PLS Group approves $175M pre-FID capital expenditure for P2000 expansion

• Pre-FID capital expenditure for P2000 approved
• Potential to represent the next major phase of growth at Pilgangoora
• Allows company to expedite major lithium expansion project

Australia lithium mining powerhouse PLS Group (ASX:PLS) has given the green-light to invest into the next stage of the large P2000 project at its 100% owned Pilgangoora operation in Western Australia.

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The go-ahead from PLS (formerly Pilbara Minerals) for the P2000 project’s pre-final investment decision (pre-FID) capital expenditure will allow the company expedite the expansion project.

MD and CEO, Dale Henderson, said the disciplined pre-FID capital expenditure reflects PLS’ confidence in the long-term demand outlook for lithium and the company’s strategy to deploy capital where it generates compelling long-term shareholder value.

“P2000 has the potential to represent the next major phase of growth at Pilgangoora and further strengthen PLS’ position as one of the world’s leading lithium producers,” he said.

“This pre-FID capital expenditure preserves optionality and maintains momentum along the critical path. By progressing long-lead procurement, engineering and early works now, we are positioning PLS to respond to future lithium demand while retaining optionality for the timing of any final investment decision.

“We are commencing pre-FID activities from a position of operational strength, robust cash generation and a balance sheet that continues to build. Importantly, any final investment decision for P2000 will only be taken where study outcomes, funding capacity and market conditions support.

“This is disciplined growth in action – investing early to create long-term value, while preserving flexibility in how and when we deploy major capital.”

The P2000 feasibility study, representing the potential expansion of the Pilgangoora operation’s concentrate production capacity to approximately 2.0 million tonnes per annum (Mtpa), continues to progress with outcomes expected to be released in the December Quarter 2026.

“The final investment decision (FID) for P2000 will remain subject to positive study outcomes, funding capacity and market conditions,” Mr Henderson said.

The approximately $175 million pre-FID capital expenditure helps position PLS to deliver a FID in December Quarter 2026, which, if sanctioned by the PLS Board, is expected to target first ore in mid 2029.

“By preserving schedule optionality for P2000, PLS is positioning the project to respond to long-term lithium demand and potential supply-side constraints, while maintaining discipline around the timing of any formal FID.”

The pre-FID capital expenditure will be made across three distinct work streams in financial year 2027 (FY27), each addressing a specific barrier to execution:

• Processing plant procurement and engineering (approximately $100 million)

On-site early works and operational preparation (approximately $60 million)

• Wodgina Road East infrastructure and seasonal window execution (approximately $15 million).

FY27 mining activity remains weighted towards a capitalised cutback (mine development), requiring around 50% more material movement than FY26.

“Sequencing site preparation and mine development activities together supports efficient deployment of capital, reduces development risk and preserves schedule flexibility for P2000,” Mr Henderson said.

PLS is steady at $6.21. Mkt cap $19.87B.

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