Pilbara Minerals Ltd (ASX:PLS) – which is on the lookout for lithium in Australia’s northwest – has blamed a fall in the metal’s price for its negative readings for both revenue and profit in the 2024 fiscal year, with this news causing its share price to fall and then trade flat.
PLS said its statutory profit after tax had fallen 89% to $257 million in FY24, down from $2.39 billion the previous year, while revenue had also registered a fall of 69% (to $1.3 billion in FY24).
EBITDA came in at $538 million – an 84% fall, which Pilbara blamed specifically on ‘lower realised prices’ which were ‘partially offset by lower total costs and higher sales volumes’.
Production data for the year was strong, rising 17% to 725.3 kilotonnes in FY24, up from 620.1 kilotonnes in FY23.
A negative trend in the price of lithium has dominated the market recently, with the metal falling to CNY 75,000 per tonne in August, its lowest position in more than three years.
Managing Director and CEO Dale Henderson emphasised the company’s expansion activities, and said it was still performing well, given the state of the lithium market.
“Pilbara Minerals delivered a strong set of results in the 2024 financial year, reinforcing our position as a global leader in lithium production through the disciplined execution of our strategic plan,” he said.
“The successful completion of the P680 primary rejection facility was a significant milestone, enabling record production and sales.
“The operating performance of this facility also demonstrated scale unit cost benefits that can be expected to be further improved upon with completion of the upcoming P1000
Project.
“Beyond this current expansion, the P2000 project pre-feasibility study was completed offering a potential further growth step in production for the future.
“Our strategic objective to enter lithium chemical manufacturing progressed as planned, with production commencing at the POSCO Pilbara Minerals’ JV chemical plant in South Korea.”
He added that Pilbara had also progressed a joint study with Ganfeng for a potential new downstream joint venture, as part of a wider growth strategy, and had secured commitments for a $1 billion debt facility to further the company’s financial flexibility.
At 13:08 AEST, PLS shares were trading flat at $2.98 after an earlier fall after the market opened.