PLS’s operational performance in 1QFY25 was solid, with production and sales largely in line with our forecasts. Realised pricing was down QoQ, in line with spot movements, however cost discipline was highlighted with the operational cash burn modest in the quarter. In light of market headwinds, PLS will place the Ngungaju plant in care and maintenance and operate under a P850 model. This has seen FY25 production guidance downgraded by 100kt but is offset by lower guided costs and a reduction in guided capex. We reiterate our BUY rating but lower our price target 3% to A$3.70. Movements in spodumene prices remain the key catalyst for PLS, which has growth optionality from P2000 and the Salinas project on a rebound in lithia pricing and sentiment.
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.