Reporting Season

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

Tue 23 Aug 22, 10:10am (AEDT)
Iron Ore 2 Mining Port
Source: iStock

Key Points

  • Pilbara Minerals profits jump almost 1,000% to $561.8m
  • Top and bottom line figures missed Bloomberg estimates
  • FY23 production expected to be 42% to 53% higher than FY22

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:

Full year

2022

2021

% change

Revenue ($m)

1,189.6

175.8

577

EBITDA ($m)

814.5

21.4

3,703

Statutory profit ($m)

561.8

51.4

993

Cash inflow ($m)

647.6

18.8

3,345

Cash balance ($m)

591.7

99.7

493.5

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:

Full year

2022

2021

% change

Production (dmt)

377,902

281,100

34.4

Shipped (dmt)

361,035

281,400

28.3

Realised selling price (A$/dmt)

2,382

n/a

n/a

Unit operating cost (A$/dmt)

844

519

62.6

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)

 

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Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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