Fund Manager Summary on Pls Group Ltd (ASX:PLS)
In November 2025, Yarra Capital Management commented that Pls Group Ltd (ASX:PLS) outperformed after a solid operational update showing stronger revenues from improved realised lithium prices, higher production volumes and lower unit operating costs, while the manager remains underweight the lithium sector due to a view that the market will be well supplied for the remainder of the decade. Across fund manager commentary there is a clear shift from early-2025 caution about cash burn and weak lithium pricing toward a consensus that operational strength, low-cost, long-life spodumene assets and a strong balance sheet position PLS to benefit from any sustained recovery in lithium prices; many managers cite structural demand tailwinds from EVs and stationary storage and recent supply-side tightening (notably Chinese curtailments) as drivers of the price rebound, while several funds have used the rally to take profits or rebalance holdings. Key opportunities identified are PLS’s bottom-quartile cost base, production growth optionality (including benefits from the P1000 expansion) and net cash resilience that should amplify returns as prices recover; primary risks include ongoing lithium price volatility, the potential for supply to re-emerge and cap upside, near-term cash burn vulnerability during low-price periods, and market-driven flows (index changes, tax-loss selling and manager reweighting) that can cause significant share-price volatility. Actionable considerations for investors and managers are to monitor realised pricing and margins, unit costs and cash generation, the pace and durability of Chinese supply adjustments, and to use portfolio rebalancing or staged exposure to manage valuation and liquidity risk while retaining exposure to the structural demand story.
Commentary From The Managers
There are 20 insights from 13 fund managers regarding their investment in Pls Group Ltd (ASX:PLS) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Yarra Capital Management
30 Nov 2025
$3.92
Summary
- Yarra Capital Management updates its investment thesis on Pilbara Minerals, noting recent outperformance driven by a solid operational update.
- Stronger revenue outcomes attributed to improved lithium pricing and higher production volumes.
- Lower unit operating costs reinforce Pilbara's position as a relatively resilient producer amid market volatility.
- Portfolio stance: Yarra Capital Management remains underweight the lithium sector, reflecting a view that the market is well supplied for the remainder of the decade.
- Implication: Operational improvements support company resilience, but sector supply dynamics keep Yarra cautious on overweighting exposure.
Ellerston Capital
30 Nov 2025
$3.92
Summary
- Ellerston Capital updates its investment thesis on Pilbara Minerals (PLS), citing recent market moves and price dynamics.
- PLS share price reaction: Pilbara Minerals rallied +22.7% amid the broader lithium rally.
- Spodumene price surge: Prices rose sharply after October's 19% increase, moving from US$977/t to US$1237/t and finishing at US$1150/t, underpinning margin outlooks.
- Stronger demand drivers: Sell‑side sentiment has turned more positive on continued lithium demand, driven by Energy Storage Systems running ahead of installations, AI-related electricity demand, increasing renewables and policy changes in China.
- Supply outlook shift: What was expected to be an oversupply in 2026 is now viewed as more likely to be a deficit, improving the medium‑term market balance.
- Producer profitability improvement: The updated outlook boosts expected profitability for major spodumene producers, including LTR, IGO, PLS and Mineral Resources.
Tyndall Asset Management
30 Nov 2025
$3.92
Summary
- Tyndall Asset Management currently does not hold shares in Pilbara Minerals (PLS).
- This underweight position has negatively impacted performance.
- Pilbara has seen strong performance due to improving lithium prices.
- The rise in lithium prices is driven by increased demand from stationary battery storage.
- Although lithium prices have rebounded from cyclical lows, Tyndall Asset Management believes that current share prices of lithium miners reflect expectations for significantly higher prices.
- Further upside in lithium prices may be limited, as the industry can efficiently bring additional volumes to market.
Australian Eagle Asset Management
30 Nov 2025
$3.92
Summary
- Australian Eagle Asset Management believes PLS Group Ltd offers attractive exposure to the lithium cycle, and increased their position because management has been consistently growing production and reducing unit costs, positioning the company well for the upturn in demand for future-facing minerals.
- Vertically integrated model: ownership across mining, processing and logistics preserves margin, improves operational control and reduces reliance on third-party processors.
- Production growth: management has continued to expand output, supporting scale benefits and greater revenue optionality as demand recovers.
- Unit-cost improvement: ongoing reductions in unit cash costs enhance competitiveness and margin resilience through the cycle.
- Management execution: demonstrated delivery on production and cost targets provides confidence in continued operational improvement.
