Pilbara Minerals Ltd (ASX:PLS) delivered stable production and higher pricing in the September quarter, helping revenue rise 30% quarter-on-quarter even as cash reduced on project spend and timing of receipts.
Key numbers (September Q vs June Q)
- Production: 224.8kt vs 221.3kt (+2%).
- Sales: 214.0kt vs 216.0kt (-1%).
- Average realised price: US$742/t on ~SC5.3 basis (SC6.0 equivalent US$841/t), up ~20–24% on June quarter benchmarks.
- Revenue: A$251m vs A$193m (+30%).
- Unit operating cost (FOB): A$540/t (US$353/t), down 13%. CIF A$645/t (US$422/t), down 11%.
- Cash: A$852m vs A$974m (-13%). Cash fell mainly due to A$78m capex and working-capital timing, including ~A$50m of customer receipts slipping into early December quarter and ~A$32m final pricing adjustments on June shipments.
Operations
PLS reported steady output from the Pilgan Plant post-P1000 expansion, with lithium recovery improving to 78.2% from 71.6%. Mining volumes increased as the company advances its shift to an owner-operator model; new haul trucks are due in the December quarter. Management continues to optimise the “P850 operating model” using more contact ore and ore sorting to lift efficiency, noting some recovery variability is possible as this strategy progresses.
Costs
FOB unit costs fell 13% to A$540/t, reflecting efficiencies after the P1000 project and ongoing optimisation. The company cautions unit costs may face seasonal pressure through the wet season but expects FY26 FOB costs to remain within guidance.
Sales mix and by-product
Quarterly sales were 214.0kt of spodumene concentrate at an average ~SC5.3% grade; tantalite sales totalled ~66,161 lb after adjustments.
Chemicals & downstream
At the POSCO–PLS hydroxide JV in South Korea, both trains ran moderated batch campaigns amid market volatility tied to the expiry of certain US IRA incentives and tariffs. Train 1 produced 2,773t (3,245t sold), Train 2 produced 2,040t and achieved first customer certification (1,593t sold). For CY26, JV spodumene offtake is planned at ~150kt, with scope to increase subject to demand; this gives PLS flexibility to redirect tonnes to other customers.
Growth options
- Ngungaju remains on care and maintenance through FY26, preserving capacity optionality if prices strengthen.
- P2000: feasibility on >2.0Mtpa expansion expected in FY27; timing contingent on studies, funding and pricing.
- Colina (Brazil): infill/expansion drilling and target testing continued; outcomes targeted for the June quarter 2026.
- Ganfeng downstream FS: feasibility completed post-quarter; moving to detailed site selection and seeking to extend the commercial framework’s sunset date to December 2027.
Balance sheet & cash flow
Closing cash was A$852m with an undrawn A$625m facility. Cash margin from operations was A$8m; adjusting for ~A$50m of delayed receipts, this would have been ~A$58m. Total cash capex was A$78m (A$55m accrued) across infrastructure/projects (A$28m), mine development (A$20m) and sustaining (A$7m).
Outlook
PLS expects continued optimisation benefits but flags typical wet-season cost headwinds and recovery variability as it increases contact ore processing. FY26 cost guidance is unchanged.