Pilbara Minerals posts thirty fold jump in earnings but missed analyst expectations

Pilbara Minerals (ASX: PLS) is turning into a cash printer, posting an inaugural full year profit of $561.8m thanks to surging lithium spodumene prices.

Results at a glance:

Source: Pilbara Minerals | Table: Market Index

Bullish numbers but below expectations

There's no denying that a thirty-fold jump in earnings sounds incredibly bullish at face value.

Still, it seems like analysts were expecting a whole lot more. Both top and bottom line figures missed Bloomberg estimates, including:

• Revenue: $1.27bn ($82m miss)

• EBITDA: $910.1m ($95.6m miss)

• Profit: $829.9m ($268m miss)

• Free cash flow: $579.5m ($12.2m beat)

So what'll hold more weight? A bullish headline of a thirty-fold jump in earnings or missing analyst expectations?

Pilbara Minerals shares were down around -0.95% as the market opened.

Production and sales overview

Operating metrics at a glance:

Source: Pilbara Minerals | Table: Market Index

FY23 guidance

“The restart of the Ngungaju Plant during the year, together with capacity improvements at the Pilgan Plant enabled increased production volumes to sell into this strong pricing environment," said CEO Dale Henderson.

Pilbara Minerals expects the Pilgangoora Operation to achieve a nameplate production capacity between 540,000 to 580,000 tonnes per annum of spodumene concentrate.

“Having recently approved the expansion to grow production by a further 100,000tpa to a combined ~640,000-680,000tpa, and with the Company now progressing towards a FID to expand production to 1Mtpa, Pilbara Minerals commences FY2023 in an exceptionally strong position," notes Henderson.

In FY23, Pilbara Minerals forecasts:

• 540,000 to 580,000 dry metric tonnes of spodumene

• Unit operating costs between $635 to $700/dmt (excl freight, shipping and royalties)