Lithium Price Slide Leads to Pilbara Profit Declining 89 Percent

Lithium giant Pilbara Minerals reported an 89 percent profit decline on Aug. 26 amid falling commodity prices. Lithium is an essential component of electric vehicle (EV) batteries.
It owns the world’s largest hard rock lithium project, the Pilgangoora Operation, near Port Headland in Western Australia.
Meanwhile, revenue fell 69 percent to $1.254 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) slid 84 percent to $538 million. Underlying profit after tax fell 86 percent to $318 million.
On a positive note, the company maintained an EBITDA margin of 43 percent, which measures its profit in relation to its revenue.
However, she noted that as a nascent industry, price volatility was to be expected, and Pilbara worked on what they could control.
“Thanks to a strong balance sheet and a committed leadership team, Pilbara Minerals was able to achieve record production and sales in FY24, and remain committed to its operation, growth, chemicals and diversify strategy despite pricing movements.”
Conlon also indicated a positive outlook for long-term lithium demand amid the push towards net zero.
“The shift to decarbonise is continuing to gain momentum across the world and we are well positioned to be a key player in the battery materials market in support of a sustainable energy future,” she said.
During the financial year, Pilbara achieved its highest-ever production of spodumene concentrate at the 100 percent-owned Pilgangoora Operation.
In line with this production growth, Pilbara also boosted sales by 16 percent compared to the 2023 financial year. In particular, sales volumes rose 43 percent between the March and June quarters of 2024.
Meanwhile, Managing Director and CEO Dale Henderson said Pilbara delivered a “strong set of results” in the 2024 financial year, reinforcing the company’s position as a global leader in lithium production.
“Despite the challenges posed by a softer lithium pricing environment, Pilbara Minerals maintained a robust EBITDA margin of 43 percent, a testament to the strong operational performance and disciplined cost management of the team,” he said.
Pilbara started commissioning the P680 project in the June quarter, a crushing and ore sorting facility.
Henderson said the successful completion of the P680 primary rejection facility was a significant milestone, leading to record production and sales.
Looking ahead, he said 2025 promises to be another “exciting year” for Pilbara Minerals.
Investors appeared to have already priced in the declining lithium price and were reportedly expecting the result.
A recent global boost to the lithium outlook also boosted Pilbara. Lithium shares rose in the United States on Friday afternoon trade.
For example, on Aug. 23, the shares of global lithium giant Albemarle Corporation soared 4.17 percent, while Lithium Americas Corp shares jumped 3.03 percent.
Looking at the ASX lithium shares, many have fallen rapidly on the share market in the past financial year.
For example, Core Lithium shares have slumped 74 percent, Sayona Mining shares have declined 70 percent, Patriot Battery Metals shares have slid 59 percent, and Mineral Resources’ share price has dropped nearly 30 percent.