Australian lithium miner PLS produced a record 267,600 tonnes of spodumene concentrate at Pilgangoora in the September quarter, up 25%, helped by the restart of its Ngungaju plant. Revenue still fell 24% because it sold less and received lower prices.
At a glance
- Unit operating costs fell 12% to A$539 a tonne from A$616 in the June quarter.
- The average realised price fell 14% to $1,809 a tonne.
- PLS kept its full-year production guidance of 1.03 million to 1.10 million tonnes.
Background
Spodumene concentrate is a lithium-rich mineral that refiners turn into chemicals for electric vehicle batteries. PLS runs the Pilgangoora operation in Western Australia, which has two processing plants, Pilgan and Ngungaju. Ngungaju was restarted in July.
What happened
PLS produced a record 267,600 tonnes of spodumene concentrate at Pilgangoora in the September quarter, up 25% from the June quarter, Australian Mining reported. The restart of the Ngungaju plant in July added output, alongside better feed quality and steady performance at the main Pilgan plant.
Unit operating costs fell 12% to A$539 a tonne, which PLS put down to efficiency gains and more capitalised waste.
Why revenue fell
Sales fell 11% to 223,600 tonnes, partly because a 15,000-tonne shipment slipped from September to October due to congestion at Port Hedland. The average realised price also fell 14% to $1,809 a tonne, or $2,077 on a 6% lithium basis.
As a result, quarterly revenue fell 24% to A$563 million from A$743 million in the June quarter. PLS ended September with A$2.22 billion in cash and net cash of A$1.28 billion.
What comes next
After the quarter, PLS approved a A$1.9 billion investment in its P2000 expansion, which targets about 2 million tonnes a year of concentrate capacity. First output is expected in the September quarter of 2029. It also signed a 20-year power deal with Fortescue to cut costs and emissions.
PLS kept its full-year production guidance of 1.03 million to 1.10 million tonnes but raised its capital spending guidance to A$1.13 billion to A$1.195 billion.
Our read
Outlook: bearish. Record output from a major producer adds supply while lithium prices are already falling.
What to watch
- December-quarter sales, including the delayed 15,000-tonne shipment.
- Spodumene prices, which fell 14% in the September quarter.
- Progress on the P2000 expansion and the new Jimmagunya plant.
For information only, not investment advice.
Lithium price in India
metalscost.com India reference price as of 2026-11-01.
Detailed analysis
Timeline
- 2026-10-28: PLS reports record September-quarter spodumene production.
Supply Drivers
PLS's output rose 25% to a record after restarting the Ngungaju plant.
Mining Production
PLS approved an expansion to about 2 million tonnes a year of capacity, with first output in 2029.
What could lift prices
- Port congestion delayed some lithium shipments.
- Sales fell 11% even as output rose, so less concentrate reached buyers in the quarter.
What could weigh on prices
- A major producer is making record amounts of spodumene.
- PLS received 14% less for its concentrate than in the June quarter.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Australia | Medium | One of its largest lithium mines produced a record amount and is planning a major expansion. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Lithium Mining | Neutral | Record output and lower costs are offset by falling prices. |
Who gains, who loses
- Battery makers: More spodumene supply and lower prices reduce their raw material costs.
- PLS shareholders: Quarterly revenue fell 24% despite record output.
Other ways this could play out
- If lithium prices recover, record output would lift PLS's revenue quickly.
- If prices keep falling, higher-cost producers may cut output.
Price risks
- Lithium prices depend heavily on demand from Chinese battery makers.
- Port congestion could delay more shipments.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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