Pilbara Minerals share price pushes higher despite $69m half-year loss

Let's see how this lithium miner performed during the first half.

| More on:
A man looking at his laptop and thinking.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Pilbara Minerals Ltd (ASX: PLS) share price is pushing higher on Thursday morning.

At the time of writing, the lithium miner's shares are up 1.5% to $2.03.

This follows the release of the company's half year results.

Pilbara Minerals share price higher despite loss

  • Revenue down 44% to $426 million
  • Underlying EBITDA down 83% to $74 million
  • Underlying loss after tax of $7 million
  • Statutory loss after tax of $69 million
  • No interim dividend

What happened during the half?

For the six months ended 31 December, Pilbara Minerals' revenue fell 44% to $426 million. This was driven by a 58% decrease in the average realised price, partly offset by a 37% increase in sales volume to 418.6kt.

Underlying EBITDA for the Pilgangoora operation declined 83% to $74 million for the half, reflecting the effects of lower pricing.

On the bottom line, the company recorded an underlying loss after tax of $7 million, down from a profit of $286 million in the prior corresponding period. Whereas on a statutory basis, its loss came in at $69 million. This reflects the performance of the underlying Pilgangoora Operation and the impacts of expenses and losses from investments in its new growth platforms.

As you might expect given the state of its financial performance, there will be no interim dividend for shareholders on this occasion.

Management commentary

Pilbara Minerals' CEO, Dale Henderson, was pleased with the company's operational performance during the half. He said:

PLS delivered a strong half year, achieving new production and sales records at our Pilgangoora Operation. These achievements were underpinned by well executed project delivery, with the P680 expansion being completed on time and on budget. In parallel, the P1000 expansion project advanced and achieved first ore on 31 January 2025. This project is now moving through its ramp‐up phase.

Henderson also spoke about how the company is responding to weak lithium prices and what it can do when there are improvements. He adds:

In line with our track record of prudent balance sheet management we implemented the P850 operating model in H1 FY25 which involved optimising our Pilgangoora Operation to the Pilgan plant together with reduced capital expenditure. A key outcome of this optimisation was placing the higher‐cost, lower‐ capacity Ngungaju plant into temporary care and maintenance in December 2024. Ngungaju can be restarted within approximately four months, reinforcing the Group's resilience and ability to adapt to market cycles

Outlook

Henderson doesn't believe the doom and gloom in the lithium industry will be around for long. He spoke very positively about the outlook for the battery making ingredient and the company. The CEO said:

Following a year of robust demand growth in 2024 with global investment in low-carbon energy transition worldwide exceeding US$2T, we remain highly optimistic about the long‐term outlook for the lithium market.

With a robust balance sheet supported by $1.2 billion in cash as at December 2024 and enhanced funding flexibility via our new revolving credit facility, PLS is well positioned for the future. Our strategy of measured, market‐aligned investment – underpinned by our strong Pilgangoora operations and solid balance sheet – positions us to continue driving sustainable growth and deliver long‐term shareholder value.

The Pilbara Minerals share price is down 40% over the past 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Earnings Results

Web Travel share price rockets 13% on market leading full-year growth

Investors are sending Web Travel shares soaring today. Here’s why.

Read more »

Happy shopper at a clothes shop.
Earnings Results

Why did Myer shares just rocket 9%?

Investors are piling into Myer shares on Friday. But why?

Read more »

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Earnings Results

Up 78% since April, why is the Webjet share price taking off again today?

Webjet shares have soared 78% since 4 April and are lifting off again today. But why?

Read more »

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.
Industrials Shares

Guess which ASX 200 stock is crashing 24% on results day

Investors were not impressed with this result. But why?

Read more »

A man in full American NFL playing kit crouches over with his arms across his chest in a defensive stance against a dark background.
Technology Shares

ASX 300 tech stock charges 7% higher to record high on stellar results

This tech stock delivered another impressive result this morning.

Read more »

a group of people sit around a computer in an office environment.
Earnings Results

Guess which ASX 200 tech stock is rocketing 12% on record results

Another half, another record result from this high-quality company.

Read more »

A young man sitting at an outside table uses a card to pay for his online shopping.
Consumer Staples & Discretionary Shares

Why is the Kogan share price crashing 12%?

Profits are down at this ecommerce company during the second half.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Resources Shares

Guess which ASX 200 mining stock is sinking 7% following its quarterly update

Let's see how this miner performed during the third quarter.

Read more »