Lithium miner Pilbara Minerals exceeded its full-year production guidance and trimmed costs in the June quarter, capitalising on the successful ramp-up of its Pilgan plant expansion – even as lithium prices remained under pressure.

The Australian miner produced 221 300 t of spodumene concentrate in the three months to June 30, a 77% jump from the prior quarter, following completion of its P1000 expansion project.

The company sold 216 000 t, up 72%, though weaker pricing weighed on revenue. Pilbara reported a 17% drop in realised prices on a 6.0% lithium oxide basis, to $703/t, but revenue still rose 28% to A$193-million, driven by the volume gains.

Production of 754 600 t for the full year exceeded the top-end of the company's 700 000 t to 740 000 t guidance, driven by a strong June quarter performance.

Unit costs also dropped, helped by the P1000 ramp-up and the rollout of the company’s leaner P850 operating model. The free-on-board unit operating cost fell 10% to A$619/t, or $397/t, while CIF costs declined 9% to A$721/t.

Pilbara’s cash margin from operations totalled A$98-million for the quarter, supported by higher sales and favourable working capital movements. The company ended the period with A$1-billion in cash, down A$88-million from the March quarter, reflecting capital spend related to infrastructure and completion of P1000.

The results offer a measure of resilience amid a choppy lithium market that has cooled since its 2022 highs. “PLS maintains a consistent and disciplined strategy to navigate ongoing market volatility in the lithium sector,” the company said, citing its strong balance sheet, operational flexibility, and cost control focus as key competitive advantages.

Pilbara also upgraded its mineral resource by 23% in the 2025 financial year, reinforcing its flagship Pilgangoora operation as one of the world’s largest hard-rock lithium assets.

Looking ahead, 2026 will be a “pivotal year” focused on unlocking further cost and efficiency gains. The company is guiding to produce 820 000 t to 870 000 t of spodumene concentrate, with unit costs forecast to fall further to A$560/t to A$600/t.

Capital spending is expected to drop sharply to A$300-million to A$330-million, down nearly 45% from the 2025 financial year, reflecting a more targeted investment approach.

Among Pilbara's key initiatives this year will be increasing the use of “contact ore” – a blend of ore and host rock – which is cheaper to mine and allows greater utilisation of total ore output. While this marginally reduces lithium recovery, the trade-off delivers “lower mining costs and improved mine flexibility".

The Ngungaju plant will remain in care and maintenance through the 2026 financial year, part of a streamlined strategy to optimise core assets.

The company is also deferring major project expansions such as Stage 2 of its power strategy, aligning capital deployment with current market conditions. Instead, it will prioritise critical infrastructure such as a new tailings facility and a spare parts warehouse.

Spending on the Colina lithium project in 2026 will remain limited to A$40-million to A$45-million, with a focus on exploration and land acquisition. Most of this spend will be expensed, rather than capitalised.

Despite the weaker pricing backdrop, Pilbara continues to position itself for long-term growth. “A culture of disciplined capital allocation and continuous improvement is deeply embedded across the company,” it said. 

Shares in Pilbara traded nearly 5% higher at A$1.76 a share at the time of writing.