Lithium miner PLS Group bullish on price outlook, eyes expansion
Australia’s biggest lithium producer PLS Group flagged a supply shortfall of the battery metal in the coming years and said it was nearing a final investment decision on expanding its capacity, as it released full-year results.
The miner, which supplies spodumene, a hard rock type of lithium, will release a study into the expansion of its Pilgangoora project in Western Australia, dubbed P2000, in the quarter ending December, CEO Dale Henderson said in a Bloomberg TV interview. It’s aiming to make a final investment decision shortly after, he said.
“P2000 is the next leg of expansion for our Australian asset,” Henderson said. “It’s got the ability to double capacity” to two-million tons a year, he said.
PLS Group posted a net profit of A$526-million ($377-million) for the 12 months to June 30, reversing a loss the year before, as prices of the key battery metal recovered from a prolonged supply glut. The result fell short of the average analyst estimate, however.
Henderson was bullish on the outlook for lithium prices, which have recovered this year after a couple of years in the doldrums.
“I think it’s safe to say we’re in the next part of the cycle,” he said. “At this moment in time, it looks like we are in for what I think is a fantastic period, given the strong demand and languishing supply,” Henderson said.
PLS shares reversed an early decline to jump as much as 8.1% in Sydney and were still holding onto the bulk of those gains by early afternoon.
The miner has not ruled out dealmaking to boost its growth, but is prioritizing organic expansion, Henderson said.
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