Pilbara plays defence
Pilbara Minerals claims its “moderated production strategy” is working with the company delivering improved recoveries, reduced costs, steady sales and a small increase in cash at bank for the March quarter...
3rd April 2020
Resources Rising Stars
Pilbara Minerals claims its “moderated production strategy” is working with the company delivering improved recoveries, reduced costs, steady sales and a small increase in cash at bank for the March quarter, although production was a smidge below guidance of 35,000-50,000 tonnes (reports MiningNews).
An estimated 33,893t of spodumene concentrate and 33,998 pounds of tantalite concentrate were shipped during the quarter with the company matching mine production and available stocks to customer.
Sales in the December quarter were 33,178t.
Managing director Ken Brinsden said the company's goal of "defending the business" during a period of weak demand, both before and after the COVID-19, had maintained the value of its Pilgangoora asset in Western Australia, and had delivered a solid operational and financial performance, with shipments "consistent" with guidance.
There is 10,150t of spodumene concentrate stockpiled across the mine and port.
Recoveries were now in line with expectations at between 72-78%, depending on the source of the ore and blending of mill feed.
Pilbara has been fine-tuning the plant for the past six months, and having achieved its targeted recoveries expects it can further reduce operating costs to US$320-250/t once the plant is running on a continuous basis.
The balance sheet was increased A$2.7 million to $108.2 million in cash and irrevocable bank letters of credit for shipments completed during the quarter.
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