Expanded Lithium Production Levels by Pilbara Minerals Amidst a Difficult Market Conditions
In a recent announcement, Pilbara Minerals, an Australian lithium producer, has released its results for the 2025 fiscal year. The company reported an underlying net loss of AU$88 million after tax. Despite this, there were significant achievements to note.
The company's spodumene concentrate production saw a 4 percent increase, reaching 754,600 tonnes. This growth can be attributed to Pilbara's P680 and P1000 expansion projects.
Revenue for the year stood at AU$769 million, representing a 7 percent uptick year-on-year, with sales reaching 760,100 tonnes.
One of the most notable events of the year was the acquisition of Latin Resources, which incorporated the Salinas lithium project into Pilbara's portfolio. Located in Argentina, the Salinas project was renamed Colina. The resource for Pilgangoora now stands at 5.7 million tonnes of lithium oxide grading 1.28 percent lithium oxide, marking a 10 percent increase. The contained lithium oxide also rose by 23 percent.
Managing Director and CEO Dale Henderson discussed these points in his presentation at Fastmarkets' Lithium Supply & Battery Raw Materials event in June. Henderson believes the lithium market's long-term fundamentals "remain intact," with potential tightness ahead.
In a positive move for the company, Pilbara completed the acquisition of Latin Resources for AU$560 million, approved in January. The combined measured, indicated, and inferred resource of Colina and Fog's Block deposits is 77.7 million tonnes grading 1.24 percent lithium oxide, containing 948,900 tonnes of lithium oxide.
Underlying EBITDA saw a significant decrease, down 83 percent at AU$97 million. However, Henderson commented that the balance sheet remains robust.
An updated resource estimate for Colina was released on August 25, further strengthening Pilbara's position in the lithium market.
It's important to note that the author, Gabrielle de la Cruz, holds no direct investment interest in any company mentioned in this article.
The production increase, acquisition, and resource updates highlight a promising future for Pilbara Minerals in the lithium industry.
