Pilbara Minerals (PLS) has marked a softer March quarter as the company felt the impact of Tropical Cyclone Zelia and navigated several planned operational adjustments.
Quarter-on-quarter production retreated 34 per cent to 125,000 tonnes, with sales decreasing by 39 per cent. It comes after the Ngungaju plant was placed in care and maintenance in December 2024, while PLS underwent the commissioning and ramp up of the P1000 project.
The company also lost six days of production due to Cyclone Zelia.
PLS continues to prioritise growth initiatives despite the subdued lithium pricing environment, with an expanded Pilgan plant set to unlock higher production volumes and lower unit costs during the 2025–26 financial year as the company targets one million tonnes per annum of spodumene production.
PLS said it has maintained a “consistent and disciplined” strategy to navigate ongoing market volatility.
“This strategy has been pursued over a multi-year horizon and has involved carefully timing production capacity growth in line with market demand, while simultaneously enhancing the business’ competitiveness through targeted investment, continuous improvement initiatives and further maturing the balance sheet,” PLS said.
“As a result of this focused approach, the group is in a strong position – underpinned by a robust balance sheet, diversified strategic supply relationships with Tier 1 global chemical partners, and an enhanced operating platform that will continue to deliver cost efficiencies as processing optimisation progresses.”
PLS has implemented a series of preservation measures, including declaring no dividend payments since September 2023, implementing a workforce reduction in March 2024, and transitioning to its P850 operating model in September 2024, delivering further cost reductions.
“Looking forward, the group 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,” the company said.
“The Pilgangoora operation, comprising two large-scale processing plants, provides a high degree of operational flexibility to quickly grow or moderate production volumes dependent upon market conditions.
“In combination with this operational agility, the group’s strong balance sheet represents a key strategic advantage in the current market environment. The lithium sector remains high-growth but inherently dynamic.”
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