Pilbara Minerals reports 33pc fall in lithium prices
Pilbara Minerals expects to settle on a new partner in downstream lithium processing within the next five months as it continues to boost production at its Pilgangoora mine in Western Australia.
Dale Henderson-led Pilbara Minerals was hit by a 33 per cent drop in spodumene concentrate prices in the June quarter that took the shine of the company setting new production and sales benchmarks.
Pilbara Minerals sold its 5.3 per cent grade spodumene concentrate at average price of $US3256 ($4832) a tonne into Chinese markets in the June quarter, down from $US4840 in the March quarter.
The weaker prices were offset by record production of 162,800 tonnes at the Pilgangoora mine near Port Hedland and record sales of 176,300 tonnes.
Pilbara Minerals had predicted that prices would fall in the June quarter amid a price war between sellers of internal combustion engine vehicles and electric vehicles in China. New vehicle emissions standards were due to come into effect in China on July 1 after months of heavy discounting by petrol engine carmakers.
Pilbara Minerals reported revenue of $844 million for the quarter, down 18 per cent on the previous three months.
Across the full year, the company’s revenue jumped 238 per cent to $4 billion and production was up 64 per cent to 620,100 tonnes.
Pilbara Minerals already has an 18 per cent stake in a 43,000 tonne-a-year lithium hydroxide plant being built by POSCO in Korea and is in talks with potential partners over a second downstream plant that could access up to 300,000 tonnes a year of spodumene from Pilgangoora under its expansion plans.
The company reported strong interest from lithium converters, chemicals companies, cathode manufacturers, carmakers and battery companies.
It expects
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