The following is a summary of the Pilbara Minerals Ltd (PILBF) Q3 2024 Earnings Call Transcript:
Financial Performance:
Pilbara Minerals reported production volumes of 179,000 tonnes at a unit cost of USD 440 per ton or AUD 675 per tonne, improving from the first half cost of AUD 691 per tonne.
The company had AUD 1.8 billion cash on hand and a positive cash margin from operations, adjusted for final price adjustments of previous quarter shipments, of AUD 72 million.
Capital expenditure of AUD 110 million was spent on the P680 and P1000 expansion projects as part of the AUD 170 million cash outflows for the quarter.
Business Progress:
The company made steady progress against its strategy, focusing on cost and balance sheet management, efficient production, and steady sales volume throughout the quarter.
Key partnerships were formed with chemical conversion customers Shanshan, Ganfeng, and Yahua for medium-term supply sales.
Initiated a feasibility study with Ganfeng and commissioned Lithium Hydroxide production with POSCO as part of joint ventures.
Indications of a positive market direction were seen with a 27% price increase of spodumene concentrate in the past 60 days and strong demand for Pilbara's products.
Operational efficiency reflected in an exit run rate with a throughput of 380 tons per hour and recoveries trending above 70% in April.
Aggressively worked on reducing inventory backlog, with two shipments decreasing the backlog by 30,000 tonnes.
The company aims to maximize and realize value for shareholders, leveraging on their operating track record, low-cost position, and strong balance sheet.
More details: PILBARA MINERALS LIMITED IR
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