PLS Group (PLS) investor relations material

Executive summary

• Record September-quarter spodumene production of 267.6kt, up 25% QoQ; lower FOB costs and weaker realised pricing contributed to A$563M revenue, down 24%.

• Ngungaju returned to full operational status by end-October; FY27 production and unit-cost guidance remained unchanged.

• P2000 received FID, supported by a 20-year Fortescue power agreement and post-quarter US$700M notes issuance.

Financial highlights

• Revenue was A$563M, down 24% QoQ; estimated realised price was US$1,809/t on ~SC5.2 product, down 14%, while sales volumes were affected by shipment timing.

• FOB unit operating cost fell 12% QoQ to A$539/t, supported by operating efficiencies and greater capitalised waste.

• Cash margin from operations was A$392M; excluding mine development and sustaining capital, cash margin was A$321M.

• CapEx was A$185M, up 50% QoQ; quarter-end cash was A$2,217M, net cash A$1,277M and total liquidity A$2,717M.

• Negative provisional pricing adjustments were A$69M at 30 September and estimated at A$88M as at 26 October; final adjusted prices may vary.

Outlook and guidance

• FY27 production guidance remains 1,030–1,100kt and FOB unit-cost guidance A$575–625/t; costs are expected to rise through the year with wet-season and other pressures.

• FY27 CapEx guidance is A$1,130–1,195M, including A$500M P2000 growth capex, A$185M enhancing capex, A$85–100M sustaining capital and A$250–280M mine development.

• P2000 targets ~2Mtpa capacity, first production in September quarter CY2029 and a ~6-month ramp-up; 10-year average real FOB cost is forecast at ~A$600/t.

• P2000 estimated incremental post-tax NPV is A$2.7B, with 29.5% IRR, based on long-term SC6 pricing of US$1,620/t and stated assumptions.

• Colina feasibility study outcomes are scheduled for December quarter 2027; development depends on study results, funding and supportive markets.