The Pilbara Minerals Ltd (ASX: PLS) share price is up 2% after the ASX lithium share gave its March quarterly update.
Pilbara Minerals is one of the largest lithium miners in Australia with a project called Pilgangoora.
Pilbara Minerals FY25 Q3 update
The lithium miner reported that its quarterly production was 125kt, down 34% from the December 2024 quarter. Its sales declined 39% to 125.5kt.
The reduction reflected the full-quarter impact of the Ngungaju plant being in ‘care and maintenance’ under the P850 operating model, tie-ins and ramp-up of the P1000 project, as well as the impact of Cyclone Zelia.
Pilbara Minerals also announced that its realised (sold) price increased 7% to US$747 per tonne, up from US$700 per tonne in the second quarter.
Overall revenue declined 30% to A$150 million, which reflects the lower sales volume.
The mining business reported that its unit operating costs (free on board (FOB)) increased by 6% to US$406 per tonne. The unit operating costs (CIF China) increased 4% to US$478 per tonne.
Pilbara Minerals’ cash balance decreased by 9% over the quarter to A$1.1 billion. This was mainly due to capital expenditure – this has largely been finalised and it’s now focused on optimisation.
It reported that it generated a cash margin from operations of $39 million, “reflecting the resilient cash generation from the core business in the current lithium market.”
Other highlights
The lithium miner said its P1000 project tie-ins and ramp-up has been completed to plan. The Pilgan plant optimisation is targeted for completion in the June 2025 quarter, which will “support higher production volume and lower unit costs through the quarter and throughout FY26.”
The Latin Resources acquisition was completed, with the exploration program was initiated to infill and expand the existing mineral source and ‘inform study optimisation. The outcomes are expected in the June 2026 quarter.
Pilbara Minerals said it’s continued to focus on cost reduction with a team identifying and implementing cost reduction initiatives across the company.
Final thoughts on the Pilbara Minerals share price
The lithium miner has fallen over 70% since 2023, so it’s much cheaper now. If the lithium price keeps rising then this could be a brave, opportunistic time to invest because a rise in the lithium price could significantly help profitability.
There are other ASX shares that may be safer picks, but if the lithium price rises further, this could be a very interesting stock, starting from this low price.
