PLS Group (PLS) Q1 2025 TU earnings summary

Executive summary

• Achieved strong operational performance in the September quarter with 220,100 dmt produced and 214,500 dmt sold, maintaining high lithium recoveries at 75.3%.

• Revenue was $210 million, down 31% from the previous quarter due to a 19% drop in realized prices and 9% lower sales volume.

• Strategic decision to place the higher-cost Ngungaju plant into care and maintenance, optimizing operations around the lower-cost Pilgan plant.

• Maintained a strong cash balance of $1.4 billion at quarter-end, down $274 million mainly due to $214 million in capital expenditure.

• Announced acquisition of Latin Resources to diversify revenue and expand into new markets, with completion expected by early 2025.

Financial highlights

• Group revenue for the quarter was $210 million, a 31% decrease from the prior quarter.

• Average realized price fell 19% to $682/dmt; unit operating costs (FOB) rose 3% to $606/dmt, CIF costs fell 2% to $717/dmt.

• Cash margin from operations was $49 million; after capex and mine development, operational cash margin was -$2 million.

• Total capex spend was $214 million, with $103 million for growth projects.

• Cash outflow of $274 million mainly driven by growth capex; new A$1 billion revolving credit facility established post-quarter.

Outlook and guidance

• FY25 production guidance revised to 700–740kt (from 800–840kt) under the new P850 model, with unit cost (FOB) guidance lowered to $620–640/dmt.

• Capex guidance reduced to $565–610 million; expected ~$200 million cash flow improvement in FY25 from cost optimisation.

• Pilgan plant to be sole operating facility in FY25; Ngungaju plant placed into care and maintenance.

• All long-term offtake agreements remain satisfied under the revised plan.

• Long-term lithium market outlook remains robust, but near-term prices subdued; further market rebalancing needed for price improvement.