A summary of Australian lithium spodumene concentrate producer Pilbara Minerals operational results for the first quarter of 2020, as stated in its operational report on Tuesday April 28.
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