Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
PLS Group Shares Rise as Company Approves AU$1.9 Billion Pilgangoora Expansion
Highlights
PLS Approves P2000 Final Investment Decision
PLS Group Limited (ASX: PLS) announced on 16 October 2026 that it had approved the Final Investment Decision (FID) for its P2000 expansion at the wholly owned Pilgangoora Operation in Western Australia. The project is designed to increase spodumene concentrate production to approximately 2 million tonnes per annum (Mtpa), with first production expected in the September quarter of calendar year 2029.
The expansion involves constructing a new processing facility named Jimmagunya, alongside associated infrastructure. According to the completed feasibility study, the project is expected to improve processing efficiency, reduce waste movement and strengthen the operation's long-term cost competitiveness.
PLS estimates project capital expenditure at approximately AU$1.9 billion. The expansion is forecast to generate an incremental post-tax NPV of AU$2.7 billion, calculated using an 8% real discount rate, and a post-tax internal rate of return of 29.5%, based on the company's stated assumptions.
Production Growth and Operating Efficiency
The P2000 project is expected to deliver average annual production of approximately 1.97 million tonnes of SC5.2 spodumene concentrate over the first ten years at steady state. Average unit operating costs are projected at around AU$620 per tonne on a real free-on-board basis over the same period.
The feasibility study incorporates a 9.0 million tonnes per annum dry plant and a 6.3 million tonnes per annum wet processing plant at Jimmagunya. Improved metallurgical understanding and ore-sorting capabilities have also enabled approximately 67 million tonnes of mineralised material previously classified as waste to be included as economically recoverable ore. Separately, PLS reported an updated Pilgangoora Ore Reserve of 249.2 million tonnes at 1.24% lithium oxide (Li₂O). This represents a 23% increase in reserve tonnes and a 31% rise in contained lithium compared with the previous estimate. The update includes a maiden underground Ore Reserve of 46.5 million tonnes at 1.50% Li₂O.
Infrastructure Investment to Support Expansion
Alongside P2000, PLS intends to invest AU$600–650 million in infrastructure improvements through FY2029. The programme includes upgrading and sealing approximately 24 kilometres of Wodgina Road East, constructing a permanent 1,200-bed village and developing a new mine services facility.
The road upgrade is expected to reduce daily concentrate-haulage movements by approximately 35%, while the new facilities are intended to improve workforce accommodation, equipment availability and maintenance productivity. PLS said the P2000 expansion would be funded through its existing cash balance and operating cash flows, with debt funding opportunities assessed as required.
PLS Group Share Price
PLS Group Limited shares were trading at AU$3.075, up AU$0.104 or 3.535%, according to the supplied market data. The approved expansion, increased Ore Reserve and planned infrastructure investment mark a significant development phase for Pilgangoora. However, the production targets and projected financial returns remain subject to construction, commissioning and the assumptions outlined by the company.
Note- All data presented is based on information available at the time of writing.
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