The Pilbara Minerals Ltd (ASX: PLS) share price is on watch today after reporting its June 2026 update.
Pilbara Minerals is one of the largest lithium miners in Australia and one of the largest in the world.
Rewarding June 2026 quarter
The business said that in the three months to June 2026, production of 214.3kt was a decline of 8% compared to the March 2026 quarter.
But, the amount of volume sold for the quarter was 249.9kt, 28% more than the March 2026 quarter.
Pleasingly, the lithium price continues to rise. Pilbara Minerals reported that the realised sold price for its lithium was US$2,107 per tonne, up 13% from the March quarter.
The above led to revenue rising by 31% quarter on quarter to A$743 million.
However, production costs per tonne also significantly increased because of higher diesel prices and Ngungaju plant restart costs.
The free on board (FOB) production costs -which exclude freight costs and royalties – saw a rise of 18% to A$616 per tonne. The CIF China production costs (which includes freight and royalties) saw an increase of 15% to A$845 per tonne.
Revenue did grow faster than expenses, allowing its cash margin from operations, a measure of operating profit, to grow by 26% quarter on quarter to A$579 million.
Pilbara Minerals also saw its cash balance soar 57% to A$2.3 billion over the quarter.
The company also noted that the P2000 and Colina project feasibility studies continue to progress, consistent with updated study timelines, with around $175 million of pre-final investment decision (FID) approved capital expenditure for the P2000 project in June.
FY26 performance
June 2026 was the last quarter of FY26, so the business was also able to tell investors about its performance for the 12 months to June 2026.
Production and sales volume increased by 17% to 879.5kt and 891.6kt respectively, while the realised sold price jumped 121%. This led to revenue rising 152% to A$1.9 billion, the cash margin from operations grew 607% to A$1.36 billon and the cash balance increased 135% to A$2.3 billion.
FY27 guidance
Pilbara Minerals is guiding that its production will rise again in FY27 to between 1,030kt to 1,100kt. That suggests a possible rise of at least 17% in FY27.
Unit operating costs (FOB) are projected to come between A$575 to A$625 per tonne. The mid-point of that guidance suggests a possible decline of 2.5% of costs, despite inflation.
Final thoughts on the Pilbara Minerals share price
The business is clearly capitalising on the higher lithium price and it’s boosting the profitability.
I’m not sure if this is the right time to invest because the lithium price and Pilbara Minerals share price has risen so much in the past year – the market can already see the elevated profit generation.
I think there are other ASX growth shares that are better value that don’t have as much success priced in.
