PLS Posts Record FY26 Production and Sales, Advances P2000 Expansion

Record Production and Sales Drive Revenue Surge

PLS Group Limited (ASX:PLS) closed FY26 with a bang, posting record lithium concentrate production of 879.5kt and sales of 891.6kt, both up 17% year-on-year and exceeding guidance. This operational strength propelled revenue to a hefty A$1.934 billion, a 152% leap from FY25, fuelled by a 121% jump in average realised prices to US$1,488/t (SC5.2 CIF China basis) and higher volumes.

The June Quarter alone saw sales volumes hit a record 249.9kt, up 28% on the prior quarter, with an average realised price climbing 13% to US$2,107/t. Despite a slight production dip in the quarter to 214.3kt from 232.4kt, the company maintained solid operational performance, supported by improved ore sorting and lithium recovery at Pilgangoora.

Ngungaju Plant Restart Sets Up FY27 Growth

July 2026 marked the restart of the Ngungaju plant, a key growth catalyst for PLS. The plant is expected to ramp up to pre-care and maintenance production capacity within the first four months of FY27, underpinning the company’s guidance for FY27 spodumene production of 1,030kt to 1,100kt. This ramp-up is anticipated to drive steady production volumes for the remainder of FY27, despite scheduled maintenance shutdowns.

Unit operating costs (FOB) are forecast to rise marginally to between A$575 and A$625 per tonne, reflecting the higher operating costs of Ngungaju relative to Pilgangoora. The company continues to pursue operational efficiencies through its Cost Smart Future Ready program, aiming to keep costs disciplined amid expansion.

P2000 Expansion Feasibility Advances with Pre-FID Capital

PLS is pressing ahead with its P2000 Project, a potential doubling of Pilgangoora’s concentrate production capacity to approximately 2 million tonnes per annum. The feasibility study is on track for completion in the December Quarter 2026, exploring a new concentrator adjacent to existing facilities and the incorporation of underground mining via a pre-feasibility study.

In June, the company approved about A$175 million in pre-final investment decision (pre-FID) capital expenditure to accelerate the project’s timeline. This spend covers processing plant procurement, early works, and critical infrastructure upgrades including access road improvements. The final investment decision remains contingent on positive study outcomes, funding, and market conditions.

Brazil’s Colina Project and Chemicals Strategy Progress

On the diversification front, PLS is advancing the Colina Project in Brazil, with ongoing drilling, metallurgical testing, and infrastructure studies. Feasibility outcomes are expected by December 2027. The company is also evaluating early-stage pre-FID infrastructure investments, including roads and water supply, though these are not included in FY27 guidance.

Downstream, PLS’s joint venture with POSCO in South Korea continues to produce battery-grade lithium hydroxide, with 3,590 tonnes sold in the June Quarter. The Mid-Stream Demonstration Plant in Australia secured a $38.1 million government grant and an offtake agreement with Ronbay, with commissioning progressing on schedule for first product in the September Quarter 2026.

Financial Strength Bolstered by US$600 Million Bond

PLS’s balance sheet remains robust, closing June 2026 with A$2.29 billion in cash and total liquidity of A$2.79 billion. This was bolstered by strong operating cash flow of A$579 million in the quarter and net proceeds from a US$600 million senior unsecured notes issuance at 6.875%, used partly to repay A$375 million of the revolving credit facility and reduce its size.

Capital expenditure for FY26 reached A$328 million, within guidance, with a focus on mine development and infrastructure projects. The company plans to spend A$620 million to A$685 million in FY27, including sustaining, mine development, infrastructure, and growth capital, notably the P2000 pre-FID investment.