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Highlights:

  • Pilbara Minerals reports 77% QoQ increase in spodumene production to 221,300 tonnes
  • The company generated AUD 193 million revenue in Q4 FY25 despite lower pricing
  • Pilbara Minerals' FY26 production guidance set at up to 870,000 tonnes with lower capex

Shares of Pilbara Minerals Ltd (ASX:PLS) rose nearly 4% to AUD 1.74 in early trading on Wednesday after the lithium producer released its fourth quarter and full-year update for FY25. The report included a notable lift in production and sales volumes and reaffirmed the company’s annual guidance performance, despite ongoing pricing pressure in the lithium market.

For the quarter ended 30 June 2025, Pilbara Minerals produced 221,300 tonnes of spodumene concentrate, marking a 77% increase compared to the prior quarter. This increase was attributed to higher output from the Pilgan Plant following the completion of the P1000 expansion project earlier in the year. Sales volumes also advanced strongly, rising 72% quarter-on-quarter to 216,000 tonnes. This contributed to quarterly revenue of $193 million, an increase of 28% from the previous period, despite a 17% decline in the average realised spodumene price to AUD 599 per tonne (CIF China basis, ~SC5.1 grade).

The company’s operating performance improved with a 10% reduction in unit operating costs, which fell to AUD 619 per tonne. This decline was driven by the higher throughput at the Pilgan Plant and efficiencies gained from the P850 operating model. Pilbara Minerals achieved a cash margin from operations of AUD 98 million during the quarter, ending the period with a cash balance of AUD1 billion.

The company either met or exceeded its FY25 guidance across key metrics:

  • Production: 754,600 tonnes, above the 700,000–740,000 tonne guidance range
  • Operating Costs: AUD 627/tonne FOB, within the AUD 620–AUD 640/tonne range
  • Capital Expenditure: AUD 569 million, at the lower end of the AUD 565–AUD 610 million range

For the year ahead, Pilbara Minerals has issued production guidance of 820,000 to 870,000 tonnes, with unit operating costs expected to decrease to between AUD 560 and AUD 600 per tonne (FOB). Capital expenditure is forecasted to decline significantly to AUD 300 million–AUD 330 million. The company noted that spodumene production is expected to remain stable on a quarterly basis in FY26, supported by planned maintenance across the year. Pilbara Minerals also highlighted ongoing work under its "Cost Smart" program, which targets process improvement and cost efficiency across the business.