- Positioning for demand upturn: exposure to lithium aligns the fund with structural electrification and battery demand trends as the market shifts toward future-facing minerals.
Blackwattle Investment Partners
30 Nov 2025
$3.92
Summary
- Blackwattle Investment Partners updates its investment thesis on Pilbara Minerals (PLS AU) — summarising recent performance drivers and operational outlook.
- Recent performance: PLS was a top contributor for the month after rallying ~23% in November as lithium prices rose ~18%.
- Market dynamics: Lithium prices appear to have bottomed following a multi‑year bear market; supply is constrained by uneconomic prices while demand continues to grow, implying ongoing volatility but potential recovery into 2026.
- Company position: PLS is the largest pure‑play lithium stock on the ASX and a 100% owner‑operator of relatively low‑cost, long‑life spodumene mines.
- Balance sheet strength: A strong net cash position gives PLS operational flexibility and a competitive advantage versus indebted peers.
- Operational quality: September quarter showed outstanding results — record production, favourable cost performance and industry‑leading recoveries, with clear benefits from the P1000 expansion.
- Strategic outlook: The P1000 expansion cements PLS’s best‑in‑class spodumene operator status and provides meaningful production growth optionality.
- Value capture potential: PLS is well placed to benefit from any further lithium price recovery due to strong operations, growth optionality and balance sheet strength, supporting potential shareholder value creation through the cycle.
- Risks: Continued lithium price volatility is expected; upside depends on sustained demand growth and tighter supply dynamics.
- Non‑advice note: This summary reflects Blackwattle Investment Partners’ updated investment thesis and is for information only, not financial advice.
Ten Cap
31 Oct 2025
$3.30
Summary
- Ten Cap has increased its exposure to Pilbara Minerals (PLS).
- Stabilising lithium prices have positively influenced the investment outlook.
- The company boasts a strong production profile.
- Its robust balance sheet enhances its positioning in the market.
- Ten Cap believes Pilbara is well-placed to benefit from an improving lithium price outlook.
Yarra Capital Management
31 Oct 2025
$3.30
Summary
- Yarra Capital Management maintains an underweight position in Pilbara Minerals.
- The company experienced a 30% rise in quarterly revenues during the month.
- This growth was supported by improved realised lithium prices.
- Overall, lithium prices increased by 19% in October (Platts 6% Spodumene).
- Despite recent performance, Yarra Capital Management views the lithium market as well supplied for the remainder of the decade.
Infinity Asset Management
31 Oct 2025
$3.30
Summary
- Infinity Asset Management continues to hold a positive outlook on PLS Group Ltd.
- Pilbara Minerals is not held by the fund, despite its recent performance.
- PLS has extended its rally from the June lows, rising a further 31.0% in October.
- The 1Q26 trading update showed solid results, with spodumene concentrate production of 224,800 tonnes (+1.6% QoQ), exceeding market expectations.
- Unit operating costs decreased by 13% QoQ to A$540/t (FOB), also beating expectations.
- While revenue of A$251m was below consensus, it still grew by 30% QoQ, aided by a 20% lift in average realised prices to US$841/t.
- The share price strength is supported by a rebound in spodumene pricing, which has been recovering since July.
- Management expresses increasing confidence that pricing momentum will continue as oversupply diminishes and demand accelerates.
- This demand is driven by stronger EV sales and the expansion of Battery Energy Storage Systems.
Blackwattle Investment Partners
31 Oct 2025
$3.30
Summary
- Blackwattle Investment Partners notes that PLS was one of the largest positive contributors to performance during the month.
- PLS rallied 31% in October, driven by an exceptional quarterly production report and an 18% increase in lithium prices.
- PLS is the largest pure play lithium stock on the ASX.
- As the 100% owner-operator of low-cost, long-life spodumene mines, PLS has a competitive edge.
- With a strong net cash balance sheet, PLS enjoys flexibility compared to its indebted peers.
- Despite a multi-year bear market, lithium prices appear to have bottomed, with supply constrained by low prices and growing demand.
- Further recovery in lithium prices is expected by 2026 if demand remains strong, despite anticipated volatility.
- Blackwattle Investment Partners continues to see material upside for PLS as an improving quality business.
- PLS delivered an outstanding September quarter production result, achieving record production and industry-leading recoveries.
- The benefits from the P1000 expansion have solidified PLS’s position as a best-in-class lithium spodumene operator.
- PLS is poised to benefit from any further recovery in lithium prices, ensuring continued shareholder value creation through the cycle.
