PLS Group (PLS) Q2 2025 TU earnings summary

Executive summary

• Achieved strong operational performance in the December quarter FY25, producing 188,000–188,200 dmt and shipping 204,000–204,100 dmt, as expansion projects progressed and the P850 operating model was implemented to reduce costs.

• Transitioned Ngungaju plant into care and maintenance, supporting cost improvements and operational efficiency.

• 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.

• Acquisition of Latin Resources approved and nearing completion, diversifying revenue and expanding into new markets.

Financial highlights

• December quarter revenue was AUD 216 million, up 3% sequentially, driven by a 3% increase in 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 CapEx.

• Cash margin from operations was negative AUD 8 million for the quarter (adjusted positive AUD 32 million), and positive AUD 41 million for H1 FY25.

• Total CapEx for H1 FY25 was AUD 436 million (cash basis), weighted to the first half due to project expansions.

Outlook and guidance

• P1000 Project commissioning underway, with ramp-up expected to complete by end FY25, supporting future growth and lower unit costs in FY26.

• Guidance incorporates ramp-up impacts for new circuits, with expectations for stronger performance as integration stabilizes.

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

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

• No change to capital allocation strategy; emphasis on balance sheet strength and disciplined investment.