Ann: FY22 Annual Financial Results Announcement, page-98

• Pilbara Minerals announces a $561.8m full year net profit after tax
• Lithium deficit by 2040 equivalent to 18 Pilgangooras, PLS says
• Alumina posting a 128% net profit increase to $168m for the half year, announces 4.2c per share dividend

The important large cap ASX mining news for Tuesday, August 23.

The poster child for lithium super profits,Pilbara Minerals (ASXLS),has today announced a $561.8m full year NPAT.

Manic demand for Aussie spodumene saw selling prices increase to an average of $US2,382/t in FY22, PLS says.

(Spot prices are even higher, with the company’s latest Battery Materials Exchange auction pulling US$6,350/t for a 5.5% Li2O spodumene concentrate.)

That’s a gross margin of $853.5m from the sale of 361,035t, up from just $46.2m in FY21 (281,440t) and $11.9m (116,256t) in FY20.

It finished the year with a net cash position of $714.3m.

Insane. How quickly things change in lithium land.

The former Altura operation, now called Ngungaju, is on-track to achieve nameplate production capacity of ~180,000-200,000tpa during the September Quarter.

This will boost combined annual production capacity across the Pilgangoora operation from both plants to ~540,000-580,000tpa of spodumene concentrate, the company says.

PLS recent approved an expansion to 640,000t-680,000t, ahead of a potential move to 1 million tonnes per annum.

“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,” MD Dale Henderson says.

“Further, chemicals participation with our downstream JV 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.”

Exciting indeed.

The $9.75 billion stock was up ~3.5% in early trade.

READ:Demand destruction for lithium? Not until people stop buying EVs, Pilbara Minerals sayshttps://unauthorised investment advice/resources/ground-breakers-pilbara-minerals-lifted-its-gross-margin-by-more-than-1800-last-year/