Pilbara Minerals (ASX:PLS) recently reported solid production and cost management results for the September quarter ending 30 October 2024. The company produced 220.1k tonnes of spodumene concentrate, meeting its production targets despite lithium market fluctuations. Revenue reached $210m, though down 31% from the previous quarter due to a 19% drop in realised lithium prices. CEO Dale Henderson acknowledged these market challenges, emphasising Pilbara’s focus on "optimising operational efficiencies to navigate current price pressures while maintaining production momentum".
The company also completed commissioning of its P680 crushing facility, boosting production efficiency and enabling a 75.3% lithium recovery rate. Pilbara’s newly announced P850 operational model, which optimises production around its more efficient Pilgan plant, is expected to yield an additional $200m in cash flow for FY25 by reducing costs and focusing on higher-capacity operations. The Ngungaju plant will be placed in temporary care and maintenance from December 2024, allowing the company to conserve resources for more favourable market conditions.
Additionally, Pilbara Minerals has continued to diversify its operations. The company secured a new $1bn revolving credit facility in October and advanced its joint venture with POSCO in South Korea, which produced over 1,965 tonnes of lithium hydroxide in Q3.
Looking ahead, Pilbara is set to acquire Latin Resources (ASX:LRS) in early 2025, further expanding its lithium resource base with the Salinas project in Brazil.
