ASX-listed PLS, formerly Pilbara Minerals, said on Thursday it had concluded a multi-year investment phase and that it was shifting focus to operational optimisation, positioning the company to better navigate the current volatility in the lithium market.

“With the completion of P1000 project, PLS concluded a multi-year investment cycle. We are now ideally positioned: lower costs, partnered with the leading battery chemicals companies, strategically diversified and backed by a strong balance sheet,” said MD and CEO Dale Henderson.

PLS maintained a strong balance sheet, closing the March quarter with A$1.1-billion in cash, down A$109-million owing to capital expenditure (capex). 

The company’s revenue fell 30% quarter-on-quarter to A$150-million, reflecting lower sales volumes. Unit operating costs climbed to A$685/t (FOB), impacted by lower production availability as the company integrated the P1000 project.

Spodumene concentrate production fell to 125 000 t, down from 188 200 t in the prior quarter. The decline was attributed to planned downtime for the P1000 project commissioning, the Ngungaju plant being on care and maintenance under the P850 operating model, and a six-day disruption caused by Cyclone Zelia. 

Sales volumes stood at 125 500 t, while average realised prices edged 7% higher to $747/t (CIF China, ~SC5.3 basis).

The P1000 project, which aims to expand the Pilgangoora operation’s capacity, achieved first ore on January 31, with all performance test criteria met by February. Pilbara Minerals expects plant optimisation efforts to be completed in the June quarter, supporting higher production volumes and lower costs into the 2026 financial year..

The company emphasised that a culture of optimisation and continuous improvement was deeply embedded across the organisation. Over the past 18 months, PLS has undertaken a number of steps to strengthen its position, including suspending dividend payments since September 2023, reducing planned capex in February 2024, implementing a workforce reduction in March 2024, and transitioning to the P850 operating model in September 2024. These initiatives have delivered reductions in both operating costs and capex.

Looking ahead, PLS is focused on further optimisation of the P850 operating model. A dedicated internal team is working on a pipeline of continuous improvement and cost reduction initiatives, with further savings expected across the 2026 and 2027 financial years.

The feasibility study for the P2000 expansion - an initiative to more than double production capacity beyond 2-million tonnes a year - is expected in the 2027 financial year. However, the company noted that no near-term investment decision was likely, given current market conditions.