Sydney, January 30, 2026, 16:52 AEDT — Market closed.
- PLS fell 6.5% to A$4.29 at the close after its December-quarter update
- Revenue rose 49% from the prior quarter, but output dipped and costs climbed
- A Ganfeng unit filed that it sold 32.19 million shares in an on-market block trade
PLS Group shares ended down 6.5% at A$4.29 on Friday, giving back early gains after the lithium producer flagged higher unit costs and a possible restart of an idled processing plant at its Pilgangoora operations.
The swing matters because lithium names have been trading off a fragile price recovery, and any sign that producers are bringing mothballed capacity back can quickly spook the market. Traders are also looking for proof that higher realised prices are turning into steady cash, not just one-quarter noise.
PLS, formerly Pilbara Minerals, is one of Australia’s biggest producers of spodumene concentrate — mined lithium feedstock used to make battery chemicals. That gives its quarterly numbers outsized weight in a sector still trying to work out whether the downcycle is ending or just pausing.
In its December-quarter report, PLS said production fell 7% from the prior quarter to 208,000 tonnes, while sales rose 8% to 232,000 tonnes. Average estimated realised pricing climbed to US$1,161 a tonne (delivered into China), lifting revenue 49% to A$373 million, while unit operating costs (FOB, or excluding freight and royalties) rose 8% to A$585 a tonne; cash margin from operations was A$166 million and cash at quarter-end stood at A$954 million.
Separately, an ASX filing showed GFL International Co., a unit of China’s Ganfeng Lithium, sold 32.19 million PLS shares in an on-market block trade at A$5 a share and ceased to be a substantial holder.
The stock had looked headed the other way earlier. Shares were up about 4% in morning trade, and managing director Dale Henderson struck an upbeat tone on demand, telling local media: “The near term outlook is looking very positive but we’ll see how we’ll go.” Stockhead
Brokers have been shifting their stance as lithium prices improve. MT Newswires reported this week that Barrenjoey Markets upgraded PLS to “overweight” from “neutral” and set a A$5.50 price target. MarketScreener
Still, there is a clean downside case. If spodumene prices fade again, higher operating costs and any decision to restart capacity could land badly, especially if other producers also move to lift output at the same time. The early rally-and-reversal on Friday is a reminder that this trade is still skittish.
Next up, investors are watching for the board’s call on whether to restart the roughly 200,000-tonne-a-year Ngungaju plant, which PLS said could be brought back within about four months if approved, with a decision expected in the coming quarter.
