PLS Group (PLS) Q2 2025 TU earnings summary

Executive summary

• Achieved strong operational performance in the December quarter, producing 188,000–188,200 dmt and shipping 204,000–204,100 dmt, as expansion projects including P850 and P1000 progressed.

• P1000 Project construction is 95% complete with commissioning underway; P850 operating model implemented to reduce costs.

• Latin Resources acquisition approved and expected to complete in early February, diversifying revenue and expanding into new markets.

• No recordable injuries in December quarter; TRIFR improved to 3.59, best safety performance in three years.

• Maintained 'AA' MSCI ESG rating, reflecting strong sustainability commitment.

Financial highlights

• December quarter revenue was AUD 216 million, up 3% sequentially, driven by a 3% rise in average realized price to $700/tonne, despite a 5% drop in sales volume.

• H1 FY25 revenue was AUD 426 million, down 44% year-over-year due to a 58% lower average realized price.

• Cash balance at 31 December was AUD 1.2 billion, down AUD 182 million from the prior quarter, mainly due to capital expenditure.

• Cash margin from operations was negative AUD 8 million for the quarter (impacted by timing), but positive AUD 41 million for H1 FY25.

• Unit operating cost (FOB) was AUD 621/tonne for the quarter, up 2% sequentially; H1 FY25 unit costs were AUD 614/tonne, down 11% year-over-year.

Outlook and guidance

• FY25 is a ramp-up year, with integration of P680 and P1000 projects expected to drive improved unit cost performance in FY26.

• Guidance incorporates expected operational impacts from new circuit integrations and ramp-up activities.

• Full ramp-up of POSCO JV Train 2 expected within 12–18 months; customer certification process to start in H1 CY25.

• Focus remains on cost reduction, operational efficiency, and maintaining a strong balance sheet.

• P2000 feasibility study on track for December quarter 2025, providing further expansion optionality.