PLS boosts Pilgangoora's lithium mineral resource base by nearly a quarter amid supply glut
PLS, formerly known as Pilbara Minerals, has boosted the estimated lithium contained within Pilgangoora by 23 per cent to 446 million tonnes at 1.28 per cent lithium oxide (Li2O), which equates to 5.7 million tonnes of Li2O.
The mineral resource upgrade followed a 104,672-metre drilling program comprising 364 holes drilled within the past two financial years.
Shares in PLS spiked more than 10 per cent in early Wednesday trade, before paring back to a 3.5 per cent gain by 11.40am.
'The significant uplift in the mineral resources reaffirms our 100 per cent-owned Pilgangoora operation as one of the world's largest and highest-quality hard rock lithium assets,' PLS chief executive Dale Henderson said.
'This outcome is aligned with our strategy to optimise the operating base and unlock the full potential of this world-class asset, driving long-term value for our shareholders.'
PLS wants Pilgangoora to pump out more spodumene concentrate, despite a prolonged market recession.
Pilgangoora produces about 500,000 tonnes of the lithium product annually and is eyeing an increase to 850,000tpa — dubbed the P850 project. PLS has outlaid the capital required for P850.
The benchmark price of the spodumene concentrate all of WA's lithium miners export is currently languishing between $US605 per tonne and $US630/t, down about a quarter this year to date and more than 80 per cent from a 2022 peak.
All of the six lithium mines in Western Australia are believed to be losing money at current prices. A PLS spokesman on Friday indicated there are no plans to switch Pilgangoora off.
'The lithium market is moving through a phase of re-balancing. PLS is well positioned to navigate current conditions and capitalise on future recovery, underpinned by a multi-year strategy to scale the business, lower operating costs, and maintain a strong balance sheet,' the spokesman said.
'Combined with an embedded culture of continuous improvement to drive ongoing efficiency, this positions PLS strongly for the next phase of the cycle.'
Mineral Resources and Ganfeng's Mt Marion lithium mine appears to edge out Liontown Resources' Kathleen Valley as the least profitable lithium mine in the State.
But a MinRes spokesman told The West Australian on Thursday there were no near-term plans to put Mt Marion, or the company's other lithium mine Wodgina, into care and maintenance.
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News.com.au
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ASX Resources Quarterly Wrap: Lithium bounce could boost these junior explorers
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