The PLS Group Ltd (ASX: PLS) share price jumped 7% after the ASX lithium share announced its FY27 first quarter.
PLS Group is a major lithium miner in Australia with its Pilgangoora operations.
FY27 first quarter update
The company reported how it performed in the three months to September 2026 compared to the three months to June 2026.
PLS Group reported that production increased by 25% quarter on quarter to 267.6kt and sales declined 11% quarter on quarter to 223.6kt. The difference reportedly reflected shipment timings.
The business reported a quarter on quarter decline of 14% of the lithium sold price to US$1,809 per tonne. But, it was still 144% higher year on year.
All of the above led to the company reporting that revenue was down 24% year on year to A$563 million. But, it was up 124% year on year.
Pleasingly, the unit operating cost (free on board) declined 12% quarter to quarter to A$539 per tonne thanks to operational efficiencies and a greater volume of capitalised waste.
The business reported that its cash margin from operations declined 32% to A$392 million and the net cash balance worsened by 5% to A$1.28 billion, partly due to a 50% increase in capital expenditure to A$185 million and payment of the A$161 million FY26 final dividend.
Other updates
The company noted a few different updates after 30 September 2026.
First, it said that the P2000 feasibility study was completed and a final investment decision (FID) was taken. The P2000 project is under construction and is expected to increase production capacity to around 2mt per year, with the first production expected in the three months to September 2029.
Second, PLS Group also said that capital expenditure has been approved for enhancing infrastructure, with the investment expected to deliver reduced operating costs, improved productivity and support the long-term operation of Pilgangoora.
Third, the ASX lithium share said that the Pilgangoora ore reserve and mineral resource was updated, with a 31% increase in the ore reserve containing lithia.
Finally, a power purchase agreement (PPA) signed with FMG Clean Energy Pty Ltd, a wholly owned subsidiary of Fortescue Ltd (ASX: FMG), expected to deliver future A$15 to A$20 per tonne reduction to the FOB cost per tonne and the Pilgangoora power strategy was updated.
Final thoughts on the PLS Group share price
Overall, I think the ASX lithium share is now undervalued and it could be a longer-term opportunity, if lithium remains the global choice for electric vehicle batteries.
