Pilbara Minerals Posts 221kt Spodumene, Cuts Unit Costs 10% in June Quarter
Pilbara Minerals delivered a standout June quarter with record spodumene production and robust financials, beating FY25 guidance and setting ambitious targets for FY26 amid ongoing market challenges.
- Record June quarter spodumene production of 221.3kt following P1000 expansion
- Sales volume up 72% quarter-on-quarter with revenue rising 28% to A$193 million
- Unit operating costs fell 10% to A$619/t FOB due to operational efficiencies
- FY25 guidance exceeded on production, costs, and capital expenditure
- FY26 guidance targets higher production (820-870kt) and lower unit costs (A$560-600/t)
Record Production and Operational Efficiency
Pilbara Minerals Limited (ASX, PLS) reported a strong June quarter for 2025, highlighted by a record 221.3 thousand tonnes of spodumene concentrate produced at its Pilgangoora Operation. This surge follows the completion and optimisation of the P1000 plant expansion, which has significantly boosted processing capacity and plant availability.
The company’s sales volume jumped 72% compared to the prior quarter, reaching 216.0kt, while revenue climbed 28% to A$193 million despite a 17% decline in realised lithium prices on a comparable grade basis. These results underscore Pilbara’s ability to leverage operational scale to offset pricing headwinds in a volatile lithium market.
Cost Control and Strong Balance Sheet
Unit operating costs on a free-on-board (FOB) basis fell 10% quarter-on-quarter to A$619 per tonne, reflecting improved efficiencies from the expanded Pilgan plant and the P850 operating model. This cost reduction is particularly notable given the increased mining and production volumes during the period.
Despite capital expenditure of A$116 million, primarily on infrastructure and the P1000 project completion, Pilbara ended the quarter with a robust cash balance of approximately A$1.0 billion. The company’s disciplined capital allocation and cost control initiatives have positioned it well to navigate ongoing market volatility.
Resource Growth and Strategic Projects
In June 2025, Pilbara announced a 23% increase in contained lithium at Pilgangoora, lifting the total measured, indicated, and inferred mineral resource to 446 million tonnes at 1.28% lithium oxide. This reinforces Pilgangoora’s status as one of the world’s largest hard-rock lithium operations and provides a strong foundation for future growth.
On the downstream front, the joint venture with POSCO in South Korea continues to progress, with lithium hydroxide production ramping up and customer certifications expanding. This integration into the lithium value chain enhances Pilbara’s strategic positioning amid evolving global supply dynamics.
Outlook and FY26 Guidance
Having met or exceeded all FY25 guidance metrics, Pilbara Minerals has set ambitious targets for FY26. Production is forecast to rise to between 820,000 and 870,000 tonnes of spodumene concentrate, while unit operating costs are expected to decline further to between A$560 and A$600 per tonne. Capital expenditure guidance has been reduced to A$300-330 million, reflecting a more disciplined approach focused on sustaining and efficiency-enhancing investments.
The company’s strategy emphasizes operational excellence, cost discipline, and capital efficiency to unlock the full value of recent investments. With the Pilgan plant optimised and the ore sorting facility enhancing feed flexibility, Pilbara is well placed to maintain steady production and improve margins despite ongoing lithium price pressures.
Bottom Line?
Pilbara Minerals’ strong operational momentum and disciplined strategy set the stage for continued resilience and growth in a challenging lithium market.
Questions in the middle?
- How will Pilbara manage lithium price volatility amid increased production?
- What are the timelines and market implications of the POSCO JV’s lithium hydroxide certification ramp-up?
- When will exploration results from the Colina Project in Brazil be released, and how might they impact Pilbara’s resource base?
