Pilbara Minerals delivered record production of 85,759 dry metric tonnes (dmt) of spodumene concentrate for the September quarter, up 11 per cent from 77,162dmt the three months prior.
According to the Perth-based company, 91,549dmt of spodumene concentrate set sail during the quarter, which exceeded the company’s shipment guidance of between 77,000 and 90,000dmt.
Record production and shipments coincided with impressive results from Pilbara Minerals’ first three digital auctions of spodumene concentrate on the Battery Materials Exchange (BMX).
Pilbara Minerals attracted a highest bid of $US2350 ($3112)/dmt at its third auction this week, up from $US2240 ($2966)/dmt at its second auction held in September.
Pilbara Minerals chief executive officer Ken Brinsden told Australian Resources & Investment he is already seeing the wider benefits of the BMX, a platform showcasing spodumene’s value and boosting interest in its offtake stream as a result.
“One dynamic that’s been very helpful is it’s (the BMX) been able to break open the market, demonstrate the value in the spodumene and in particular, demonstrate the disconnect between the spot market versus the offtake pricing,” he said.
“That’s allowed us to reopen negotiations with our offtake partners about the real value in the spodumene, so it’s been very complimentary.”
Pilbara Minerals commenced commissioning of its Pilgan processing plant improvement projects in the September quarter, with first concentrate production achieved through its new filter press occurring in October.
Other developments saw Pilbara Minerals commence commissioning of the coarse production circuit, with first spodumene concentrate produced from the Ngungaju processing plant in October.
Pilbara Minerals also entered into a power purchase agreement with Contract Power, paving the way for the development of a six-megawatt solar farm for the Pilgangoora project. Necessary earthworks have been progressing at the project.
There have been no material changes to Pilbara Minerals’ production and shipment guidance for the 2022 financial year (FY22).
Production is forecast to be between 460,000-510,000dmt with shipments expected to be between 440,000-490,000dmt for FY22.