Pilbara Minerals produced approximately 267,000 metric tons of lithium concentrate at Pilgangoora in the quarter, a record for the operation and a 25% increase from the previous quarter. FOB unit operating costs fell 12% to A$539 per ton, helped by higher output, improved operating efficiency, favorable weather and greater capitalization of stripping expenditures.
The production increase came mainly from stronger performance at the Pilgan beneficiation plant and the restart of Ngungaju. Pilgan processed higher-quality ore, improved pre-concentration performance and maintained stable operations, while overall lithium recovery at Pilgangoora was approximately 75%. Ngungaju resumed production in July and completed its ramp-up in October, with output expected to rise over the following three quarters.
Lower lithium prices reduced quarterly revenue. The company nevertheless indicated that margins remained healthy at prevailing prices and said it had no near-term plan to reduce Ngungaju production. Some offtake contracts also provide price protection, supporting continued production while market prices remain volatile.
PLS retained its FY27 production guidance, while warning that quarterly output could vary with ore characteristics, maintenance and weather. The company expects the rainy season and diesel-price changes to add cost pressure, and said the benefit from capitalized stripping would be smaller than in the first quarter. Further detail on reserves, strip ratios and the split between operating costs and capital expenditure is expected with the December-quarter results.
The company has approved the P2000 expansion, which is intended to increase Pilgangoora’s supply capacity after 2029. The project also includes road upgrades, a new camp and mine-service facilities aimed at improving transport, mining arrangements and equipment maintenance.