Pilbara Minerals (ASX:PLS) has issued guidance indicating increased production and reduced costs for the fiscal year 2026, capitalising on recent plant expansions while maintaining strict capital management. The lithium miner anticipates a production volume of 820,000 to 870,000 tonnes of spodumene concentrate, marking an increase from the 754,600 tonnes produced in FY25. Unit operating costs are projected to decrease to between $560 and $600 per tonne, a reduction from the $627 per tonne recorded in the previous year. Pilbara Minerals is an Australian lithium mining company focused on the exploration and development of its Pilgangoora Project. The company extracts lithium-rich spodumene concentrate, a key raw material in batteries.
Total capital expenditure is expected to decline to a range of $300 million to $330 million. This includes $45 million to $55 million in sustaining capital expenditure, $110 million to $120 million for mine development, and $145 million to $155 million allocated to project and infrastructure spending. This decrease in expenditure reflects the company’s commitment to capital discipline and efficient resource allocation.
In FY25, Pilbara Minerals successfully met or exceeded all of its guidance metrics. Production surpassed expectations, reaching 754,600 tonnes, while unit costs remained within the projected range at $627 per tonne. Capital expenditure was also effectively managed, falling at the lower end of the guidance at $569 million, demonstrating strong operational performance and cost control.
During the June quarter, Pilbara Minerals reported a 28 per cent increase in revenue, reaching $193 million. This growth was driven by a 72 per cent surge in sales volume to 216,000 tonnes, which effectively compensated for weaker pricing conditions. The company generated a $98 million cash margin from its operations and concluded the quarter with a robust cash balance of $1 billion.
