Thrusting Australia into the battery age, Pilbara on Friday reported a 326 per cent increase in net profit to $2.4 billion for the year to June 30 compared to the group's maiden profit of $561.8 million a year ago.
Pilbara's Pilgangoora mine in Western Australia is the world's largest independent hard-rock lithium operation and an important supplier of raw battery minerals to China and the rest of the world.
CEO Dale Henderson told a webcast it has been a "breakthrough year" for Pilbara as a low-cost and sustainable producer, where everything has come together for "a magnificent set of results".
Chief financial officer Luke Bortoli said the company's strong cash position from record production and sales provides an opportunity for a share buyback, special dividend or a combination of the two.
But its shares fell 7.6 per cent or 39 cents to $4.72 as analysts questioned the cost and capital needed for growth from 2025 onwards.
Investment bank UBS told AAP the result was in line with expectations and profit guidance was "okay", but it "comes with higher capital expenditure, again".
Pilbara said a $2.7 billion increase in cash to $3.3 billion on the balance sheet gives total liquidity of $3.5 billion for expansion.
The mining company plans to add downstream chemical processing and other value-adding products, which also ties in with state and federal government ambitions to move beyond the "dig and ship" commodity economy of the past.
A mid-stream demonstration plant project, backed by a federal grant, aims to produce an enriched product with less waste and a smaller carbon footprint using renewable energy.
The joint venture with patented electric calcination technology from partner Calix also has the potential to improve the carbon intensity of the wider industry, according to the partners.
Surviving a market plunge known as the "lithium winter" in 2019, Pilbara has become a top-50 company on the ASX since its first shipment from Pilgangoora in 2018.
"The long-term outlook remains very positive for battery grade lithium raw materials with continued adoption of EVs and battery storage," Mr Henderson said.
He said it was "exciting" to think about the needs of utility-scale battery storage manufacturers as that starts to grow at pace.
Pilbara also announced a 35 per cent increase in ore reserves to 214 million tonnes and new research that will explore further expansion of production capacity.
Mr Henderson forecast a growing deficit in the key battery mineral as global demand outstrips supply.
But he anticipated further volatility in prices for lithium products in the short term, after a sharp correction in the past quarter.
"Despite this pullback strong margins continued to be realised," he added.
Group revenue rose 242 per cent to $4.1 billion, driven by a 68 per cent increase in sales volumes and an 87 per cent increase in average estimated realised price.
A 64 per cent increase in the amount of spodumene concentrate produced to 620.1 thousand tonnes, for sales of 607.5 thousand tonnes at an average realised price of $US4447 per tonne.
Production guidance for FY24 was between 660 to 690 thousand tonnes of spodumene concentrate.
Pilbara declared a fully franked final dividend of 14 cents per share for a total dividend of 25 cents per share, after an inaugural dividend delivered six months ahead of schedule in February.
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