February 19 (Reuters) – Pilbara Minerals Ltd Australia on Friday reported a half-year revenue spike of more than 56% and showed bullish market conditions for lithium as its losses narrowed from the previous year.
The lithium market looks set to come out of a three-year slump, driven by rising demand for electric vehicles (EVs) from China that has helped support the price of the minerals used to make EV batteries.
Australian lithium miners, who together account for about half of the world’s supply, have started showing signs of improvement with record spodumene shipments in the December quarter and project acceleration.
“The lithium feedstock market is now clearly on an upward trend as it relates to demand and prices, which now translate into better spodumene prices,” said Pilbara Managing Director Ken Brinsden.
The company said shipments of spodumene concentrate for the six months to December 31 more than doubled to 114,239 dry metric tons.
That helped revenue jump 56.5% to A $ 59.1 million ($ 45.9 million), while after-tax losses narrowed to A $ 21.2 million from A $ 63.4 million a year earlier.
Banking on a rebound in lithium prices, Wesfarmers and Chilean miner SQM earlier this week approved a final investment decision for their Mt Holland lithium project in Western Australia. ($ 1 = Australian dollars 1.2882) (Reported by Shashwat Awasthi in Bengaluru; Editing by Vinay Dwivedi)