The PLS Group Ltd (ASX: PLS) share price is under the spotlight today after revealing its December quarter update.
PLS Group is a large lithium miner, with its key operations being in Australia with the Pilgangoora project. It also has the Colina project in Brazil.
December 2025 quarter performance
PLS Group reported that its December 2025 production for the three months was 7% lower than the September 2025 quarter at 208kt.
However, its sales of 232kt were 8% higher quarter on quarter.
The lithium price has soared over the last several months, boding well for its revenue and earnings. The sold price for its lithium jumped 57% quarter on quarter to US$1,161 per tonne.
This rapid increase in the lithium price helped revenue surge 49% to A$373 million.
While revenue per tonne soared, costs also increased.
Production costs per tonne excluding freight and royalties (FOB) was US$384 per tonne, up 9% quarter on quarter. This includes mining, processing, transport, port charges, site-based general and admin costs, and is net of any tantalite by-product credits.
Including freight and royalties, unit operating costs (CIF) were up 11% quarter on quarter to US$470 per tonne.
After this performance, the company reported that its cash profit (cash margin from operations) rose A$158 million quarter on quarter to A$166 million. This helped its cash balance improve 12% quarter on quarter on A$954 million.
Strong increase in demand
PLS Group highlighted that there has been strong interest for lithium (offtake) volumes.
Additional production capacity from a possible restart of around 200kt per year Ngungaju plant is being assessed, with early plant operational readiness works completed, positioning it for a potential restart within four months.
The PLS Group board of directors expects to consider a decision in the March quarter.
The lithium miner noted that its P2000 and Colina project studies continue to progress. It plans to provide an update on the scope and timing of both studies in the March 2026 quarter.
Final thoughts on the PLS Group share price
The PLS Group share price is up around 100% over the past year, before today’s movements.
I’m not sure it’s a great buy today unless the lithium price were to rise further. While the commodity price has risen significantly, it’s still a lot lower than it was a few years ago, so we should pay attention to the valuation.
A higher lithium price could lead to increased global supply, which would be a headwind for the lithium price to keep increasing.
I think the PLS Group share price was an opportunistic idea when it was at a lower point, but not so much now.
There are other ASX growth shares I’d look at first.
