The Pilbara Minerals Ltd (ASX: PLS) share price is up 0.5% after the ASX lithium share reported its FY25 half-year result.
Pilbara Minerals is one of the largest lithium miners in Australia. It has a project called Pilgangoora.
Pilbara Minerals HY25 result
Here are some of the highlights of the six months to 31 December 2024:
- Production rose 28% to 408.3kt
- The realised price sank 58% to US$688 per tonne
- Revenue fell 44% to $426 million
- Underlying EBITDA plunged 83% to $74 million
- Underlying net profit down 102% to a loss of $7 million
- The statutory profit sank 132% to a loss of $69 million
Pilbara Minerals pointed to a strong operational performance with the production significantly higher, but the large decline of the lithium price has heavily harmed its profitability.
Its net loss was caused by the lower operating profit and the expenditure of its new growth initiatives.
The P680 crushing and sorting facility has been completed and, after the reporting period was finished, the P1000 project construction was completed and it’s now in the ramp-up phase. Both of these projects were progressed on schedule and on budget.
To try to mitigate the profitability issues, the Ngungaju plant was placed into care and maintenance to reduce costs.
After the end of HY25, the acquisition of Latin Resources was completed. Pilbara Minerals is working on increasing the underlying value through further exploration and study optimisation activities.
It had a strong balance sheet at December 2024, with cash of $1.2 billion.
Management comments
Pilbara Minerals CEO and Managing Director Dale Henderson 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.
Outlook for the Pilbara Minerals share price
The ASX lithium share has been through a lot of pain. Its large cash balance has helped cushion the blow, but it’s hard to say whether lithium prices can significantly climb from here considering production continues to grow.
If investors think lithium prices can make a recovery, this seems like a good time to invest. It’s not the sort of clouded outlook investment I like to make though, so I’ll wait on the sidelines as an interested watcher.
I think other ASX growth shares could deliver better returns.
