Pilbara Minerals Limited (ASX: PLS) has released a business and earnings update for the half-year ending 31 December 2024, highlighting record production and sales volumes at its Pilgangoora Operation, alongside continued investment in its growth platforms.
Despite strong operational performance and cost reductions under the P850 operating model, Pilbara Minerals anticipates an underlying EBITDA of $71 million to $75 million, with an underlying net loss after tax of between $5 million and $7 million.
Financial performance and investment impact
The company’s statutory results reflect its investment in key strategic projects, including the POSCO Pilbara Lithium Solution joint venture and the midstream demonstration plant project. These investments contributed to a statutory EBITDA of $45 million to $49 million and an expected statutory net loss after tax of $68 million to $71 million.
Key financial impacts include:
- A $16 million non-cash reduction in the carrying value of Pilbara Minerals’ call option to increase its stake in the PPLS joint venture from 18 percent to 30 percent
- A $22 million share of net loss from the PPLS joint venture, primarily due to lower lithium hydroxide prices and inventory adjustments
- $24 million in construction costs for the midstream demonstration plant project, which were expensed during the period
Operational updates and growth strategy
Pilbara Minerals completed its P680 expansion project on time and within budget, and post-period, construction of the P1000 expansion project was finalised, with first ore achieved on 31 January 2025.
The PPLS lithium hydroxide facility in South Korea continues its ramp-up phase:
- Train 1 achieved first product certification in November 2024 and has commenced battery-grade lithium hydroxide sales
- Train 2 ramp-up has begun, with certification expected in the second half of 2025
Midstream demonstration plant and government support
Construction of the midstream demonstration plant project was previously paused due to lithium market conditions and pending government support. In January 2025, the Western Australian government awarded $15 million in funding through its investment attraction fund to support the project. Discussions between Pilbara Minerals and Calix Ltd are now underway regarding resuming construction, with completion targeted for the December quarter of 2025.
CEO comments and outlook
Pilbara Minerals managing director and chief executive officer Dale Henderson remains optimistic about the company’s growth strategy despite current market challenges.
“PLS delivered a strong set of operating outcomes for the first half. This included achieving a new record for total production and sales from the Pilgangoora operation along with delivering the P680 project on time and on budget. The underlying EBITDA and net result after tax reflect these achievements,” Henderson said.
“Beyond our core business, we advanced our chemicals strategy to increase our exposure to value-added battery chemicals while further diversifying our supply chain. These projects continue to reflect the effects of current lower market pricing, development costs, and ramp-up expenses. We remain very positive about the long-term potential of these strategic investments and both projects offer a staged investment pathway for future scale-up at PLS’ discretion.”
Pilbara Minerals maintains a strong cash position of $1.2 billion as of 31 December 2024. The company continues to align its investment strategy with market conditions, focusing on incremental growth and maintaining financial flexibility.
