Australian lithium miner Pilbara Minerals posted on Friday a 326% surge in its net profit during the 12-month period ended on 30 June, driven by record production and sales, Kallanish reports.

The owner of the Pilgangoora operation in Pilbara, Western Australia, achieved a net profit of AUD 2.4 billion in FY23. Revenues jumped 242% in the period to AUD 4.1 billion, as production increased 64% on-year to 620,100 tonnes of spodumene concentrate and sales rose 68% to 607,500 t.

The boost was further supported by an 87% rise in its average realised prices to $4,447/t cif China (SC 5.3%), compared to $2,382/t a year earlier.

Chief executive Dale Henderson described the FY23 period as “an exceptional year” for the company on all fronts. “Strong operational performance within a healthy pricing environment for lithium products has translated to an impressive set of financial outcomes for the business and our shareholders,” he said in a presentation.

With its Pilgangoora Operation, in Pilbara, Western Australia, the company is one of the few major hard-rock lithium producers globally. It’s currently increasing production capacity by 70% reserves and has just announced a 35% lift to ore reserves now at 214 million tonnes (at 1.2% lithium oxide). In addition, the miner is also progressing a downstream chemical strategy with Posco and a midstream demonstration with Calix.

“Pilbara Minerals has entered the new financial year with continued momentum in pursuit of our ambition to be a leader in the provision of sustainable battery materials products,” adds Henderson.

The miner noted that despite the pullback in pricing during the last quarter, it continued to realise strong margins. It expects demand growth for its product “with some ongoing pricing volatility in the shorter term as the supply chain continues to tightly manage inventories and responds to macro-economic conditions.”

In the long term, Pilbara says the outlook is “very positive” for battery-grade lithium raw materials based on anticipated market undersupply.