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.

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

• Safety improved, with TRIFR reduced by 27% year-over-year to 3.4.

Financial highlights

• FY24 revenue: $1,254M (down 69% YoY); EBITDA: $538M (down 84% YoY); EBITDA margin: 43%.

• Underlying profit after tax: $318M (down 86% YoY); statutory profit after tax: $257M (down 89% YoY).

• Cash margin from operations: $513M; year-end cash balance: $1.6B (down 51% YoY).

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

• Operating costs (CIF): $818/dmt (down 25% YoY); operating costs (FOB): $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: $615–$685M.

• 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.

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

• FY25 guidance subject to risks from project integration, commissioning, and ramp-up of P680 and P1000.