Despite its lithium operations being impacted by tropical cyclones earlier this year, Pilbara Minerals (PLS) has maintained a strong balance sheet position for the March 2025 quarter.
The lithium miner ended the March quarter with $1.1 billion in cash balance. While the amount is $109 million less than the previous quarter, PLS has finalised its investment phase and is now focused on project optimisation.
This includes the ramp-up of the P1000 expansion project in Western Australia and the Pilgan plant optimisation, the latter of which is expected to be completed in the June 2025 quarter.
The Pilgan plant, also in WA, is intended to support higher production volume and lower unit costs throughout the June quarter and the 2025–26 financial year (FY26).
The Pilgangoora operation, comprising two large-scale processing plants, will provide PLS with operational flexibility to quickly grow or moderate production volumes.
The optimisation comes as the Australian lithium sector is weathering cyclically low lithium prices primarily triggered by a supply surplus caused by increased cheaper lithium from countries like Indonesia and China, which have less stringent environmental, social and governance (ESG) standards. A decrease in global electric vehicle (EV) sales also played a part in the decline, despite EV demand rising.
“The primary focus of the March quarter was the commissioning and ramp up of the P1000 project which expanded processing capacity at the Pilgangoora plant,” PLS said.
“Adjusting for the impact of six lost days of production due to Cyclone Zelia, the ramp up proceeded to plan … The remaining P1000 project scope relates to minor earthwork and decommissioning of obsolete processing plant and equipment.”
PLS produced 125,000 tonnes of spodumene concentrate for the March quarter, a 34 per cent decrease from the previous quarter.
The company cited the Ngungaju plant being in care and maintenance under the P850 operating model, planned downtime for the P1000 project commissioning activities and impacts of Tropical Cyclone Zelia as the reasons behind the decline.
“Total material mined (TMM) was 5.6 million tonnes (Mt) compared to 6.9Mt in the prior quarter, with the reduction in line with the P850 operating model,” PLS said.
“Total ore mined of 1.1Mt was in line with the 1.2Mt mined in the prior quarter. (PLS) progressed its transition to an owner-operator mining model through the March quarter, with a number of new excavators and ancillary mining equipment commissioned, realising further improved operating efficiencies and cost improvements.
“Lithium recovery of 67.2 per cent in the March quarter was lower than the prior quarter as expected due to disruption from the P1000 project tie in and ramp up, however exceeded internal forecasts. Post P1000 project commissioning, the Pilgan plant operated to plan, delivering targeted recoveries during steady state periods.”
With its Latin Resources acquisition completed earlier this year, PLS will complete an exploration program at the Colina project in Brazil to infill and expand the existing mineral resource and inform study optimisation, which is targeting a June 2026 quarter completion.
“(PLS) has maintained a consistent and disciplined strategy to navigate ongoing market volatility in the lithium sector, while retaining the flexibility to capitalise on emerging opportunities,” PLS said.
“Looking forward, (PLS) is focused on optimisation of the P850 operating model and a dedicated internal team has been tasked with identifying and executing a pipeline of continuous improvement and cost reduction initiatives, expected to drive further savings across FY26 and FY27.
“Alongside these actions, (PLS) has maintained its focus on the successful delivery of the P1000 project – on schedule and on budget – which will be a key driver of additional cost reductions through the June 2025 quarter and into FY26 as optimisation of the Pilgan plant continues.”
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