PLS signs long term power agreement

• Lower operating costs: expected reduction in unit operating costs (FOB) of approximately $15-20/t
• Long-term power supply: 20-year PPA with Fortescue providing a committed minimum of 325 GWh per annum of electricity
• Material emissions reduction: Pilgangoora's power-related emissions intensity expected to decrease

PLS Group Limited (ASX: PLS) has announced that its subsidiary, Pilgangoora Operations Pty Ltd, has signed a 20-year power purchase agreement (PPA) with FMG Clean Energy Pty Ltd, a subsidiary of Fortescue Ltd (ASX: FMG). The agreement involves a minimum supply of 325 GWh per annum of electricity to the Pilgangoora Operation, supporting the growing power demand under the P2000 operating model. This PPA is expected to reduce unit operating costs by approximately $15-20/t, enhance energy security, and significantly increase the share of renewable energy in the Pilgangoora power mix. The agreement is part of PLS's Pilgangoora Power Strategy, aiming to achieve up to an 80% reduction in power-related emissions intensity by FY30.

Lower operating costs, expected reduction in unit operating costs (FOB) of approximately $15-20/t

The PPA is expected to be strongly value accretive, with the lower cost of power and the material reduction in emissions intensity substantially outweighing the capital investment over the term of the agreement.