AT A GLANCE: Pilbara Minerals sales rise 2% amid ‘moderate production target’

In brief

• The Australia-based company said it pursued a moderated production strategy and cost reduction initiatives to maintain a positive cashflow and capitalize on the market turnaround in the medium-to-long term.
• The company’s spodumene concentrate sales rose by 2%, drawing down on available stocks while delaying mining activity to the end of March.
• Pilbara Minerals diversified its customer base following the signing of a five-year offtake agreement to supply spodumene concentrate from its Pilgangoora lithium-tantalum project in Western Australia to Chinese lithium manufacturer Yibin Tianyi.
• The company reported lower revenues due to softer sale prices for spodumene concentrate.
• The company has not experienced any material operational impact at its Pilgangoora Lithium-Tantalum project as a result of the Covid-19 pandemic despite disruptions reported within China’s supply chain, where the largest share of Pilbara Minerals’ customer base is located.
• Sales guidance for the third quarter of 2020 is expected to be affected by pre-existing weakness in the lithium industry and additional headwinds triggered by the coronavirus pandemic and its economic fallout.
• The impact of Covid-19 is expected to reflect in its third-quarter results.

Key figures for the first quarter
(quarter on quarter percentage change)

Production
20,251 tonnes, up 38%

Sales
33,729 tonnes, up 2%

Cashflow balance
$108.2 million, up 3%

Q3 sales guidance
25,000-35,000 tonnes