Highlights

  • Pilbara Minerals shares drop to AUD 1.13, down nearly 80% from 2023 highs.
  • CFO Luke Bortoli to leave after helping secure AUD1 billion credit facility.
  • Quarterly lithium production and sales decline by over 30% compared to prior quarter.

Pilbara Minerals Ltd (ASX: PLS) continued to face pressure in its share price on Tuesday, trading around AUD 1.13 as the company announced the departure of Chief Financial Officer Luke Bortoli. Bortoli, who joined Pilbara Minerals in early 2023 after serving as CFO at Afterpay, will remain during a transition period to ensure an orderly handover before pursuing other opportunities.

During his tenure, Bortoli contributed to securing an AUD 1 billion Revolving Credit Facility and supported the acquisition of Latin Resources, among other strategic initiatives. The company has commenced a formal search for a new CFO.

The share price decline reflects ongoing challenges in the lithium market, with Pilbara Minerals shares down almost 80% from their 2023 peak of approximately AUD5.37. The drop is largely attributed to falling lithium prices amid a global oversupply, with spodumene prices hitting four-year lows.

Pilbara Minerals reported a 34% quarter-over-quarter decrease in lithium production to 125,000 tonnes (kt) of spodumene and a 39% drop in lithium sales to 125.5 kt in its most recent quarterly update. Despite these declines, the company maintains liquidity of about AUD1.7 billion, combining AUD1.1 billion in cash with an undrawn credit facility of AUD625 million.

Analyst opinions remain mixed. Bell Potter forecasts a AUD68 million loss for the current year but anticipates a return to profitability in subsequent years. Macquarie sees upside potential with a price target of AUD2.40 per share. Conversely, UBS downgraded Pilbara Minerals to a sell rating, along with other lithium producers IGO Ltd (ASX: IGO) and Liontown Resources Ltd (ASX: LTR).

The lithium sector continues to experience volatility, with the future trajectory of prices and company performance remaining uncertain.