PLS Group Shares Rise as It Approves P2000 Lithium Expansion Final Investment Decision

3-line summary

• Australian lithium producer PLS Group (ASX: PLS) approved a final investment decision for the P2000 project at its Pilgangoora operation in Western Australia, centered on building a new Jimmagunya processing plant, aiming to nearly double spodumene concentrate production capacity to about 2 million tonnes a year by 2029 (first production targeted for the September-quarter 2029).
• P2000 capital expenditure is estimated at A$1.9 billion (the headline figure of '$1.3 billion' reported elsewhere differs from this body figure and could not be reconciled from the article), excluding a separately approved infrastructure investment of up to A$650 million; combined P2000-and-infrastructure spending for FY27-FY29 is projected at A$2.55 billion, peaking at A$1.3 billion in FY28, with FY27 capex guidance raised to A$1.11-1.175 billion. Funding will come from existing cash and operating cash flow, with debt financing to be considered if needed.
• Key assumptions include a long-term spodumene concentrate price of $1,620/tonne, average annual production of about 1.97 million tonnes over the first ten years at full ramp, and average operating costs of about A$620/tonne; capital costs are 46% higher than the 2024 pre-feasibility study after inflation adjustment, reflecting mine-plan and processing-design changes. PLS shares rose 3.03% to A$3.06 Friday, outperforming the ASX 200's roughly 1% gain.

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