PLS Group (ASX: PLS) – Q3 2026 Quarterly Activities Report

PLS has taken a Final Investment Decision to invest A$1.9 billion in the P2000 Project, approving a doubling of Pilgangoora’s production capacity to approximately 2 million tonnes per annum of spodumene concentrate with first ore expected in September 2029. The project is forecast to deliver an incremental post-tax NPV of A$2.7 billion at an 8 percent discount rate, based on a long-term SC6 price assumption of US$1,620 per tonne, with an internal rate of return of 29.5 percent. This represents the company’s most significant growth initiative to date and signals confidence in the structural demand for lithium despite near-term price volatility.

The September quarter itself demonstrated strong operational momentum. Production reached a record 267.6 thousand tonnes, up 25 percent from the prior quarter following the restart of the Ngungaju processing plant in July. The plant reached full operational status by the end of October, contributing to a 74.7 percent lithia recovery rate at Pilgangoora. Sales volumes of 223.6 thousand tonnes were modestly impacted by port delays at Port Hedland, yet an average realised price of US$1,809 per tonne on an SC5.2 basis provided solid cash generation. Unit operating costs fell to A$539 per tonne (US$381/t), reflecting operational efficiencies and a greater volume of capitalised waste across both processing plants.

A material catalyst emerged post-quarter when PLS executed a 20-year power purchase agreement with Fortescue’s subsidiary, FMG Clean Energy. The agreement supplies a minimum of 325 gigawatt-hours per annum from Fortescue’s renewable energy network, with an estimated reduction in P2000 unit operating costs of approximately US$15 to US$20 per tonne. Beyond cost reduction, the Fortescue connection is forecast to reduce power-related emissions intensity by approximately 80 percent, from a 0.69 tCO2-e/MWh baseline to approximately 0.13 tCO2-e/MWh, materially advancing the company’s net zero 2040 targets. The transmission infrastructure investment of approximately A$150 million across FY27 to FY29 is sized to accommodate future optionality including potential underground mining and fleet electrification without requiring additional transmission capacity.

PLS strengthened its financial position by completing a US$700 million issuance of 8 percent Senior Notes due 2032, its second public debt offering in the US capital markets. Combined with an existing cash balance of A$2.2 billion and total liquidity of A$2.7 billion at September 30, the company has ample capacity to fund the P2000 capital program and approximately A$600 to 650 million in enhancing infrastructure investments over FY27 to FY29, which include upgrading the Wodgina Road East access route, building a new 1,200-bed permanent village, and constructing a mine services facility. The Pilgangoora Ore Reserve was also updated to reflect a 31 percent increase in contained lithium, with approximately 67 million tonnes of previously classified waste ore now economically recoverable within the P2000 mine plan.

Investors should monitor the execution of P2000 construction timelines, customer demand trajectories for lithium hydroxide from the POSCO joint venture, and progress at the Colina project in Brazil where the feasibility study remains on schedule for completion in the December quarter 2027. The 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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