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- Pilbara Minerals (PLS) continues its strong performance for FY23, logging a 326 per cent increase in profit, reaching $2.4 billion
- The company has offset lower global lithium prices by raising production and achieving a higher realised price per kiloton
- The company won the Digger of the Year award at this year’s Diggers & Dealers in Kalgoorlie
- Pilbara Minerals’ results reflect the persisting battery metals thematic
- Shares last traded at 5.11
Pilbara Minerals (PLS) has reported its annual results for FY23, posting a 326 per cent increase in profits, reaching $2.4 billion.
The company’s net profit after tax for FY22 stood at $561.8 million, driven significantly by rock spodumene auctions, which reached a record high that year.
This profit performance reinforces a broader trend – lithium has become the “new gold” in the eyes of miners.
This trend was evident at this year’s Diggers & Dealers Mining Forum, where lithium miners took centre stage as never before, with Pilbara Minerals even winning the coveted Digger of the Year award.
While major energy companies in the US are experiencing a return to normal oil and gas prices following the highs of the COVID era, Pilbara Minerals continues to generate substantial profits. This is happening even as lithium prices have receded from their peak in 2022.
A falling lithium price was offset by significantly upscaled production output. Production increased 64 per cent to 620,100 thousand tonnes. Correspondingly, sales were 68 per cent higher to 607,500 tonnes shipped.
Notably, Pilbara Minerals has also succeeded in elevating its realised price per kiloton to US$4,447, marking an impressive 87 per cent year-on-year rise.
For FY23, the company logged a 242 per cent increase in revenue to $4.1 billion. Cash reserves have seen a 464 per cent increase, culminating at $3.3 billion by the end of June, and earnings before tax soared to $3.3 billion – a 307 per cent surge compared to FY22.
Additionally, Pilbara Minerals declared a final fully franked dividend of 14 cents, resulting in a total full-year dividend of 25 cents.
Pilbara Minerals shares last traded at $5.11.
