Australian mining company Pilbara Minerals announced a significant increase in spodumene production and sales for the 2023-24 fiscal year, defying negative market predictions about the electric vehicle (EV) sector. The company produced 725,300 tons of spodumene, a 17% increase from the previous year, surpassing its production guidance of 660,000-690,000 tons. Sales rose by 16% to 707,100 tons, with record production and sales in the April-June quarter.
Despite these gains, Pilbara Minerals' revenues fell by 69% to A$1.25 billion ($825 million) due to a sharp correction in the lithium market over the past year. Managing Director and CEO Dale Henderson emphasized the continued strength of the EV market, noting a 20% increase in global EV sales to 7 million units by June, driven primarily by Chinese demand.
Henderson highlighted that the US market, despite its prominent headlines, represents a smaller portion of total demand. He assured that customer demand remains strong, and the company is optimistic about future market conditions as higher-cost lithium suppliers exit the market.
Pilbara Minerals plans to integrate and ramp up its P680 and P1000 projects over the coming quarters, which may temporarily affect production and costs. The company has issued a production guidance of 800,000-840,000 tons of spodumene for the 2024-25 fiscal year, with unit operating costs expected to be A$650-700 per ton.
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