Lithium miner Pilbara Minerals Ltd [ASX:PLS] is on the up today.
The $8.5 billion company has pleased the market with some favourable results. Lifting the PLS share price by 1.97% at time of writing.
A brief reprieve from the stocks downward momentum after peaking in late January. Perhaps signalling that it may be on course for a rebound.
Let’s take a look at the numbers and see what there is to gleam…
A profitable turnaround
What a difference one year can make.
That is how you can best describe PLS’s stark turnaround.
Because compared to this time last year, the company has seen a 393.6% increase in total sales. Pulling in more than $291.7 million in revenues for the first half of FY22. A massive improvement on the $59 million reported in the first half of FY21.
A large reason for this is due to a 49% increase in total product sold for PLS. The company has shipped a huge 170,228 tonnes of spodumene concentrate in the past six months. Making the most of the hot demand for lithium at the moment.
And with prices for this mineral soaring, PLS has reaped a whole lot of reward for its effort.
As a result, both earnings and net profit saw a dramatic shift. Delivering a $151.1 million EBITDA result that has culminated in a $114 million net profit.
Compared to last year’s interim results — a $3.2 million earning loss and a $21.2 million net profit loss — investors clearly have reason to be happy. PLS is finally delivering on its potential and has rewarded shareholders with an incredible run-up over the past 12 months.
However, given these figures, some traders may have expected a stronger response today.
But with Managing Director and CEO Ken Brinsden announcing his plans to step down at the end of this year, that may have dimmed the outlook a little because it’s now up to the board to find an adequate replacement.
As Chairman Tony Kiernan comments:
‘Ken has been a wonderful, dedicated and inspirational leader who has worked tirelessly to help build the Company into what it is today — a leading ASX-100 battery raw materials company with a truly exciting future.
‘More recently, he has led the Company through both a challenging period and overseeing a number of strategic initiatives that have set us up for long-term growth.
‘Given the scale and prominence of the Pilgangoora Project and the exciting growth pathway ahead of the Company, this is a wonderful platform for Ken’s successor to lead the Company through to the next strategic horizon and beyond.’
What’s next for PLS?
With lithium prices showing no signs of slowing down, PLS clearly won’t be looking to slow things down. They are in a great position to capitalise upon the huge demand that exists right now.
Again, though, with Brinsden exiting in the coming months, finding the right successor will be key. They need someone who can lead them through this boom and beyond.
After all, as long-term lithium investors will know, markets can change swiftly in sentiment.
In order to ensure you know how to navigate this turbulent sector, we suggest reading our complete guide. A comprehensive report that will tell you all you need to know about the Aussie lithium sector. Including some of the best ways to invest and potentially profit from it.
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For Money Morning