Lycopodium Ltd Wins A$22M Engineering Contract for Pilgangoora Expansion

Lycopodium wins ~A$22M engineering contract for Pilgangoora expansion

Lycopodium Limited (ASX: LYL) has been awarded the Detailed Engineering Services contract by Pilgangoora Operations Pty Ltd, a subsidiary of PLS Group Limited (PLS). The scope covers design of the Wet Plant, supporting PLS as it progresses towards a final investment decision (FID) on the P2000 Expansion Project in Western Australia.

The contract is valued at ~A$22 million, with work commencing immediately. The award follows Lycopodium’s earlier delivery of the Front-End Engineering Design (FEED) for the Wet Plant, marking a continuation of an established engagement rather than a new client relationship. For investors, it represents a fresh, fee-based revenue stream secured from a repeat, world-class resources client.

What the contract covers and why it matters

The award is specifically a Detailed Engineering Services contract for the design of the Wet Plant. It is not a construction contract for the plant itself. Any construction remains contingent on the expansion being approved by the PLS Board.

The P2000 Expansion Project, if approved, would involve constructing a new processing plant to expand capacity to approximately 2 million tonnes per annum of lithium spodumene concentrate. The new processing facility and crushing circuit would be located to the east of the existing Pilgan plant.

The Pilgangoora Operation comprises two processing plants, the Pilgan and Ngungaju plants, located approximately 140 kilometres southeast of Port Hedland in Western Australia’s Pilbara region. According to the company, Pilgangoora is one of the world’s largest hard rock lithium operations.

Key facts of the award include:

• Client: Pilgangoora Operations Pty Ltd (subsidiary of PLS Group Limited)

• Contract type: Detailed Engineering Services (Wet Plant design)

• Value: ~A$22 million

• Status: Work commencing immediately; supports PLS’s path to FID

• Precedent: Follows Lycopodium’s completed FEED for the Wet Plant

The engagement reinforces Lycopodium’s exposure to the lithium and energy transition thesis, alongside its role as a trusted, multi-stage engineering partner.

Building on a multi-year PLS relationship

This latest award continues a relationship spanning several years. Lycopodium has worked with PLS across various expansion stages of the Pilgangoora Operation, including the Mid-Stream Demonstration Plant Project.

The progression from FEED to detailed engineering demonstrates deepening client trust and repeat-award momentum, a pattern that speaks to the stickiness of Lycopodium’s resources-sector engagements.

The PLS relationship follows a pattern visible elsewhere in Lycopodium’s portfolio: the Tulu Kapi Gold Project in Ethiopia similarly progressed from an original feasibility study mandate through to a A$118 million Engineering, Supply and Labour Hire contract, illustrating how early-stage technical work can convert into substantially larger execution revenue.

Peter De Leo, Managing Director & CEO

“Lycopodium has been working with PLS in the ongoing development of its flagship Pilgangoora Operation for a number of years now, including through various stages of expansion and the Mid-Stream Demonstration Plant Project, and we are extremely pleased to continue our involvement with this world-class operation that provides vital input into the global energy transition.”

Understanding engineering services contracts

For readers less familiar with major project delivery, engineering work typically progresses through several defined stages. It begins with feasibility studies, moves to Front-End Engineering Design (FEED), then Detailed Engineering, and finally construction.

Detailed engineering is the stage where design concepts are converted into buildable, fabrication-ready specifications ahead of construction. It provides the technical foundation a client needs before committing capital.

A Final Investment Decision (FID) is the point at which a client’s board formally commits the capital required to build a project. Lycopodium’s current work is intended to support PLS in reaching that decision point.

Why does this matter to investors? Securing work early in a project’s lifecycle often positions an engineering firm favourably for later stages, while demonstrating recurring, fee-based revenue from established resources clients.

What this means for Lycopodium investors

The award reinforces Lycopodium’s positioning across the Resources, Industrial Processes and Rail Infrastructure sectors, and its leverage to lithium demand tied to the global energy transition.

Repeat, multi-stage engagements with a Tier-1 lithium producer offer evidence of pipeline strength and client retention. Lycopodium’s global footprint, with offices across Australia, the Americas, Africa and the Philippines, provides additional context for its geographic and commodity diversification.

A comparable dynamic is underway at the Katanning Gold Project early works deal, where Lycopodium holds preferred EPC contractor status and has commenced detailed engineering on a A$6.0 million preparatory phase ahead of a potential full contract award contingent on Ausgold reaching a positive FID.

What comes next

Lycopodium’s detailed engineering work now supports PLS in progressing towards a final investment decision on the P2000 Expansion Project.

Any construction of the new processing plant remains contingent on approval by the PLS Board. No construction contract has been awarded to Lycopodium at this stage, and no FID date or future contract value has been disclosed.

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