Highlights

  • PLS’ production rose 2% QoQ to 224.8kt in the September quarter.
  • Revenue for the period surged 30% QoQ to AUD 251 million.
  • Cash balance stood at AUD 852 million at quarter-end.

Shares of Pilbara Minerals Limited (ASX:PLS) jumped 5.24% to AUD 3.12 during morning trade on 24 October 2025, after the company reported operational and financial results for the September Quarter of FY26. The update highlighted improved pricing, lower operating costs, and continued optimisation across its Pilgangoora Operation in Western Australia.

Operational Stability and Improved Recoveries

PLS produced 224.8 thousand tonnes (kt) of spodumene concentrate during the September quarter, representing a 2% increase from the previous quarter’s 221.3kt. The company said the consistent output reflected stable operations at its Pilgan Plant, following the successful completion of the P1000 expansion in FY25.

Lithium recoveries improved significantly to 78.2%, up from 71.6% in the prior quarter, driven by ongoing plant optimisation and ore-sorting initiatives. Total material mined increased to 7.7 million tonnes, with ore mined rising to 1.7Mt from 1.5Mt in the June quarter, supported by the transition to an owner-operator mining model.

Revenue Growth Supported by Higher Realised Prices

Sales volumes for the quarter were 214.0kt, with an average realised price of US$742 per tonne (CIF China) on an SC5.3 basis. On a SC6 equivalent basis, the realised price increased by 20% to US$841 per tonne. The higher realised prices drove a 30% increase in quarterly revenue to AUD 251 million, compared to AUD 193 million in the June quarter.

The company noted that operational efficiencies and stable production levels helped sustain sales performance despite modest volume variation.

Cost Optimisation Delivers Margin Improvement

PLS achieved meaningful cost improvements during the quarter. Unit operating costs (FOB) fell 13% to AUD 540/t (US$353/t), while CIF costs declined 11% to AUD 645/t (US$422/t). The company attributed the improvement to cost-reduction initiatives and efficiency gains realised following the P1000 expansion.

Management indicated that while some upward cost pressures may emerge due to the seasonal wet period, FY26 cost guidance remains unchanged.

Balance Sheet and Capital Investment

PLS ended the quarter with a cash balance of AUD 852 million, down from AUD 974 million at the end of June. The reduction was mainly due to AUD 78 million in capital expenditure and timing effects on customer receipts worth around AUD 50 million, expected early in the December quarter. The company continues to maintain a liquidity position, with an undrawn credit facility of AUD 625 million.

Growth and Downstream Integration

During the period, PLS continued progressing its P2000 expansion feasibility study, targeting a potential increase in production capacity beyond 2Mtpa by FY27. The company also advanced its downstream partnerships, including the POSCO Pilbara Lithium Solution joint venture in South Korea, which produced and sold lithium hydroxide under moderated output conditions.

In addition, studies with Ganfeng Lithium for a new downstream conversion facility advanced to detailed site assessment and selection.

Outlook

Pilbara Minerals reaffirmed its commitment to disciplined growth and operational optimisation. The company said its cost control measures and project pipeline position it well to capitalise on future improvements in the lithium market.