PLS considers plant restart, logs 73% rise in Q2 revenue as lithium sales improve
Australian lithium producer PLS Group signalled a possible restart of a plant under care and maintenance on Friday after posting a surge in December-quarter revenue, as improving demand helped buoy prices of the battery material.
The pure-play lithium miner, formerly Pilbara Minerals, posted second-quarter revenue of A$373-million ($262.89-million), up from A$216-million a year earlier. PLS received prices of $1 161 a tonne, up 50% from the September quarter.
The company said it is may restart its Ngungaju plant in Western Australia, with additional production capacity within four months given a strong inbound interest for offtake volumes. PLS expects to make a decision in the next quarter.
"We see the option for a restart of Ngungaju as increasingly probable in the current market environment, contingent on security of offtake at sufficient pricing," said Jefferies analysts in a note, adding that a restart of China's idled capacity could overhang the market in the near term.
A boom in battery storage has bolstered the demand outlook for lithium this year, driving hopes for an accelerated turnaround for lithium producers. The industry has been struggling with an oversupply driven slump in prices since late 2022.
It produced 208 000 metric tonnes of lithium raw material spodumene concentrate in the three months ended December 31, higher than the 188 200 dry metric tonnes recorded in the same period last year, but below visible alpha consensus of 212 000 metric tonnes.
The firm posted an 8% sequential jump in unit operating costs on a free-on-board (FOB) basis to A$585/t.
PLS said that while it expects cost pressures to continue through the remainder of the year due to the wet season, full-year FOB unit operating cost remains on track to be within the guided range.
The company kept its full-year forecast unchanged for metrics across the board.
Shares of the company rose as much as 2.6% in early trade, snapping three session of losses.
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