By Rhiannon Hoyle

Australian lithium miner Pilbara Minerals reported a rise in annual production and a fall in operating costs, but said revenue was much weaker because of a slump in prices for the battery metal.

The company said it expects to increase output and reduce costs further in the year ahead.

Perth-based Pilbara Minerals said it produced 754,584 metric tons of lithium-rich spodumene concentrate in the 12 months through June, up 4% on a year earlier.

Its unit operating cost, on a free-on-board basis, totaled 627 Australian dollars ($408) a ton, down 4% year over year.

Pilbara Minerals said production exceeded guidance to investors, while costs were within its forecast band.

The miner's revenue fell by 39%, to A$769 million, as the price it fetched for its spodumene concentrate tumbled by 43% versus the year before.

Lithium prices retreated over the past two years as companies invested heavily in new projects, outstripping demand. Prices have risen again slightly in recent weeks.

The company said fiscal 2026 will be "a pivotal year" and that its operating strategy will center on further cost reductions.

Pilbara Minerals said it expects to produce between 820,000 and 870,000 tons in the year through June 2026, at a unit cost of roughly A$560 to A$600 a ton.

It said it is taking "a disciplined" approach to capital expenditure given weak market conditions, and intends to spend between A$300 million and A$330 million in the year ahead. The miner reported capital expenditure of A$569 million for fiscal 2025, at the low end of guidance.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

July 29, 2025 19:51 ET (23:51 GMT)

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