PLS Group (ASX: PLS) – PLS September Quarter FY27 Activities

PLS Group Limited has approved the Final Investment Decision for its P2000 expansion project, moving forward with a A$1.9 billion capital investment that will increase annual production capacity from approximately 1,270 kilotonnes to 2 million tonnes per annum at Pilgangoora. The company forecasts the project will deliver an incremental net present value of A$2.7 billion on an 8 percent real, post-tax discount rate basis, with first production targeted for the September quarter of calendar year 2029. The expansion represents a substantial step toward cementing PLS’s position as a top-tier global lithium producer with significant scale.

Operationally, the September quarter delivered record production of 267.6 kilotonnes, up 25 percent from the previous quarter, with unit operating costs declining 12 percent to A$539 per tonne. The improvement reflects strong performance from the Pilgangoora plant and the successful restart of the Ngungaju circuit. Sales reached 223.6 kilotonnes at an average realized price of US$1,809 per tonne on a SC5.2 basis, though subsequent price movements have moderated this figure. Group revenue of A$563 million reflected the impact of lower average realized prices and shipment timing, partly offset by favourable foreign exchange movements.

A particularly significant development came post-quarter end with the execution of a 20-year power purchase agreement with Fortescue. The agreement commits Fortescue’s green grid supply to support Pilgangoora’s growing power demand and is expected to reduce unit operating costs by A$15 to A$20 per tonne while materially reducing emissions intensity. This arrangement effectively locks in long-term energy cost predictability, a material consideration for lithium producers operating in a volatile commodity market. The agreement also supports future growth capacity beyond the P2000 project.

Alongside the FID approval, PLS announced enhancements to operational infrastructure totalling approximately A$600 million to A$650 million in capital expenditure. These include sealing a 24-kilometre access road to the operation, constructing a new permanent village to replace an existing facility, and building a new heavy mobile equipment service facility. These supporting investments are designed to improve productivity and reduce operating costs independently of the P2000 project.

The company’s financial position has been strengthened further through the successful completion of a US$700 million 8 percent Senior Unsecured Notes offering, bringing total debt maturity extension to 5.3 years weighted average. Combined with an existing undrawn A$500 million revolving credit facility, PLS reported total liquidity of A$2.7 billion at quarter end, providing capacity for the P2000 expansion and other growth opportunities. The balance sheet foundation supports the substantial capital deployment program ahead.

The lithium market environment remains volatile despite structural demand growth. Investors should monitor the P2000 project execution over the next three years, progress on the power transmission connection and infrastructure upgrades, and how commodity pricing evolves through the development phase. This announcement is price sensitive and has been flagged as material by the ASX.

View the full ASX announcement (PDF)

About PLS Group Limited (ASX: PLS)

PLS Group Limited is a global producer of lithium materials that explores, develops, and operates mineral resources with a focus on lithium extraction. The company owns and operates the Pilgangoora lithium mine in Western Australia’s Pilbara region and the Colina Project in Brazil, with spodumene concentrate primarily exported to lithium chemical converters in China. The company is also integrated into the lithium value chain through a joint venture with POSCO in South Korea for battery-grade lithium hydroxide production.

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