Production Surges 77% Following Plant Expansion
Pilbara Minerals Limited (ASX:PLS) delivered production of 221.3 thousand tonnes during the June 2025 quarter. The Company achieved a 77% increase compared to the previous quarter’s 125.0 thousand tonnes. The Pilgan Plant’s optimised operations following the P1000 expansion completion drove this significant growth.
Sales volume reached 216.0 thousand tonnes, marking a 72% quarterly increase. The Company shipped spodumene concentrate with an average grade of approximately 5.1% lithium oxide. Sales of tantalite concentrate totalled 60,908 pounds during the reporting period.
Pilbara’s Australian Operations
Revenue Climbs Despite Lower Pricing Environment
Revenue increased 28% to $193 million for the June quarter. Higher sales volumes partially offset the impact of declining lithium prices. The Company achieved an estimated average realised price of US$599 per tonne for spodumene concentrate on a CIF China basis.
This represented a 20% decrease from the previous quarter’s US$747 per tonne. On a standard SC6.0 equivalent basis, the average estimated sales price equated to US$703 per tonne.
Operating Costs Decline with Increased Production
Unit operating costs on a FOB basis decreased 10% to $619 per tonne or US$397 per tonne. The reduction reflects benefits from increased production and cost efficiencies following P1000 project completion. Total operating cash costs in absolute dollars increased due to higher mining and production volumes.
Operating cash costs showed a 23% reduction compared to the same period in FY24. The P850 operating model and ongoing cost-saving initiatives continue delivering measurable efficiencies across operations.
Pilbara’s unit operating costs decline with increased production
Strong Balance Sheet Position Maintained
The Company maintained its cash balance at approximately $1.0 billion as at 30 June 2025. Cash decreased by $88 million during the quarter primarily due to capital expenditure for infrastructure and P1000 project completion.
Cash margin from operations reached $98 million, supported by higher sales volume and favourable cash timing. The margin after capitalised mine development costs and sustaining capital expenditure was $63 million.
FY25 Guidance Targets Achieved
Pilbara Minerals (ASX:PLS) achieved or exceeded all FY25 operational and financial metrics against guidance. Production of 754.6 thousand tonnes exceeded the 700-740 thousand tonne guidance range. Unit operating costs of $627 per tonne fell within the $620-640 per tonne guided range.
Capital expenditure of $569 million on an accrual basis landed near the bottom of the $565-610 million guidance range. The Company delivered these results despite challenging market conditions throughout the financial year.
Pilbara Minerals’ Pilgangoora lithium-tantalum operation in WA
FY26 Outlook Shows Continued Growth
The Company issued FY26 guidance targeting production of 820-870 thousand tonnes of spodumene concentrate. Unit operating costs are expected to decline further to $560-600 per tonne on a FOB basis. Total capital expenditure guidance ranges from $300-330 million.
The FY26 strategy centres on reducing unit operating costs through full-year operation of expanded processing capability. Progressive increases in contact ore feed to the processing plant will enable lower mining costs and reduced reliance on clean ore.
Also Read: European Lithium Reports Strong Quarter with $12.8M in Share Sales and Major Project Advances
Joint Venture Activities Progress
The POSCO Pilbara Lithium Solution facility in South Korea produced 3,037 tonnes of lithium hydroxide during the quarter. Train 1 sold 3,070 tonnes to certified customers for electric vehicle applications. Three customers now hold certification for purchasing battery-grade material from the facility.
Train 2 produced 1,328 tonnes of uncertified lithium hydroxide with 100% of output meeting battery-grade quality standards in the final two months. Customer certification processes continued for Train 2 throughout the reporting period.
Resource Base Strengthened
The Company reported a 23% increase in contained lithium following its 2025 Mineral Resource update. The Pilgangoora Operation now contains 5.7 million tonnes of lithium oxide across 446 million tonnes at 1.28% lithium oxide grade.
This reinforces the operation’s position as one of the largest hard rock lithium operations globally under 100% ownership.
