PLS Group (PLS) Q4 2024 TU earnings summary

Executive summary

• Achieved record June quarter production of 226.2k dmt spodumene, up 26% from the prior quarter, with sales up 43% to 235.8k dmt and revenue up 58% to AUD 305 million, despite a softer lithium market and declining prices through 2023.

• FY24 production of 725,000 tonnes exceeded guidance, with unit operating cost (FOB) of AUD 654/t and capex of AUD 865 million both within plan.

• Cash balance at 30 June 2024 was AUD 1.6 billion, maintaining a strong position despite a AUD 156 million reduction due to ongoing expansion investments.

• Major expansion projects (P680, P1000, P2000) are progressing on schedule and budget, supporting future capacity and cost improvements.

• Downstream JV with POSCO produced initial lithium hydroxide volumes; Train 1 at 45% of nameplate, Train 2 commissioning in H2 2024.

Financial highlights

• June quarter revenue was AUD 305 million, up 58% from the March quarter, driven by a 43% increase in sales volume and a 4% higher average realized price.

• FY24 revenue was AUD 1.3 billion, a 69% decline from FY23 due to a 74% drop in average realized price, despite a 17% increase in production.

• Cash margin from operations in FY24 was AUD 513 million; after capex and mine development, margin was AUD 282 million.

• Cash balance at 30 June 2024 was AUD 1.6 billion, down from AUD 3.3 billion a year ago, mainly due to capex and tax payments.

• FY24 unit operating cost (FOB) was AUD 654/t, up 7% year-over-year; CIF cost fell 25% to AUD 818/t.

Outlook and guidance

• FY25 production guidance is 800,000–840,000 tonnes, reflecting integration and ramp-up of P680 and P1000 expansions, with operational impacts expected from plant shutdowns and optimization.

• FY25 unit operating cost (FOB) guidance is AUD 650–700 per tonne, with some non-recurring costs included.

• FY25 capital expenditure guidance is AUD 615–685 million, with detailed allocation across growth, mine development, sustaining, and infrastructure.

• P2000 pre-feasibility study released, targeting >2Mtpa production and 23-year mine life; feasibility study outcomes expected December quarter CY25.

• Mid-stream demonstration plant to produce first lithium salt in June quarter 2025.