Australia's PLS Group rises on supply deal with China's Canmax

Pls

10/02/2026 02:52

Updates

** Shares of PLS Group PLS.AX up 1.9% to A$4.25, set for their strongest session since February 2 if gains hold

** Stock among top gainers on the mining sub-index .AXMM, which is up 0.8%

** Lithium miner signs an offtake deal to supply 150,000 tons of spodumene concentrate to Chinese lithium battery materials maker Canmax Technologies 300390.SZ

** Jefferies says the $1,000 per ton floor price under deal, without escalating price limits, provides PLS with upside leverage, while delivering downside protection

** Brokerage notes offtake execution had previously been called out to be the key requirement for the "marginally accretive" restart of the mothballed Ngungaju plant

** Flags however that should the deal engender the re-start of Ngungaju, increased supply will likely place downward pressure on prices, given the return of involuntarily idled
Chinese capacity is already a near-term overhang

** Stock up 1.7% in January after rising 92.7% in 2025

 (Reporting by  Shruti Agarwal and Sherin Sunny in Bengaluru)

 ((Sherin.Sunny@thomsonreuters.com))