Australia lithium miner PLS, formerly Pilbara Minerals, has reported a nearly 60% drop in realised spodumene prices during the first half of fiscal 2025, Kallanish reports.

Its spodumene concentrate prices (cif China) for 5.3% grade dropped 58% year-on-year to $688/tonne, while the price for product with 6% lithia fell 59% to $780/t. Such declines were a major hit for its earnings underperformance.

According to its interim financial report, its net income sunk by 132% y-o-y to a loss of AUD 69 million ($38.3m) in the first half ended 31 December 2024. A year earlier, the company had posted a net profit of AUD 220m.

As a result of lower prices, revenue fell 44% to AUD 426m, even though sales volume increased by 37% to 418,600 t. Spodumene concentrate production, meanwhile, rose 28% to a record 408,300 t.

The miner has recently completed the acquisition of Latin Resources in a move to diversify revenue beyond Pilgangoora. It plans to review and optimise the Colina project study in Brazil, which will include further exploration aimed at expanding resource base, test new prospects, and infill the existing mineral resource estimate.

PLS’ management says further planned investment in the Brazilian project will be in line with market conditions and focused on “holding costs, permitting activities, project studies and exploration.”

Earlier this month, PLS also confirmed the resumption of its midstream demonstration plant in partnership with Calix following a recent AUD 15m grant from the Western Australian government. The project was paused in October due to challenging lithium market conditions. Procurement activities have resumed with all construction works set to be completed in the December quarter 2025.

“Our strategy is driven by a clear vision to be a leader in the provision of materials supporting the global energy transition,” ceo Dale Henderson says in the earnings presentation. “The lithium market has been dynamic driven by rapid growth to meet strong underlying demand for lithium products. For PLS navigating this has required a disciplined approach to capital preservation and capital allocation working with the market cycle.”

He adds that a key focus of its strategy has been reinvestment back into the base operations to scale and reduce operating cost. “This flows to widening realised margin, increased leverage for higher priced environments, and of course, being more cycle resilient,” Henderson explains.

Despite soft market conditions, PLS will continue to ramp up extra processing capacity of the P1000 project through the March quarter and into the June quarter.