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Pilbara Minerals Ltd (ASX:PLS) has placed its Ngungaju plant in Western Australia on care and maintenance (C&M), with this pushing production guidance for the 2025 fiscal year from a range of 800 to 840 kilotonnes to one of 700 to 740 kilotonnes.
The decision was influenced by Pilbara’s consideration of “lithium market conditions,” which prompted a focus on its Pilgangoora Operation, and optimisation of the Pilgan plant, which costs less and is higher performing.
Placing Ngungaju into C&M was therefore expected to keep costs down, with PLS amending its capital expenditure guidance from a range of $615 million to 685 million to $565 to 610 million for FY25 after the mothball move.
Unit operating costs were also revised down, from $650 to 700 per tonne to $620 to 640 per tonne for the same period.
Pilbara said that in the September quarter, the amount of ore mined had fallen to 1,388, 688 wet metric tonnes (wmt), from a figure of 1,841,748 wmt in the June quarter. Ore processed was also lower: 1,046,328 wmt in the September quarter compared to 1,127,924 wmt in the June quarter.
The amount of spodumene concentrate produced was at 220,120 dmt, down from 226,169 dmt compared to the June quarter. The amount of this material shipped was down from 235,762 dmt in the June quarter to 214,513 dmt in the September quarter.
PLS traded stronger after the news, and at 13:00 AEDT, shares were trading at $2.97 – a rise of 4.04% since the market opened.
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