DMX Asset Management
31 Oct 2025
$3.30
Summary
- DMX Asset Management sold their investment in Pilbara Minerals after a 36% rise, contributing 1% to performance.
- The lithium sector has seen renewed investor enthusiasm, potentially driven by a short squeeze.
- Original investment thesis was materially impaired due to disappointing lithium pricing.
- Despite the impairment, DMX Asset Management retained and even added to their position near the lows in June.
- Perceived value gap widened, prompting the decision to hold the investment longer.
- Recent rally and moderated expectations created an opportunity for DMX Asset Management to exit the investment.
- The exit was executed near month-end.
Pendal Group
27 Oct 2025
$3.28
Summary
- Pendal Group continues to hold its position in Pilbara Minerals Ltd (PLS) due to strong operational performance.
- Reported a 20.5% increase in share price, reflecting positive market sentiment.
- Demonstrated better recoveries, production, and pricing compared to peers.
- Operationally, Pilbara Minerals is recognized as the best among lithium producers.
- Despite strong performance, cash reserves declined by $122m, primarily due to $50m in working capital adjustments.
Equity Trustees Asset Management
30 Sept 2025
$2.52
Summary
- Equity Trustees Asset Management sold their investment in Pilbara Minerals (PLS) due to a strong stock rally.
- Despite strong performance in the September quarter, the decision was influenced by uncertainty around lithium supply restrictions in China.
- PLS had benefited from a recovery in lithium prices, which were previously at unsustainable levels.
- Newly announced curtailments in China contributed to the price recovery.
- Equity Trustees viewed PLS as a high-quality play in the lithium sector, supported by a strong balance sheet and operations.
- The August results exceeded expectations, and management expressed optimism about future prices.
Monash Investors
31 Aug 2025
$2.43
Summary
- Monash Investors continues to hold Pilbara Minerals (PLS) due to a recovery of 53% this month.
- The stock contributed 2% to the portfolio's performance.
- Additional purchases were made near the stock's lows in June, enhancing portfolio benefits.
- Following the recent re-rate, Monash Investors has halved their weighting to the 2% zone.
- PLS is recognized as a top tier lithium producer with a bottom quartile cost structure.
- The company boasts a 30+ year mine life and a rock-solid cash-rich balance sheet.
- Monash Investors will continue to reposition their small holding in response to sector volatility.
Monash Investors
31 July 2025
$1.61
Summary
- Pilbara Minerals is viewed as a clean and effective exposure to lithium, a key commodity for hybrid and electric vehicles.
- The lithium market is relatively immature, with prices swinging wildly due to supply meeting exponentially growing demand.
- High previous prices led to over-supply, resulting in current prices being considered unsustainably low.
- The majority of current lithium supply is estimated to be loss-making.
- China is curtailing inefficient supply, leading to signs of price recovery.
- Monash Investors maintains a favourable long-term view on lithium and Pilbara Minerals as a principal exposure.
- Pilbara has a bottom-quartile cost structure, multi-decade high-grade reserves, and a strong balance sheet.
- It is well-positioned to navigate lithium market price swings and generate significant free cash flows as prices improve.
- Despite share volatility and a derating from the $3-range to low $1's, Monash Investors has maintained conviction in long-term fundamentals.
- Monash Investors added to their holding around $1.30 in late June, increasing the weighting to 3%.
- Negative sentiment and tax loss selling contributed to share price decline, while the recent recovery added over 0.5% to NAV.
- Pilbara remains a key holding for the Fund as shares continue to appreciate.
Ten Cap
31 May 2025
$1.14
Summary
- Ten Cap continues to hold a short position in Pilbara Minerals (PLS).
- Recent performance: The short position has benefited as lithium prices remain under pressure.
- Financial concerns: A 30% drop in quarterly revenue has raised ongoing cash burn concerns.
- Market sentiment: These factors have weighed on sentiment, validating Ten Cap's cautious view.
- Supply fundamentals: Weakening supply fundamentals are contributing to the decline in lithium prices.
- Balance sheet strength: There are increasing concerns over cash burn and balance sheet strength.
- Near-term outlook: Near-term pricing remains challenged for Pilbara Minerals.
Monash Investors
30 Sept 2024
$3.27
Summary
- Monash Investors notes significant volatility in the lithium market, with the material gaining equity market focus.
- Current lithium prices appear unsustainable due to reduced production at various mines and halted developments.
- Anticipated strong demand growth from electric vehicles suggests lithium prices may rise considerably.
