Pilbara Minerals (PLS) has achieved first ore at its P1000 project in Western Australia on-time, while reporting record production and sales volumes for the wider Pilgangoora operation.
PLS’ underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the first half of the 2024–25 financial year is expected to be $71–$75 million.
The company is expecting a net loss after tax of $5–$7 million, which it said reflects cost reductions made from the P850 operating model.
“PLS delivered a strong set of operating outcomes for the first half,” Pilbara managing director and chief executive officer Dale Henderson said.
“This included achieving a new record for total production and sales from the Pilgangoora operation along with delivering the P680 project on-time and on-budget. The underlying EBITDA and net result after tax reflect these achievements.”
PLS continues to invest in its long-term battery chemicals strategy, with the POSCO Pilbara Lithium Solution joint venture (PPLS JV) and the mid-stream demonstration plant project progressing despite financial headwinds.
The company reported a $16 million non-cash reduction in the carrying value of its call option to increase its stake in the PPLS JV, a $22 million net loss after tax for the JV, and $24 million in feasibility expenses for the mid-stream demonstration plant project.
Despite these near-term financial impacts, PLS maintains a strong cash balance of $1.2 billion as of December 31 2024.
“Beyond our core business, we advanced our chemicals strategy to increase our exposure to value-added battery chemicals while further diversifying our supply chain,” Henderson said.
“During the period, the PPLS JV and mid-stream demonstration plant project progressed through their ramp-up and development phases respectively.
“These projects continue to reflect the effects of current lower market pricing, development costs or ramp up costs as shown in the expected results.”
With first ore from P1000 now achieved, PLS is moving forward with its expansion strategy, reinforcing its role in the global lithium supply chain.
“We continue to be excited about the long-term outlook for the lithium market and will grow the business in step with market dynamics,” Henderson said.
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