Sydney, Feb 1, 2026, 16:54 AEDT — Market closed
- PLS closed Friday down 6.5%, pushing its losses over the past five days to roughly 16%
- Revenue for the December quarter climbed to A$373 million, boosted by higher realised lithium prices
- The board is set to consider restarting the Ngungaju plant during the March quarter
PLS Group shares ended Friday at A$4.29, slipping 6.5%, following the lithium producer’s announcement of an accelerated timeline for additional supply. Investors worked through a sizable update, pushing the stock down roughly 16% in the last five sessions. (MarketScreener)
Timing is crucial as lithium prices have bounced back, and PLS sits on idle capacity it can quickly reactivate without lengthy ramp-up. Bringing that supply back online would inject more volume into a market still grappling with whether the rally is genuine or merely another squeeze.
PLS reported A$373 million in revenue for the December quarter, a 49% jump from the previous three months, driven by sales of 232,000 tonnes of spodumene concentrate—lithium ore used in battery production. The company said the average realised price climbed 57% to $1,161 per tonne on a roughly 5.2% lithium-oxide grade basis, also providing figures on a 6% standardised basis (“SC6”). Operating costs increased 8% to A$585 per tonne on an FOB (free-on-board) basis. Cash reserves grew to A$954 million. (PLS)
The company is evaluating a restart of its Ngungaju plant, which could boost capacity by roughly 200,000 tonnes annually. It has already finished preliminary preparations that would allow a restart within about four months once a decision is made. The board is set to review this decision during the March quarter, along with progress reports on the P2000 expansion study and the Colina project in Brazil, the company said. (PLS)
A separate filing revealed GFL International Co., Limited offloaded 32.19 million PLS shares in an on-market block trade on Jan. 27, fetching A$5.00 each, and dropped below the substantial holder threshold. (Company Announcements)
PLS CEO Dale Henderson said on a conference call that the company is “not calling an end to volatility.” He described Ngungaju economics at current prices as delivering “very, very strong margins,” but warned that forecasting becomes tougher the further out you look. The same report highlighted that other Australian producers, such as Mineral Resources, are considering expansions and restarts as spodumene prices have more than tripled since early December. (The Northern Miner)
Jefferies analysts flagged that a Ngungaju restart is “increasingly probable,” though it hinges on locking in offtake at adequate prices. They also cautioned that idled capacity coming back online in China could weigh on the market soon. (Mining Weekly)
Friday’s drop boils down to something simpler: much of the news was already priced in, and given the stock’s volatility, traders didn’t hesitate to hit bids once fresh supply rumors surfaced.
The road ahead isn’t straightforward. Should lithium prices slide again or new supply return quicker than demand, PLS might hesitate on Ngungaju. That would keep the market focused on cost pressures, especially during the wet season.
Trading picks up Monday, and all eyes will be on lithium prices and whether last week’s block sale pressure persists. PLS’s interim report lands on Feb. 19, while the Ngungaju ruling and other project news are set for the March quarter. (Market Index)
