Pilbara Minerals share price falls on 30% quarterly revenue slump

ASX investors are bidding down Pilbara Minerals shares on Thursday. Here's why.

| More on:
a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.

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 sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed yesterday trading for $1.37. In morning trade on Thursday, shares are changing hands for $1.35 apiece, down 1.5%.

For some context, the ASX 200 is up 0.2% at this same time.

This underperformance follows the release of Pilbara Minerals' March quarterly results.

Here are the highlights.

Pilbara Minerals share price slips on revenue drop

The Pilbara Minerals share price is slipping after the miner reported spodumene concentrate (lithium) production volume of 125,000 tonnes for the three-month period to 31 March, down 34% from the December quarter.

Management said the slump in lithium production reflected the full quarter impact of the miner's Ngungaju plant being in care and maintenance, tie ins and ramp up of the P1000 Project, and Tropical Cyclone Zelia's impact.

On a brighter note, spodumene prices were up 7% from the December quarter. The ASX 200 lithium stock said its received an average estimated realised price of US$747 per tonne (CIF China) on a ~SC5.3 basis. Sales for the three months came in at 125,500 tonnes.

However, with lower sales volume, the lift in realised prices wasn't enough to boost revenue, which slumped 30% quarter on quarter to $150 million.

Also potentially pressuring the Pilbara Minerals share price today, the miner's unit operating cost (FOB) increased by 10% from the December quarter to $685 per tonne.

Management noted that the cash margin from operations of $39 million reflected the miner's "resilient cash generation from the core business in the current lithium market".

As at 31 March, Pilbara Minerals had a cash balance of $1.1 billion. That was down $109 million from 31 December amid ongoing capital expenditure. But Pilbara Minerals noted it has largely finalised its investment phase and is now focused on optimisation.

The March quarter saw the ASX lithium miner complete its P1000 Project tie ins and ramp up according to plan. First ore was achieved on 31 January, and all performance test criteria were achieved in February.

Management said the Pilgan plant optimisation is targeted for completion in the June quarter. They said, "Pilgan will support higher production volume and lower unit costs through the quarter and throughout FY 2026".

The March quarter also saw Pilbara Minerals complete its acquisition of lithium miner Latin Resources. Pilbara said it has kicked off an exploration program to infill and expand the existing mineral resource. It expects an outcome of ongoing studies next year, in the June quarter of 2026.

Looking ahead, the ASX 200 lithium stock reaffirmed its FY 2025 guidance across all metrics.

With today's intraday dip factored in, the Pilbara Minerals share price is down 39% in 2025.

Motley Fool contributor Bernd Struben 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 Materials Shares

Three miners stand together at a mine site studying documents with equipment in the background
Materials Shares

$10,000 invested in BHP shares in FY25 is now worth

Did the Big Australian outperform or underperform during the last financial year?

Read more »

A male investor sits at his desk pondering at his laptop screen with a piece of paper in his hand.
Share Market News

Why did Macquarie just downgrade Liontown resources shares?

Here’s what the broker had to say about this materials company. 

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Why did Macquarie downgrade Mineral Resources shares?

The broker is no longer bullish on this mining and mining services company.

Read more »

A bricklayer peers over the top of a brick wall he is laying with a level measuring tool on top and looks critically at the work he is carrying out.
Materials Shares

Brickworks shares rise 1% on trading update

Investors seem delighted by a new update from Brickworks.

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Materials Shares

Does Macquarie prefer Rio or BHP shares today?

Let's find out which mining giant is the better pick right now according to the broker.

Read more »

Miner and company person analysing results of a mining company.
Materials Shares

Bell Potter says this ASX 300 mining stock could rise 125%

Let's see what the broker is saying about this stock.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Materials Shares

Guess which ASX mining stock is up 8% today and could rocket a further 200%

Bell Potter has good things to say about this mining stock which released an announcement today.

Read more »

Broker working with share prices on computers.
Materials Shares

Timing the dip: How far can these ASX materials shares fall?

When could be the right time to buy low on this battered sector?

Read more »