- Pilbara Minerals is well-positioned to benefit from this market backdrop.
- Its principal asset, the Pilgangoora mine, is a Tier 1 asset with low operating costs and expanding volumes.
- Pilbara's robust net-cash balance sheet allows it to endure low lithium prices while capitalizing on opportunities.
- Recently, the company acquired an interesting development project in Brazil.
- Monash Investors rates the Pilbara management team highly and sees shares as attractively priced for this miner.
Monash Investors
30 June 2024
$3.08
Summary
- Pilbara Minerals (ASX: PLS) has decreased by 19%.
- Pilbara owns the world’s largest, independent hard-rock lithium operation.
- Located in Western Australia’s Pilbara region, it produces spodumene and tantalite concentrates.
- Over the quarter, the price of lithium fell significantly, with the Wuxi Lithium Carbonate Index down 15%.
- Monash Investors continues to hold due to the operation's significant market position and resource potential.
Clime Investment Management
31 May 2024
$3.79
Summary
- Clime Investment Management sold their investment in PLS due to valuation concerns.
- Proceeds from the sale have been allocated to higher conviction ideas.
- An oversupply of lithium has led to a muted price outlook.
- Clime retains a stronger conviction in investing in copper for exposure to the energy transition and electrification thematic.
Clime Investment Management
31 Mar 2024
$3.85
Summary
- Clime Investment Management updates their investment thesis on Pilbara Minerals Ltd (PLS).
- March saw lithium miners struggle with metal prices remaining flat.
- Current lithium prices are at cyclical lows.
- Despite market conditions, PLS is viewed as the highest quality miner for pure play exposure to lithium.
- Clime continues to hold a small exposure to PLS.
Clime Investment Management
31 Jan 2024
$3.55
Summary
- Clime Investment Management continues to hold its position in Pilbara Minerals Ltd (PLS).
- The PLS share price has faced challenges, reflecting trends in the broader lithium mining sector.
- Weaker than anticipated lithium prices have led to indiscriminate downgrades in earnings expectations across the sector.
- Despite these challenges, PLS reported a strong quarterly result.
- PLS is focusing on reducing capital expenditure and costs to maintain margins.
- Clime Investment Management maintains a small allocation to high-quality lithium producers via PLS.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Frequently Asked Questions
Who is investing in Pls Group Ltd (ASX:PLS)?
Fund managers including Monash Investors, Ten Cap, Clime Investment Management, Equity Trustees Asset Management, Pendal Group, Blackwattle Investment Partners, DMX Asset Management, Yarra Capital Management, Ellerston Capital, Tyndall Asset Management, Infinity Asset Management and Australian Eagle Asset Management have invested in Pls Group Ltd (ASX:PLS).
Why do fund managers invest in Pls Group Ltd?
Fund managers invest in Pilbara Minerals Ltd (PLS) primarily due to its strong operational performance and market position in the lithium sector. With a robust balance sheet and a bottom-quartile cost structure, PLS is well-positioned to benefit from recovering lithium prices. Its substantial reserves and efficient production make it a lower-risk investment in a volatile market. Moreover, the ongoing demand for lithium, driven by the transition to electric vehicles, further enhances its growth prospects.
What happened to Pls Group Ltd (ASX:PLS)?
Fund managers are increasingly investing in Pilbara Minerals Ltd (PLS) due to its strong operational performance, impressive production results, and solid financial position in the lithium market. Despite historical volatility and recent bear market conditions, PLS has demonstrated resilience with record production and reduced operating costs, positioning it as a leading low-cost producer. The recent recovery in lithium prices, driven by demand for energy storage solutions and supply constraints, has enhanced PLS's attractiveness. Analysts view PLS as a high-quality investment in the lithium sector with substantial growth potential as the market stabilizes and demand continues to rise.
What is the short interest in Pls Group Ltd (ASX:PLS)?
The short interest in Pls Group Ltd (ASX:PLS) is 8.89% which makes it the 19th most shorted stock on the ASX. Of the 3.2B shares that Pls Group Ltd has on issue, 286.5M have been sold short.
What does Pls Group Ltd (ASX:PLS) do?
PLS Group Ltd. engages in the provision of exploration and evaluation of mineral properties. It operates through the China and Other Foreign Countries geographical segments. It focuses on lithium and tantalum properties of Pilgangoora Lithium-Tantalum Project located in the Pilbara region. The company was founded on January 10, 2005 and is headquartered in West Perth, Australia.