Australia's Pilbara Minerals beats estimates, extends lithium plant study (updated)

Pls

24/10/2025 05:50

Recasts, adds CEO comments, details in paragraphs 1-10

MELBOURNE Oct 24 (Reuters) -
Australia's Pilbara Minerals PLS.AX beat analysts' estimates on Friday, supported by cost reductions, and extended studies for a new chemicals plant as government support for critical minerals projects grows.

Shares of the Australian lithium miner climbed as much as 10% following the production report.

Pilbara reported a 2.1% rise in first-quarter spodumene concentrate and an 11% drop in costs, supported by stable output and improved recoveries at its Pilgangoora operations in Western Australia.

"Overall, (it was) a strong, clean first quarter of FY26, surpassing RBC on realised pricing, costs, and recoveries," RBC said.

The company has also extended a study on the location for a joint-venture lithium chemicals plant with customer Ganfeng Lithium 002460.SZ, which has already evaluated more than 1,000 sites.

The study, which was due to be completed in December, has been pushed back to December 2027 to see what kind of opportunities will unfold, prior to making a final investment decision, said Pilbara CEO Dale Henderson.

"This landscape continues to shift. Various forms of government support are emerging, and that could well shift the preferences in time, depending what transpires," he told Reuters.

Australia and the United States signed a critical minerals agreement on Monday aimed at countering China. Henderson called the deal "very positive" for an industry that has been in a prolonged downtrend, unlikely to recover for several more years due to slower-than-expected electric vehicle sales.

"This is what the lithium industry needs. It's a young industry growing from a very small base. Ultimately, the globe needs to build up further supply chains to service the world." he added.

Pilbara will not pursue any specific U.S. funding opportunities but is engaging more broadly, as it still has future production to sell, he added.

The pure-play lithium miner produced 224,800 metric tons of spodumene concentrate, used to make lithium, in the three-month period ended September 30, higher than the 220,100 tons in the year-ago period.

The firm said unit operating costs fell 10.9% to A$540 per ton, reflecting ongoing operational efficiencies and cost reductions.

It flagged cost pressures for the rest of the year from seasonal wet-season challenges.

Pilbara Minerals reported quarterly revenue of A$251 million ($163.10 million), up from A$210 million a year earlier.

   ($1 = 1.5389 Australian dollars)

 (Reporting by Shivangi Lahiri in Bengaluru; Editing by Maju Samuel and Sherry Jacob-Phillips)

 ((shivangi.lahiri@thomsonreuters.com))