The Pilbara Minerals Ltd (ASX: PLS) share price is sinking today, falling 7.67% to $2.04 in afternoon trade.
This comes after the company released its FY21 full-year results after the market close yesterday.
Wasn't it supposed to be a great year for lithium?
FY21 has seen a major turnaround for the lithium sector, underpinned by an improvement in lithium spot prices and an uplift in demand for raw materials.
Pilbara Minerals highlighted a significant increase in demand from customers during the second half of the year. This supported a total FY21 spodumene concentrate shipment of 281,440 dry metric tonnes (dmt) (compared to 90,768 dmt in FY20).
The increase in shipments and higher spot prices doubled revenues from $81.4 million in FY20 to $175.82 million.
The uplift in demand enabled better utilisation of its processing plant. In addition, Pilbara Minerals also completed several key process plant improvements which helped increase feed, utilisation, and lithium recoveries.
Despite the strong operational and top-line performance, Pilbara Minerals recorded a $51.4 million loss (FY20: $99.3 million loss).
Looking ahead, Pilbara Minerals forecasted a spodumene concentrate production of 460,000 to 510,000 dmt and shipments of 440,000 to 490,000 dmt.
Despite a solid operational performance and production outlook, the Pilbara Minerals share price has pulled back sharply on Friday.
Broader lithium sector selloff
The Pilbara Minerals share price is swimming against the tide today, following a broader selloff for the ASX lithium sector.
Large-cap peers such as Orocobre Limited (ASX: ORE), Mineral Resources Limited (ASX: MIN) and Vulcan Energy Resources Ltd (ASX: VUL) have tumbled 5.53%, 0.95%, and 4.49% respectively.
Emerging players are also feeling the selling pressure with names such as Piedmont Lithium Inc (ASX: PLL) and Charger Metals NL (ASX: CHR) down a respective 3.92% and 2.86%.
Pilbara Minerals share price snapshot
The Pilbara Minerals share price is up 136% year-to-date.
The company's shares have topped out this month, down 15% from their 11 August all-time high of $2.46.
