Perth, June 22, 2026, 00:05 (AWST)
- PLS ended Friday at A$5.88, dropping 4.7% on the session and 9.8% for the week.
- The miner signed off on around A$175 million in pre-final investment decision spending for its P2000 expansion.
- Chinese lithium futures are still weak and Australian lithium shares keep pulling back. Both are limiting moves for now.
PLS Group Ltd closed down 4.7% at A$5.88 on Friday, bringing its five-day loss to 9.8% as investors looked at the company’s early spending on expanding Pilgangoora and the sharp drop across mining stocks. Trading volume reached 37.1 million shares. The stock hit a session low of A$5.77.
PLS is putting money in before the project has full sign-off and all the numbers are clear. Shares have jumped roughly 354% in the past year, making the stock more sensitive to shifts in lithium pricing, build costs, or any changes to the production timeline.
Pilbara Minerals’ P2000 project may lift annual spodumene concentrate output at its Pilgangoora site to roughly 2 million tonnes. PLS plans to wrap up the feasibility study and decide on a final investment decision in the December quarter of 2026. If the board greenlights construction, first ore could come in mid-2029. The company defines pre-FID spending as money committed before the final investment decision.
PLS will spend about A$100 million of the planned outlay on processing-plant engineering and equipment that have long lead times. Another A$60 million is set aside for site prep and operational work, which includes expanding accommodation by 200 beds. The company has also allocated A$15 million for upgrades to Wodgina Road East. The spending is aimed for the 2027 financial year.
Managing Director and CEO Dale Henderson said the plan “preserves optionality and maintains momentum along the critical path.” He called it “disciplined growth in action,” but noted that full approval is still tied to the study, funding, and the market. Resources Review
S&P/ASX 200 dropped 0.92% to 8,828.70 on Friday. Materials fell 4.03%. BHP shares slid 5.6% after the company flagged higher costs at its Jansen potash project, which hit mining stocks further.
Lithium stocks fell this week, with IGO down about 7.7%. Liontown dropped 9.2%. Both names tracked lower, which points to a pullback across the sector, not just in P2000.
The price of Chinese battery-grade lithium carbonate was 167,250 yuan a tonne as of June 18, falling 10.3% in a month but still up 176.7% from a year ago. That split shows why PLS is sticking to its current development plans but keeping the option open to pause the full rollout if the market drops off.
The early spend doesn’t solve the main risks. P2000 still hasn’t cleared final approval, engineering work isn’t finished, and cost estimates could shift with inflation, mine setbacks or project delays. If lithium prices drop for a long stretch, returns could fall or the board could wait on the FID.
ASX trading is set for Monday as usual. The focus is on whether PLS stays above Friday’s A$5.77 low and how brokers factor in updated spending forecasts. Moves in Chinese lithium prices are also on the radar. These short-term signals could weigh more on the stock this week than any talk of production three years out.
