The company’s Pilgangoora operation produced 81,431 dry metric tonnes of spodumene concentrate, within guidance of 75,000-90,000t.
It was the lowest production of the 2022 financial year so far as the company fights the impacts of rising COVID-19 cases and reduced availability of staff and contractors.
However, the figure beat Canaccord Genuity’s forecast of 79,000t.
Pilbara maintained full-year guidance of 340,000-380,000t, but warned that further COVID-19 impacts could see that figure being at the lower end of the range.
Commissioning of the Ngungaju plant fines flotation circuit load began on Saturday and capacity of the Pilgan plant has been increased from 330,000t per annum to 360,000-380,000tpa following improvements.
The operation of the two plants should see Pilbara’s annual production rise to 560,000-580,000t.
March quarter shipments of 58,383t were impacted by a port delay, which saw a 20,000t cargo scheduled for late March not set sail until April 7.
Pilbara confirmed an average March quarter realised sales price of US$2650 per dry metric tonne CIF China, within guidance of $2600-3000/t, which included a 16,000t shipment priced in the December quarter.
It’s more than double the average price of $1250/t received in the December 2021 half.
“Battery grade chemical pricing continued to strengthen during the March quarter, with current pricing dynamics suggesting a material step-up in spodumene concentrate pricing for offtake contract sales during the June quarter,” Pilbara said.
While Pilbara said it wouldn’t provide further pricing guidance until its full quarterly report on April 28, managing director Ken Brinsden gave some idea of the sorts of prices the company could be receiving in a presentation on March 31.
“Today’s actual price is $4500-5000/t, indicating the trend in spodumene prices,” he said.
The company is targeting the next auction of 5000t of spodumene via its BMX platform in the last week of April.
Previous auctions have attracted prices well above spot levels due to high demand for lithium.
Auctions will increase as the Ngungaju plant ramps up.
Canaccord maintained a buy rating and lowered its price target by A10c to $3.60, based on a long-term spodumene price of US$1000/t.
“As a scenario, if we halve spot pricing for SC6 $5000/t and LIOH $70,000/t (i.e., $2500/t SC6 and $35,000/t LiOH) and run it flat through our model, it would result in our price target lifting to A$8.70/sh,” analyst Timothy Hoff said.
