The Pilbara Minerals Ltd (ASX: PLS) share price had a tough time on Monday.
The lithium miner's shares sank almost 6% to $4.59 amid broad weakness in the battery materials industry.
Shareholders will no doubt be hoping that the after-market release of the company's quarterly update is the catalyst to getting its shares heading in the right direction again.
Let's take a look at what Pilbara Minerals reported for the fourth quarter of FY 2023.
Pilbara Minerals share price on watching following Q4 update
- Quarterly revenue down 18% to A$800 million
- Production up 10% quarter on quarter to 162.8k tonnes of spodumene concentrate
- Quarterly sales volumes up 22% to 176.k tonnes of spodumene concentrate
- Average realised spodumene concentrate sales price down 33% to US$3,256 per tonne
- Unit operating costs down 15% to US$976 per tonne
- Cash balance increased 24% to A$3.3 billion
What happened during the quarter?
For the three months ended 30 June, Pilbara Minerals delivered a 10% increase in spodumene concentrate to 162.8k tonnes. This is the strongest production result since commissioning, driven by continued improvements in processing.
This means that Pilbara Minerals achieved the top end of its upgraded production guidance in FY 2023 with 620.1k tonnes of spodumene concentrate.
Sales of spodumene concentrate increased 22% during the fourth quarter to 176.3k tonnes thanks to ongoing customer demand. However, that demand couldn't keep lithium prices strong. Pilbara Minerals reported a sizeable 33% decline in its average realised price to US$3,256 per tonne. This led to quarterly revenue falling 18% to approximately A$800 million.
For the full year, the company's sales volumes grew 68% year on year to 607.5k tonnes. And with an average realised price 87% higher since FY 2022 at US$4,449 per tonne, this underpinned a 238% increase in revenue to A$4 billion.
Unit operating costs reduced 15% on a CIF basis to A$976 per tonne for the quarter. This was primarily due to declining royalty and shipping costs. For the full year, costs were up 29% to A$1,091 per tonne.
Outlook
No guidance or management commentary has been provided with this update. Investors may want to watch out for the analyst call tomorrow or its audited full-year results next month.
The Pilbara Minerals share price is up 81% since this time last year.
