PLS Enhances Output, Reduces Costs at Pilgangoora
TL/DR –
Pilbara Minerals has reported stable Q3 production results at its Pilgangoora operation in Western Australia, with improved pricing, higher lithium recoveries, and reduced operating costs. The firm’s production totaled 224,800 tonnes of spodumene concentrate, up 2% from Q2, while sales totalled 214,000 tonnes, and prices increased by 24% to $742 per tonne. Revenue rose 30% to $251m, underpinned by stronger prices and stable operations, while the firm ended the quarter with $852m in cash and an undrawn $625m credit facility.
Pilbara Minerals Reports Encouraging Third Quarter Results
Pilbara Minerals has brought forth promising Q3 production outcomes from its Pilgangoora lithium-tantalum operation in Western Australia. Owing to better lithium recoveries, enhanced pricing, and robust cost performance, the results of the quarter have remained steady, particularly after the firm’s P1000 expansion.
In the quarter, the company manufactured 224,800 tonnes of spodumene concentrate, a two per cent rise from the preceding quarter, with total sales hitting 214,000 tonnes.
The average realized prices saw a 24 per cent hike to $US742 per tonne based on cost, insurance and freight (CIF) China, SC5.3, translating to $US841 per tonne on an SC6 basis. Assisted by these improved prices and stable operations, the firm’s revenue jumped 30 per cent to $251 million.
Simultaneously, Pilbara Minerals managed to cut down its operating costs – the unit operating costs (free on board) dropped 13 per cent to $540 per tonne. This was made possible due to an increase in mining volumes and the efficiency of the company’s owner-operator model.
Furthermore, lithium recoveries soared to 78.2 per cent, a significant improvement from 71.6 per cent in the previous quarter. This marks the highest recovery performance since the P1000 expansion.
In the same quarter, Pilbara Minerals mined 1.7 million tonnes of ore and 7.7 million tonnes of overall material, indicating an uptick in operational capacity and ore supply security ahead of the wet season.
At the end of Q3, the firm had $852 million in cash and a $625 million credit facility that hasn’t been drawn, sustaining a robust balance sheet within the lithium industry.
The mid-stream demonstration plant construction, taking place in Western Australia (WA), is progressing on time, with completion planned by December 2025.
In South Korea, moderated batch processing continued in the POSCO Pilbara Lithium Solution (P-PLS) joint venture to conserve capital due to the softened global demand resulting from alterations to the United States’ Inflation Reduction Act.
During Q3, Train 1 and Train 2 produced 2773 tonnes and 2040 tonnes of lithium hydroxide respectively, with Train 2 securing first customer certification.
For 2026, the partners have decided to temporarily lower the spodumene off-take volumes to approximately 150,000 tonnes. This provides Pilbara Minerals with the leeway to redistribute product to other clients.
In addition, the firm has made headway in its downstream partnership study with Ganfeng. Both parties have completed a feasibility study and have extended the commercial framework until 2027 to allow extra time for site selection and market evaluation.
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