Pilbara Minerals (ASX:PLS) has announced the details of its Capital Management Framework on the back of strong operating performance and cash flow.

Pilbara says the Framework prioritises allocation of capital first to maintaining safe and reliable operations, as well as near term productivity initiatives designed to maximise cash being generated from operations.

The Framework also includes an inaugural dividend policy, with a target dividend payout ratio of between 20-30% of free cash flow.

Pilbara?s cash balance at the end of September this year was $1.375B.