PLS Group (PLS) H2 2024 earnings summary

Executive summary

• Record FY24 production of 725,329 dmt and sales of 707,133 dmt, but revenue and profit declined sharply due to a 74% drop in average realised lithium prices year-over-year.

• Major expansion projects (P680, P1000) progressed on schedule, supporting future growth and cost efficiency.

• Strategic acquisition of Latin Resources announced, diversifying revenue and expanding international presence.

• Significant improvement in safety metrics, with TRIFR down 27% year-over-year.

• Strong balance sheet maintained with $1.6B cash and net cash of $1.3B at year-end, despite significant tax, capex, and dividend outflows.

Financial highlights

• FY24 revenue: AUD 1.2 billion (down 69% YoY); EBITDA: AUD 538 million (43% margin, down 84% YoY); statutory profit after tax: AUD 257 million (down 89% YoY); underlying profit after tax: AUD 318 million (down 86% YoY).

• Cash margin from operations: AUD 513 million; year-end cash balance: AUD 1.6 billion; net cash: AUD 1.3 billion.

• Net cash outflow of AUD 1.7 billion, mainly due to tax payments, CapEx, and dividends.

• Operating costs (excluding depreciation) improved 14% to AUD 579 million; unit operating cost (CIF) fell 25% to $818/dmt.

• Unit operating cost (FOB, ex-royalties/shipping): $654/dmt, up 7% YoY.

Outlook and guidance

• FY25 production guidance: 800,000–840,000 dmt; unit operating cost (FOB): A$650–700/dmt; CapEx: AUD 615–685 million.

• Focus remains on cost efficiency, disciplined capital deployment, and maintaining a strong balance sheet.

• No final dividend declared for H2 FY24 to preserve balance sheet strength; capital management framework updated with a target leverage ratio <1.5x and dividend payout ratio of 20–30% of free cash flow.

• P1000 project on track for completion in FY25; feasibility study for P2000 due December quarter next year.

• Cost investment in FY25 includes non-recurring items for project integration and ramp-up.