment in mining activities, labour shortages in the WA mining sector, supply chain disruptions, general inflationary cost pressures, and added costs to complete the Ngungaju plant ramp-up to approx. 180-200ktpa.

Bottomline:

The Company aims to be the leader in providing sustainable battery mineral products. It aims to attain the full potential at Pilgangoora and diversify revenue beyond Pilgangoora. With strong results and a positive outlook, the Company is positioned firmly amid its peer companies.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com