PLS said it is observing a widening and deepening demand profile for lithium, with energy security concerns contributing to growth in interest from customers and industry participants, according to chief executive Dale Henderson. The comments accompanied a quarter in which the Australian independent miner nearly doubled its lithium-related output and exceeded analyst forecasts.
Henderson highlighted feedback from customer and industry discussions held during a recent trip to China, noting these conversations aligned with other data pointing to a rebound in electric vehicle demand. "In aggregate, what were seeing in the sector is deepening and broadening demand and strong tailwinds for lithium operators," Henderson said. He also pointed to robust interest from the stationary battery market and nascent e-mobility segments such as electric trucks.
Investors reacted to the operating update, pushing PLS shares up as much as 6.2% to A$6.030. By 0225 GMT the stock was trading slightly below that peak at A$5.890.
Record quarter for spodumene production
PLS reported an 86% rise in third-quarter spodumene concentrate production, driven by a stronger-than-expected recovery at its Pilgangoora facility in Western Australia and a rebound in prices for the battery raw material. Recovery at Pilgangoora averaged around 75% during the quarter, a key factor behind the near-doubling of output.
For the quarter ended March 31, the miner produced a record 232,436 dry metric tons (dmt) of spodumene concentrate, topping the Visible Alpha consensus estimate of 215,000 dmt and sharply higher than the 124,978 dmt produced in the same period a year earlier. Spodumene shipments during the quarter rose to 195,691 dmt, up from 125,468 dmt a year earlier.
Management said it plans to ramp the Ngungaju plant in Western Australia to steady-state production through the September quarter, while major maintenance overhauls are scheduled for the current quarter. Henderson added that PLS is in negotiations with major chemicals producers over supply agreements and is seeking additional offtake deals on terms comparable to its benchmark agreement with Chinas Canmax announced in February.
Unit operating costs fell 11% sequentially to A$520 per metric ton, though the company cautioned these costs are expected to rise in the current quarter because of restart-related expenditures at Ngungaju.
"A clear beat, driven by stronger-than-expected production and a meaningful cost outperformance," said RBC Capital analyst Kaan Peker in a note.
PLS reaffirmed its 2026 production outlook of 820,000-870,000 tonnes. In addition, the company said it had secured a funding grant of up to A$38.1 million ($27.17 million) from the Australian Renewable Energy Agency (ARENA). The grant is intended to help support operating costs during the Mid-Stream Demonstration Plants validation phase. ($1 = 1.4023 Australian dollars)