18 December 2023
LIBERTY Primary Metals Australia (LPMA) this month announced strong financial and operating results for the financial year ending 30 June 2023 with $142.3M in net profit after tax and a significant increase in capital expenditure despite a challenging business environment globally.
FY23 result highlights:
- Debt – $0 (down from $155.5M)
- Net profit – $142.3M
- Revenue – A$3,038M (down 2%)
- EBITDA – A$475.3M
- Capital expenditure – $389M (up 50%)
The strong performance during the period allowed LPMA to reinvest $389 million, a 50 per cent increase on FY22, into the business, with a particular focus on iron ore operations at Whyalla where the magnetite expansion project is underway.
LPMA’s magnetite expansion project will increase the supply of high quality (70 per cent + Fe content) ore for lower carbon and green iron production using hydrogen and will feed a new electric arc furnace in Whyalla.
During the period LPMA also repaid the remaining amount of $155.5M of the restructured debt, clearing the group of all third-party debt as of 30 June 2023.
The period also included the transition of coking coal mining from Tahmoor North to Tahmoor South. The planned transition saw a brief reduction in output but the shift has ensured the colliery’s long-term future.
“The disciplined and hard work of our team has ensured a strong result for LIBERTY Primary Steel Australia despite very difficult markets which are driving down the market price and demand for steel products globally,” CEO Primary Steel and Mining, Theuns Victor said.
“LPMA’s performance has also enabled us to increase by 50 per cent the amount we invest back into our operations with a focus on our magnetite expansion project which is key to the transformation at Whyalla and our vision to decarbonise steel making.
“With demand for steel expected to increase and commodity prices expected to remain robust, LPMA is well placed to remain in a strong position for FY24 and support the transition to low carbon steel making.”