Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Pilbara Minerals (ASX:PLS) share price rises on $560 million P1000 investment plan

The Pilbara Minerals Ltd (ASX:PLS) share price is up after the ASX lithium share revealed its $560 million P1000 plan to boost production. 

The Pilbara Minerals Ltd (ASX: PLS) share price has risen after the ASX lithium share revealed its $560 million P1000 plan to boost production.

Pilbara Minerals is one of the largest ASX lithium shares in Australia. But, it has goals of becoming even bigger.

P1000 approved by Pilbara Minerals

The lithium miner announced that the board have approved the final investment decision to increase the nameplate production capacity of its key Pilgangoora project by around 47%, from 680,000 tonnes per annum, to around 1 million tonnes per annum of spodumene concentrate (material that includes raw lithium).

The P1000 project includes an expanded concentrator with increased throughput at the Pilgan plant, along with a range of supporting site infrastructure. Put simply, it will enable Pilbara Minerals to process more material.

It was noted that P1000 will be executed at the same time as the ongoing P680 project (which aims to add an additional 100,000 tonnes per annum to the current production capacity of around 580,000 tonnes per annum).

The P1000 project is targeting ‘first ore’ in the March quarter of 2025 and full production after the commissioning and ramping up at the end of the September quarter in 2025.

How much is this going to cost?

Pilbara Minerals revealed that the estimated P1000 capital expenditure for this is $560 million, including the previously announced pre-final investment decision of $38 million.

By spending this money, the ASX lithium share can unlock “compelling project economics”, with a forecast payback from additional cashflow relative to P680, within 12 months.

The idea of this investment is that it supports the company’s long-term growth strategy to increase production capacity at the Pilgangoora project in line with market demand.

Management commentary

The Pilbara Minerals Managing Director and CEO Dale Henderson said:

This reinforces the exceptional scale and quality of our Pilgangoora Project, which is one of the few hard rock lithium production operations globally that has both the resource size and an existing operating platform to enable a rapid scale-up of production to capitalise on the growing demand for lithium products.

The company has received significant inbound interest for further offtake and downstream partnerships, and we have begun exploring options to maximise the value of the additional product from P1000 including new offtakes and downstream partnerships to extract greater value along the battery minerals supply chain.

Final thoughts on the Pilbara Minerals share price

I think this is a great move by the ASX lithium share. Delivering more production during the period of more demand seems smart and can unlock more cashflow for the business, without pushing down the lithium price.

If the lithium price were to permanently fall to a lower level, then it wouldn’t be as compelling as it is now. It’s possible that batteries of the future could use other materials. But, as of today, I think Pilbara Minerals looks very promising, particularly with its long-term growth plans.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
Skip to content