PLS Group makes positive FID for next stage at Pilgangoora lithium project

• 2.0Mtpa production capacity, with average annual production of approximately 1,970kt
• Strong project economics, delivering incremental post-tax NPV of $2.7B
• Lower-cost production profile with average unit operating costs
• 23% increase in Pilgangoora ore reserve tonnes to 249.2 million tonnes

PLS Group (ASX: PLS) has given the green light to proceed with the P2000 project at its Pilgangoora lithium operation in Western Australia.

The P2000 project will increase Pilgangoora spodumene concentrate production to approximately 2.0 million tonnes per annum (Mtpa) through construction of a new Jimmagunya processing plant, while improving the operation’s long term unit cost position, with first production expected in the September Quarter calendar year 2029.

The positive final investment decision (FID) comes at the same time as PLS has released a substantial increase in the ore reserve and an updated mineral resource for the Pilgangoora operation.

The upgrade also follows the release of government data which forecasts spodumene prices to average around US$2,410 a tonne in 2026 while Australia’s lithium export earnings are tipped to increase from nearly $10 billion in 2025–26 to over $17 billion in 2026–27 driven by higher price.

MD and CEO, Dale Henderson, said the completed P2000 feasibility study has materially enhanced the development concept established in the June 2024 pre-feasibility study (PFS).

He pointed to improved metallurgical understanding and processing capability through the company’s P680 and P1000 expansions enabling a more efficient approach to mining and processing the Pilgangoora orebody.

“P2000 will transform the scale and competitive position of PLS. It provides a pathway to around two million tonnes per annum of production, further extending PLS’ position as one of the world’s major lithium producers,” Mr Henderson said.

“The investment is expected to create significant long-term value for PLS shareholders, with an incremental post-tax NPV of $2.7 billion and IRR of 29.5% based on current long-term consensus lithium price expectations.

“With Pilgangoora 100% owned by PLS, this materially larger production base provides shareholders with substantial exposure to the additional value created in stronger lithium price environments.”

Mr Henderson told shareholders than in a cyclical market, scale matters, but cost position matters more.

“P2000 delivers both, with materially greater production at lower long-term unit costs, strengthening Pilgangoora’s position on the global cost curve and creating a more resilient business through lithium market cycles.

“This next phase of growth builds on years of operating experience at Pilgangoora, our deepening knowledge of the orebody and advances in processing technology. The P2000 configuration is the next evolution, applying this experience to recover more of the orebody, reduce waste movement and lower the mine strip ratio.”

Mr Henderson said P2000 FS supports investment of approximately $1.9 billion in P2000 and delivers an incremental post-tax NPV of $2.7B3 and post-tax IRR of 29.5%, based on a long-term SC6 price assumption of US$1,620 per tonne.

The release of today’s updated ore reserve further strengthens the long-term production base for Pilgangoora and supports the increased processing rates under the P2000 expansion.

The mineral resource has also been updated following a revised assessment of reasonable prospects for eventual economic extraction including open pit and underground components, with the underlying geological model and estimation unchanged.

PLS was steady at $2.96 with a Mkt cap of $9.577B prior to markets opening.

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