Pilbara Minerals (ASX:PLS) recently reported solid production and cost management results for the September quarter ended October 30, 2024. The company produced 220.1k tons of spodumene concentrate, meeting its production targets despite fluctuations in the lithium market. Revenue reached $210 million, though down 31% from the previous quarter due to a 19% decline in realized lithium prices. CEO Dale Henderson acknowledged these market challenges, highlighting Pilbara’s focus on “optimizing operational efficiencies to address current pricing pressures while maintaining production momentum.”
The company also completed the commissioning of its P680 crushing plant, increasing production efficiency and enabling a lithium recovery rate of 75.3%. Pilbara’s recently announced P850 operating model, which optimizes production around its more efficient Pilgan plant, is expected to generate an additional $200 million in cash flow for FY25 by reducing costs and focusing on low-cost operations. greater capacity. The Ngungaju plant will undergo temporary care and maintenance from December 2024, allowing the company to conserve resources for more favorable market conditions.
Additionally, Pilbara Minerals has continued to diversify its operations. The company secured a new $1 billion revolving credit facility in October and continued its joint venture with POSCO in South Korea, which produced more than 1,965 tons of lithium hydroxide in the third quarter.
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.