The Pilbara Minerals Ltd (ASX: PLS) share price is on watch this morning.
Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed up 5.1% yesterday trading for $4.48 apiece.
The price action will be one to keep an eye on this morning, after the company reported its half-year results for the six months ending 31 December (1H FY23).
Pilbara Minerals share price on watch following inaugural dividend
- Sales revenue of $2.18 billion, up 305% from the $292 million reported in 1H FY22
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $1.81 billion, up 1,091% year on year
- Statutory net profit after tax (NPAT) of $1.24 billion, up 989%
- Inaugural fully franked dividend of 11 cents per share
What else happened during the half year?
The Pilbara Minerals share price could also see some sizeable moves today on some other strong metrics.
That included an 83% year on year increase in production, with the ASX 200 lithium miner producing 309,255 dry metric tonnes (dmt) of spodumene concentrate over the six months. 286,876 dmt were shipped during the period, an increase of 68%.
The miner said it enhanced its output after adopting a production and marketing strategy focused on maximising sales volumes by âdeliberately targeting a lower product grade to optimise product yield and maximise concentrate productionâ.
This all came on the back of a 305% lift in the average realised sales price Pilbara Minerals received, which came in at US$4,993/dmt ~ SC5.4 basis (CIF China).
As youâd expect, the surge in revenue saw a huge improvement in the companyâs cash balance, which increased by $1.63 billion between 30 June and 31 December. At 31 December, the company had a net cash position of $2.08 billion.
What did management say?
Commenting on the results that have put the Pilbara Minerals share price on watch this morning, CEO Dale Henderson said:
This is an exceptional financial result… The strong cash generation from the Pilgangoora Project has further strengthened the companyâs balance sheet, putting us in an enviable position with $2.23 billion in the bank as at 31 December 2022 â a $1.63 billion increase on the prior corresponding period…
This strong financial performance provides the Company a great platform, supporting our growth and diversification strategy to become a leading, sustainable battery materials supplier.
Whatâs next?
Looking at what might impact the Pilbara Minerals share price in the months ahead, Henderson said, âThe company and its stakeholders are poised to continue to thrive. The combination of a world-class asset, operating expertise and team spirit is coming together and delivering into a growing market.â
Henderson ended on this optimistic note, âThe stage is set for Pilbara Minerals to take massive growth steps in the months and years ahead. This is just the beginning.â
Pilbara Minerals share price snapshot
As you can see on the chart below, the Pilbara Minerals share price has been a strong performer, up 71% over the past 12 months.
Weâll wait and see how the market reacts to todayâs results.
The post Pilbara Minerals share price on watch amid 989% profit surge appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Friday
- Here are the top 10 ASX 200 shares today
- Broker says Pilbara Minerals share price is heading even higher
- Here are the 3 most heavily traded ASX 200 shares on Thursday
- Here are the 3 most heavily traded ASX 200 shares on Wednesday
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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