Pilbara Minerals March 2024 Quarterly Activities Report

Operational and Financial Highlights

• Increased Production and Sales: Pilbara Minerals (ASX: PLS) reports a modest production increase of 2%, reaching 179.0 thousand dry metric tonnes (dmt) in spodumene concentrate. Sales volumes also saw a slight rise of 3%, totaling 165.1k dmt.
• Price Fluctuations: The realized price per dmt saw a significant drop of 28% from the previous quarter, settling at $804.
• Revenue and Costs: Revenue declined by 27% to $192M, affected by the lower prices but slightly cushioned by increased sales volumes. The unit operating cost (FOB) rose by 6% to $675/dmt, mainly due to the temporary use of mobile ore sorting equipment.
• Strong Financial Standing: Despite a decrease in the cash balance by 17% to $1.8 billion, the company maintains a robust financial position.

Safety and Community Engagement

• Safety Measures: The company recorded six injuries, prompting an increase in safety campaigns. Quality safety interactions surpassed targets, indicating proactive engagement in maintaining workplace safety.
• Community Initiatives: Pilbara Minerals has expanded its community engagement, establishing six new multi-year partnerships and launching a significant educational program with Foodbank WA.

Production and Sales Performance

• Record Production: March 2024 saw a record production of over 80k dmt, driven by continuous operations and improved lithium head grades.
• Stable Sales: The company managed to keep sales robust despite logistical challenges, with two significant shipments delayed to early April.

Pricing Strategies and Cost Management

• Market Adaptations: Average prices for spodumene concentrate fell initially but showed signs of recovery by the end of the quarter. A notable pre-auction sale indicates strong market demand.
• Cost Efficiency: Excluding temporary costs for mobile sorting equipment, the unit cost would have been approximately $625/dmt, showcasing the potential for cost reductions.

Strategic Project Advancements

• P680 and P1000 Developments: The P680 project is on track with its schedule, with the Crushing and Ore Sorting Facility set to start commissioning in the upcoming quarter. The P1000 project also progresses as planned, aiming to boost annual production significantly.
• Innovative Mid-Stream and Downstream Projects: Pilbara Minerals is exploring advanced processing technologies and partnerships to enhance product value and sustainability, including a joint venture to develop a downstream lithium hydroxide facility in South Korea.

Looking Forward

Pilbara Minerals continues to execute its strategic initiatives proficiently, strengthening its market position and focusing on sustainable growth. The management remains committed to operational excellence and innovation while expanding its global footprint in the lithium market.

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