PERTH (miningweekly.com) – Lithium miner Pilbara Minerals has reported a 577% increase in sales revenue for the 2022 financial year, as spodumene concentrate shipments increased by 28%.

The ASX-listed company on Tuesday announced that 361 035 t of spodumene concentrate was shipped during the full year ended June, up from the 281 440 t shipped in the 2021 financial year, resulting in sales revenue for the period increasing from A$175.1-million to A$1.2-billion.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) was reported at A$814.5-milion, compared with an Ebitda of A$21.4-million for the 2021 financial year, while statutory net profit after tax reached A$561.8-million, compared with a loss of A$51.4-million in the previous comparable period.

The company told shareholders that the profit result was driven by a strong operating performance from the Pilgangoora lithium/tantalum operation in the Pilbara, which delivered a gross margin from operations of A$853.5-million, compared with the A$46.2-million reported last year.

“The 2022 financial year has been an incredible year for Pilbara Minerals, with our Pilgangoora operation capitalising on the surging demand for lithium raw materials that we have experienced over the course of the year,” said MD and CEO Dale Henderson.

“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. The combination of strong operational performance and the significant increase in lithium pricing underpinned a robust inaugural profit result and has transformed the company’s balance sheet from the prior year.

“The Ngungaju plant is on track to achieve its nameplate production capacity of some 180 000 t/y to 200 000 t/y during the September quarter, increasing our combined annual production capacity across the Pilgangoora operation from both plants to some 540 000 t/y to 580 000 t/y of spodumene concentrate.”

Henderson said that the fact Pilbara was able to achieve the strong profit result despite the significant headwinds of Covid-19, the Western Australian mining industry’s labour and supply shortages and rapid cost inflation, was testament to the outstanding efforts of its employees and contracting partners.

“Having recently approved the expansion to grow production by a further 100 000 t/y to a combined 640 000 t/y to 680 000 t/y, and with the company now progressing towards a final investment decision to expand production to one-million tonnes a year, Pilbara Minerals commences 2023 in an exceptionally strong position,” Henderson said.

“The business is in an enviable position, supplying product into a burgeoning growth market with a clear pathway for further production growth off a performing operating base. Further, chemicals participation with our downstream joint venture with POSCO and our midstream project provides another extension of value creation for our shareholders. A very exciting future lies ahead for our business and our shareholders.”