Pilbara Minerals expects to swing to first-half loss

Australia’s Pilbara Minerals said on Monday it expects to swing to an underlying loss for the first half, as it placed one of its two processing plants in care and maintenance due to a steep drop in lithium prices.

A nearly 86% plunge in the price of the metal, used in electric vehicle batteries, from its November 2022 peak has forced companies to either curtail operations or delay expansion of their lithium producing mines.

Pilbara placed its lower capacity and higher cost Ngungaju plant in Pilgangoora into care and maintenance in December, and focused on ramping up its Pilgan plant.

The average realized sales price for spodumene concentrate, used to make lithium, was $688 per tonne for the six months ended December 31, more than half of $1,645 per tonne it earned in the prior year.

The pure-play lithium miner expects an underlying after-tax net loss for the first half of A$5 million ($3.12 million) to A$7 million. It reported an underlying profit of A$273 million last year.

On a statutory basis, it expects an after-tax net loss of A$68 million to A$71 million, compared with a profit of A$200 million last year.

The statutory results include construction costs associated with its demonstration plant project, and the company’s share of net loss from its joint venture with POSCO reflecting ramp-up phase and current lower market prices for lithium hydroxide, it said.

($1 = 1.6033 Australian dollars)

(By Himanshi Akhand; Editing by Richard Chang)