Pilbara Minerals Reduces Production Forecast for Fiscal Year 2025

Forex - Australian Pilbara Minerals has lowered its fiscal production forecasts for 2025 and announced a cash flow improvement of AUD 200 million (USD 131.2 million) by optimizing its Pilgangoora operations in Western Australia.

Pilbara will now solely operate the Pilgan facility at Pilgangoora, which is expected to produce approximately 850,000 tons per year once it reaches full capacity. The lower-capacity and higher-cost Ngungaju facility will undergo maintenance and repairs in early December.

Analysts noted that the maintenance of the Ngungaju facility is a logical and necessary response to current lithium pricing dynamics, allowing production to focus on the more efficient Pilgan facility.

The optimization plan will reduce costs and capital expenditures for the company but will impact fiscal year 2025 production by 100,000 tons. The company now expects production for fiscal year 2025 to be between 700,000 tons and 740,000 tons, which is lower than the previous forecast of 800,000 to 840,000 tons.