Pilbara Minerals share price drops as CFO announces resignation

It's been a challenging few years for outgoing Pilbara Minerals CFO Luke Bortoli.

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It's been a challenging few years for outgoing Pilbara Minerals Ltd (ASX: PLS) Chief Financial Officer (CFO) Luke Bortoli.

The Pilbara Minerals share price continued its decline on Tuesday as the lithium miner announced that CFO Luke Bortoli will leave the company.

Pilbara Minerals stated Bortoli is leaving to pursue other opportunities, but will remain in the role during a transition period "to allow for an orderly handover of responsibilities".

Bortoli was CFO of Afterpay before joining Pilbara Minerals in early 2023.

Managing Director and CEO Dale Henderson said Pilbara Minerals will commence a formal search process to identify and appoint a new Chief Financial Officer.

Luke has played a key role in strengthening our financial and operational platform during a period of significant growth and transformation. 

Notable achievements include securing the Company's $1 billion Revolving Credit Facility and supporting the successful acquisition of Latin Resources, among other major milestones.

Downward spiral

The Pilbara Minerals share price continued its decline on Tuesday, with the company's shares now trading at around $1.13.

The company has been hit with falling lithium prices amid global oversupply issues, which have seen the price of spodumene sink to four-year lows.

As such, Bortoli's tenure at Pilbara Minerals was marred by declining lithium prices, which have steadily fallen since he joined the company.

At one point back in November 2022, Pilbara Minerals shares were changing hands for about $5.37 each.

Pilbara Minerals shares are down almost 80% from their 2023 highs and threaten to sink below $1.

Although things are expected to pick up in the longer term, recent news about the company leaves investors with little to celebrate for now.

Pilbara Minerals reported in its quarterly update that it produced 125kt of lithium (spodumene), which is down 34% quarter over quarter.

The miner also stated it sold 125.5kt of lithium, down 39% on the previous quarter.

The company is positioned to continue to withstand a degree of lithium price volatility, propped up by the credit facility Bortoli helped secure.

In its March Quarter Activities Presentation, Pilbara Minerals also reported $1.1 billion in cash and an undrawn credit facility of $625 million.

That brings Pilbara Minerals' total liquidity to around $1.7 billion.

Mixed views

And while it's certain those funds can't last forever, different views of Pilbara Minerals' ability to effectively utilise that capital continue to emerge.

Broker Bell Potter has forecast a loss of $68 million this year but expects Pilbara Minerals to return to profit in the following years.

Macquarie sees significant upside in the Pilbara Minerals share price at its current level and sets a target of $2.40.  

UBS appears less optimistic and recently downgraded Pilbara Minerals to a sell rating, along with other lithium players, IGO Ltd (ASX: IGO) and Liontown Resources Ltd (ASX: LTR). 

Still, while some are factoring a rebound in the price of lithium sooner than others, the future for all lithium players is clearly uncertain.

Motley Fool contributor Steve Holland has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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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