PLS reports record spodumene output as prices and shipment timing weigh on revenue

Story details

PLS Group reported on 28 October record September-quarter production of 267,600 tonnes of spodumene concentrate at Pilgangoora in Western Australia. Output increased 25% from 214,300 tonnes in the preceding quarter. Sales moved in the opposite direction, falling 11% to 223,600 tonnes, with the company pointing to shipment timing.

Revenue was A$563 million, compared with A$743 million in the June quarter. The estimated realised price was US$1,809 per tonne on a CIF China basis at approximately SC5.2 concentrate specification. The company also reported an SC6-equivalent price of US$2,077 per tonne. Those two prices use different concentrate specifications and should not be treated as separate sales benchmarks for identical material.

FOB unit operating costs declined to A$539 per tonne from A$616. PLS attributed the improvement to operational efficiencies and a greater volume of capitalised waste. Its reported cash margin from operations was A$392 million, while quarter-end cash was A$2.217 billion and net cash A$1.277 billion. Cash holdings and net cash are different balance-sheet measures.

The operational figures concern the three months ended 30 September, with later project developments identified separately in the release. PLS said the Ngungaju restart had returned the plant to full operational status by late October. Record concentrate output strengthens the operating base, but the lower quarterly revenue demonstrates that production, shipments, pricing and cash generation do not necessarily move together.