PLS Group Ltd (ASX: PLS) shares are catching the eye on Friday.
In morning trade, the lithium miner's shares are up 6% to $6.03.
This follows the release of a record-breaking third-quarter update before the market open.
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PLS shares jump on update
Investors have responded positively to news that PLS has delivered a record quarter of production.
According to the release, the company posted a 12% quarter-on-quarter increase in spodumene concentrate production to 232.4kt. Management advised that this reflects strong execution across the Pilgangoora operation, underpinned by improved plant reliability, increased run time, and consistently high lithium recovery.
This means that production is now up 25% year-to-date at 665.2kt.
And while sales were down 16% quarter-on-quarter to 195.7kt, management notes that this was on budget.
Furthermore, with a 61% increase in its realised price to US$1,867 per tonne, revenue jumped 52% to A$567 million.
Another positive is that its unit operating costs reduced by 11% from the last quarter to A$520 per tonne, which reflects higher production volumes and higher capitalised waste stripping.
This resulted in a sizeable cash margin from operations of A$461 million, which is a whopping 178% increase quarter-on-quarter. As a result, at the end of the period, PLS' cash balance had increased by 52% to A$1,455 million.
In addition, since the end of the quarter, the company's balance sheet and funding flexibility has been strengthened with the completion of a US$600 million senior unsecured notes issuance.
Fuel update
PLS has provided an update on its fuel situation amid the war in the Middle East. It stated:
PLS continues to monitor potential supply chain disruptions arising from ongoing geopolitical tensions in the Middle East, particularly in relation to global energy markets and key industrial inputs. The Company is working closely with its long-term contracted suppliers to manage any emerging risks. At this time, PLS does not expect any material disruption to operations or any impact to FY26 guidance.
It also advised that it "does not foresee any immediate supply constraints for other key inputs, including explosives and processing reagents, and continues to work closely with suppliers to ensure continuity of operations."
Outlook
PLS has reaffirmed all its guidance for FY 2026.
This will mean production of 820kt to 870kt with unit operating costs of A$560 per tonne to A$600 per tonne.
It also revealed that it plans to release its guidance for FY 2027 with its next quarterly update.
