June 2023 Quarterly Activities Report: Pilbara Minerals Achieves Record Production and Sales

Pilbara Minerals Limited (ASX: PLS), a leading lithium mining company, reported a record-breaking quarter for production and sales in their June 2023 Quarterly Activities Report. The company's performance showcased significant growth across various key metrics.

In the quarter, production of spodumene concentrate surged by 10% to 162.8k tonnes, representing the highest production volume since commissioning. This remarkable increase was attributed to continuous improvements in processing efficiency. The total production for the entire fiscal year 2023 met the top end of the upgraded production guidance, reaching 620.1k tonnes, a staggering 64% higher than the previous year.

Source: Kapitales Research

Sales of spodumene concentrate also witnessed a substantial uptick, increasing by 22% to 176.3k tonnes in the same quarter. This growth was driven by robust customer demand and an increase in production volume. Furthermore, the company achieved an average estimated realized price of US$3,256 per dry metric tonne (CIF China) during the quarter.

While revenue for the quarter decreased by 18% due to a 33% decline in the average realised selling price, the overall FY23 revenue surged by an impressive 238%, reaching AU$4.0 billion. Pilbara Minerals demonstrated prudent cost management, with unit operating costs remaining stable or improving across different metrics. The company reported stable FOB unit operating costs at AU$628 per tonne and a 15% improvement in CIF unit operating costs to AU$976 per tonne, primarily due to decreasing royalty and shipping costs.

The strong performance reflected positively in the company's cash balance, which increased by 24% to AU$3.3 billion in Q4 FY23. This surge was driven by higher proceeds from sales offsetting an increase in capital investment.

The company also provided updates on their expansion and development projects. Notably, the P680 primary rejection facility, P1000 expansion project, and POSCO JV lithium hydroxide plant remain on schedule. Pilbara Minerals is also exploring the possibility of a downstream joint venture for up to 300,000 tonnes per annum of unallocated spodumene concentrate from the P1000 expansion.

In terms of sustainability, Pilbara Minerals reported eight recordable injuries in Q4 FY23. The company is actively engaged in community and traditional owner engagement, with a recent joint investment in a renewable energy and lithium battery project for Strelley Community. Overall, Pilbara Minerals' remarkable growth and strategic developments are positioning the company for a strong and sustainable future in the lithium mining industry.

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