PLS Group's (ASX:PLS) Pilgangoora operation and Mineral Resources' (ASX:MIN) Wodgina and Mt Marion mines, all located in Western Australia, are expected to post strong results in the fiscal fourth quarter, Jefferies said in a Wednesday note, citing Port Hedland and Esperance lithium shipping data.
Jefferies raised its sales forecasts for Wodgina and Mt Marion while slightly reducing the estimate for Pilgangoora, but expects all three to exceed consensus amid a drawdown of elevated site inventories.
Wodgina shipments attributable to Mineral Resources exceeded consensus estimates through the fiscal third quarter. The momentum is expected to continue into fiscal Q4, Jefferies said, adding that attributable shipments at Mt Marion also remain strong.
"While [fiscal Q4] performance is strong, we are cautious on extrapolation, particularly at Mt Marion, given rising capitalized stripping into [fiscal year 2027]," the equity research firm said.
It added that both PLS Group and Mineral Resources are well positioned versus guidance on the back of strong production across all assets, coupled with supportive commodity pricing.
Jefferies maintained a hold rating on Mineral Resources with a price target of AU$65. It kept a buy rating on PLS Group while lowering the company's price target to AU$6.50 from AU$6.70.