PLS’s earnings result was largely a non-event, with the company releasing guidance ranges for underlying Ebitda and reported profit on 10 February. Guidance ranges remain unchanged for the remainder of FY25, and we note that our forecasts are within the respective ranges. The progress of the downstream hydroxide refinery in Korea is encouraging, and with reduced capex in the 2HFY25, we expect PLS’s cash flow metrics to improve as the P1000 expansion is now complete and commencing ramp up. PLS indicated it will have some costs associated with the Latin Resources takeover in the 2HFY25 and this drives a modest reduction to our FY25 estimates. We reiterate our BUY rating and A$3.90 price target on PLS.
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