Pilbara Minerals Limited (ASX: PLS) (Pilbara Minerals or the Company) provides the following update on March Quarter production, sales and pricing, as well as current production activities at its 100%-owned Pilgangoora Project in Western Australia.
The Pilgangoora operation achieved March Quarter production of 81,431dmt of spodumene concentrate, consistent with prior guidance. Production has, in part, been impacted by the rising instance of community transmission of COVID in Western Australia during the Quarter, which has reduced the availability of staff and contractors. With COVID-19 expected to continue to partly impact the Company's operations through the June Quarter, there remains some uncertainty regarding production forecasts through to 30 June 2022.
COVID has (and may continue in the near term) to cause operational delays, including staffing shortages for both shut-down and operating staff (mining and processing). Despite these impacts, FY22 annualised production guidance has been maintained in the range of 340-380,000dmt, albeit noting that any continuing COVID-19 impacts may result in production being in the lower half of the guidance range. March Quarter shipments of 58,383dmt were achieved (compared with 78,679dmt in the December Quarter), with an average price consistent with prior March Quarter price guidance (CIF China, SC6 basis). Total tonnes shipped was impacted by a cargo-ready 20,000 dmt shipment being delayed as a result of berth access constraints at the end of the Quarter.
This vessel subsequently sailed on the 7th of April 2022 with final pricing consistent with March Quarter price guidance (CIF China, SC6 basis). Pricing for the March Quarter included approximately 16kt of product priced for shipment in December, which was actually shipped during the March Quarter. 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. The Company will provide further pricing guidance as part of the upcoming March Quarterly Report.
Production from the Ngungaju plant's coarse concentrate circuit went largely to plan during the March Quarter. Construction work for the restart of the flotation circuit is now complete, with the load (ore) commissioning process now underway. Following the successful commissioning of the Pilgan plant improvements project, production capacity is now re-rated from 330ktpa to 360-380ktpa of spodumene concentrate. Pilbara Minerals is targeting its next BMX auction for the last week of April 2022, with 5,000dmt planned for delivery during June 2022.
Further auctions are anticipated in the near term as the ramp-up at the Company's Pilgangoora operations to 560 - 580,000dmt per annum of spodumene concentrate continues, resulting in more uncontracted tonnes becoming available for spot BMX sales.
Contact:
David Hann
Tel: +61 (0)8 6266 6266
IMPORTANT INFORMATION
The production and sales guidance in this announcement is indicative only, based on the Company's revised budgetary forecasts and other estimates. It is developed in the context of an uncertain operating environment including in respect of COVID-19 related risks (community distribution and supply chain disruption) and the commissioning and ramp of both the Pilgan Plant Improvement Projects and the re-start and commissioning of the Ngungaju Plant which may impact production and have a flow on effect on sales volumes. Actual results may therefore vary significantly depending on these risks and the timing required to address certain short term operational challenges previously advised to the market which include reduced concentrate production, lower lithia recoveries, mining constraints affecting optimal ore feed blend and industry wide labour shortages for mining, maintenance and processing personnel. The information is therefore provided as an indicative guide to assist sophisticated investors with modelling of the Company. It should not be relied upon as a predictor of future performance. This announcement may contain some references to forecasts, estimates, assumptions and other forward-looking statements. Although the Company believes that its expectations, estimates and forecast outcomes are based on reasonable assumptions, it can give no assurance that they will be achieved. They may be affected by a variety of variables and changes in underlying assumptions that are subject to risk factors associated with the nature of the business, which could cause actual results to differ materially from those expressed herein.
ABOUT PILBARA MINERALS
Pilbara Minerals is the leading ASX-listed pure-play lithium company, owning 100% of the world's largest, independent hard-rock lithium operation. Located in Western Australia's resource-rich Pilbara region, the Pilgangoora Operation produces a spodumene and tantalite concentrate. The significant scale and quality of the operation has attracted a consortium of high quality, global partners including Ganfeng Lithium, General Lithium, Great Wall Motor Company, POSCO, CATL and Yibin Tianyi. While it continues to deliver a low-cost, quality spodumene to market, Pilbara Minerals is pursuing a growth and diversification strategy to become a sustainable, low-cost lithium producer and fully integrated lithium raw materials and chemicals supplier in the years to come.
PILBARA MINERALS LIMITED 
