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Lithium demand ‘is absolutely there’: Henderson

Tom Parker46 mins ago

Pilbara Minerals has posted another strong operational quarter, with lower revenues influenced by softer lithium pricing.

The company said its September quarter spodumene concentrate production of 144,200 tonnes – a 11 per cent decrease from the June quarter – was to plan, with output affected by critical maintenance shutdowns for the P680 project, which looks to boost the company’s overall production to 680,000 tonnes per annum.
Revenue dropped 42 per cent quarter-on-quarter (from $844 million to $493 million), which came as spodumene concentrate (5.3 per cent grade) was shifted at an average of $US2240 ($3524) per tonne – a 31 per cent quarter-on-quarter drop.
When asked in an investor call whether the company had faced greater difficulty selling spodumene on a spot market in the September quarter, Pilbara Minerals chief executive officer Dale Henderson said he had no concerns with current lithium demand.
“The demand is absolutely there for product,” he said. “It hasn’t been a case of, ‘We can’t move product’, and certainly none of our customers are not wanting product.
“It’s just been more a case of moderating pricing and contending with the question of, ‘What is the right price for the market?’. That’s where the shift has been.”
Pilbara Minerals sells spodumene on a spot market to accompany its offtake agreements, something which has delivered the company plenty of success in the past.
While Henderson said he wasn’t concerned about where the lithium market is at, he admitted there has been a change in buying behaviours.
“Is it (the lithium market) different from where it was?” he said. “Absolutely it’s different from the December quarter when we had the fever of lithium buying – $US80,000 per tonne of chemicals etcetera. We’re not in that environment now, but it’s still a very healthy market.”
Pilbara Minerals remains in a strong cash position, with $3 billion in the bank (9 per cent down from the June quarter). This is $1.6 billion higher than the company’s cash position this time last year.
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