(Kitco News) - On Monday, lithium producer Pilbara Minerals (ASX: PLS) announced an inaugural full year profit after tax of A$561.8M for the full-year to 30 June 2022 (full-year), buoyed by exceptionally strong global demand for lithium raw materials and positive pricing conditions.
According to a press-release, the company's full-year revenue increased by 577% to ~A$1.2Bn (FY2021: A$175.8M), with an average selling price of ~US$2,605/dmt (SC6.0, CIF China basis), which when adjusted for actual lithia content translated to a realized price of ~US$2,382/dmt (CIF China basis).
Pilbara Minerals said it recorded a full-year underlying net profit before tax and acquisition costs of A$762.1M, after recognizing A$44.9M in depreciation and amortization costs, and net financing costs of A$6.9M (excluding deferred consideration costs).
After recognizing prior year tax losses of A$66.3M (net of deferred tax balances) and expensing A$37.2M of non-cash deferred acquisition costs relating to the acquisition of Altura Lithium Operations in the previous year, the company recorded an inaugural net profit after tax for the year of A$561.8M (FY2021 full-year net loss after tax: A$51.4M).
The company said that the profit result was driven by a strong operating performance from the company's world-class Pilgangoora Lithium-Tantalum Operation in the Pilbara region of Western Australia, which delivered a gross margin from operations of A$853.5M (FY2021: A$46.2M).
Pilbara also reported full-year total shipments of 361,035 dmt of spodumene concentrate (FY2021: 281,440 dmt), of which 315,155 dmt originated from the Pilgan Plant and 45,880 dmt from the Ngungaju Plant, which was re-started, commissioned and in ramp-up during the financial year.
Managing Director and CEO Dale Henderson commented, "FY2022 has been an incredible year for Pilbara Minerals, with our Pilgangoora Operation capitalizing on the surging demand for lithium raw materials that we have experienced over the course of the year.
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"The fact that we have achieved such a strong profit result despite the significant headwinds of COVID-19, the WA mining industry's labor and supply shortages and rapid cost inflation is testament to the outstanding efforts of our employees and contracting partners, and I would like to sincerely thank them for their hard work.
"Having recently approved the expansion to grow production by a further 100,000tpa to a combined ~640,000-680,000tpa, and with the company now progressing towards a FID to expand production to 1Mtpa, Pilbara Minerals commences FY2023 in an exceptionally strong position."
Pilbara Minerals is the leading ASX-listed pure-play lithium company, owning 100% of the world's largest, independent hard-rock lithium operation. Located in Western Australia's resource-rich Pilbara region, the Pilgangoora Operation produces a spodumene and tantalite concentrate.
