PLS Gains on ASX as Record Production Puts Expansion Plans in Focus

Highlights

• Quarterly output reaches a record, although lower lithium prices reduce sales revenue.
• Fortescue electricity deal offers future savings as PLS advances its expansion.
• Substantial cash reserves support investment, with project delivery becoming the next major test.

Production Reaches New Peak

PLS Group Limited (ASX: PLS) traded at AU$3.080, representing a surge of 6.9%. On 28 October 2026, the company announced its September quarterly results alongside a long-term electricity supply agreement.

Quarterly spodumene concentrate output climbed 25% to 267,600 tonnes, compared to 214,300 tonnes previously. Improved performance at Pilgan and renewed production from Ngungaju lifted volumes.

Shipments, however, dropped 11% to 223,600 tonnes because of delivery timing. The estimated realised selling price decreased 14% to US$1,809 per tonne, or US$2,077 per tonne on an SC6-equivalent basis. Consequently, revenue fell 24% to AU$563 million, compared to AU$743 million.

Lower Costs Support Operations

Operating costs declined 12% to AU$539 per tonne as efficiency gains and greater capitalisation of waste movement reduced expenses.

Cash margin from operations was AU$392 million, compared to AU$579 million, excluding provisional pricing adjustments. Quarterly capital spending reached AU$185 million. After paying AU$161 million in dividends, PLS finished September with AU$2,217 million in cash, AU$1,277 million in net cash and AU$2,717 million in total liquidity.

Energy Agreement Strengthens Growth Plans

The company secured a 20-year agreement with Fortescue covering minimum annual electricity deliveries of 325 GWh. Supply is targeted from 2029, with anticipated operating cost savings of AU$15–20 per tonne.

Associated power infrastructure requires approximately AU$150 million.

Meanwhile, the AU$1.9 billion P2000 development aims to lift annual capacity to approximately two million tonnes. First production is scheduled for the September quarter of 2029. Project estimates indicate incremental post-tax net present value of AU$2.7 billion and a 29.5% internal rate of return. Updated reserves total 249.2 million tonnes at 1.24% lithium oxide.

Outlook Hinges on Execution

FY27 output guidance remains 1.03–1.10 million tonnes, with costs of AU$575–625 per tonne. Capital spending is forecast at AU$1,130–1,195 million.

The completed US$700 million notes offering provides additional funding flexibility, while lithium prices, seasonal operating pressures and construction progress remain central to the company’s next phase.

Note- All data presented is based on information available at the time of writing.

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