Pls Group Limited · ASX:PLS
Pls — Investor Presentation (August 2023)
60 slides from Pls's investor presentation, Aug 2, 2023
Slide 1: Growing a major lithium materials business
Growing a major lithium materials business ASX: PLS Site Visit Investor Presentation Wednesday 2 August 2023
Slide 2: Dale Henderson, Managing Director and CEO
Dale Henderson Managing Director and CEO 2
Slide 3: Acknowledgement of Country
Acknowledgement of Country Pilbara Minerals would like to acknowledge the Traditional Owners of the land we are meeting on, the Whadjuk People of the Noongar Nation. As well as the Nyamal and Kariyarra People, who are the Traditional Owners of the land in which the Pilgangoora Operation is located o
Slide 4: Investor presentation agenda
Investor presentation agenda 1500 Presentation commences Dale Henderson, MD and CEO Sandra McInnes, CSO Luke Bortoli, CFO Vince De Carolis, COO Paul Laybourne, Project Director Alex Eastwood, CCO and CLO John Stanning, CDO 1630 Q&A 1700 Networking and drinks on L18 4
Slide 5: Site tour agenda
Site tour agenda 0600 Arrive Perth airport for flight 1000 Arrive at site 1010 Safety briefing and PPE 1030 Tour begins 1230 Lunch 1330 Tour resumes 1445 Site tour concludes 1500 Depart site for airport 1900 Arrive at Perth airport 5
Slide 6: Delivering our strategy
Delivering our strategy Operate Deliver our operating performance commitments To be a leader Grow Achieve the full potential of the Pilgangoora asset in the provision of sustainable battery materials products Chemicals Extract greater value along the battery materials supply chain Diversify Diversif
Slide 7: Major Australian operation
Major Australian operation One of the few major hard-rock lithium producers globally Two plants 25 + years 1 in operation mine life 159 Mt 2 +70% 3 at 1.2% Li2O Ore Reserve – update increase in production under pending construction 1 The 25 year life of mine and ore mined referenced is from 1 July 2
Slide 8: Amazing growth journey with more to come
Amazing growth journey with more to come Major milestones achieved along the way 2017 2018 2019 2020 2021 2022 2023 Initial US$100M Strategic Commercial Re-finance – Altura POSCO JV Nordic Bond, relationship production at new senior debt acquisition finalised cornerstone formed with Pilgangoora faci
Slide 9: A transformational year
A transformational year Major milestones achieved in the 2023 financial year Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Accelerated growth $250M Aus Govt and new P680 construction Record quarter for Mid-Stream mandate endorsed by US$113M financing facility contract awarded production and sales Demonstr
Slide 10: Tier 1 address in the Pilbara
Tier 1 address in the Pilbara • Large tenement holding to support site operations and future exploration – 1,086km2 • Site serviced by nearby Wodgina airport for FIFO access • Proven product logistics pathway via Port Hedland – associated engineering support services within ~1.5 hours of site • Plan
Slide 11: Pilbara Minerals - a major lithium materials supplier
Pilbara Minerals - a major lithium materials supplier 8% of global supply Total supply (hard-rock and brine)4 Estimated global mined lithium supply by corporate control, CY23 (lithium carbon equivalent (LCE) 1.1 Mt LCE 11
Slide 12: Spodumene concentrate production
Spodumene concentrate production Rapid production growth continuing with construction on track Production Expanded nameplate capacity >10006 successful exploration, studies and approvals 7 ~ 70% Future expansion potential subject to FID made construction to commence 6 6805 (kdmt) 620 increase in pro
Slide 13: Global spodumene production capacity
Global spodumene production capacity Spodumene production capacity vs peers8 Production Post ramp up of the P1000 expansion, Pilgangoora 1,000 Development and exploration is expected to be the second largest producing hard rock lithium mine in the world, with Spodumene concentrate capacity (ktpa) in
Slide 14: Pricing stabilising
Pricing stabilising10 $90,000 $7,000 $80,000 $6,000 $70,000 $5,000 $60,000 Spodumene US/t $4,000 Hydroxide US/t $50,000 $40,000 $3,000 $30,000 $2,000 $20,000 $1,000 $10,000 $- $- Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 BMI BG Hydroxide CIF Asia (spot and c
Slide 15: Expanding lithium deficit
Expanding lithium deficit 7 Expected deficit 6 in lithium by 2040 is the Operational equivalent of 12 - 20 5 Secondary Potential (LCE Mt) Demand 4 11 3 Pilgangooras dependent on potential supply coming online 2 1 0 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 15
Slide 16: Sandra McInnes, Chief Sustainability Officer
Sandra McInnes Chief Sustainability Officer 16
Slide 17: Sustainability
Sustainability Community investment Focused on making a positive contribution, • Multi-year partnerships with Earbus minimising our impact and maximising Foundation, Smith Family, Teach, Learn, Grow, Women’s Legal Service opportunities • Strelley Community Renewable Energy and Lithium battery projec
Slide 18: High level decarbonisation plan
High level decarbonisation plan Several initiatives being pursued to reduce emissions and position ourselves to meet our net zero ambition (scope 1 & 2 emissions) Early opportunities • 6MW solar PV • Power study • Potential transition to LNG Mid-term opportunities • Solar and batteries HME, HV and L
Slide 19: Environment and Land Access
Environment and Land Access Research We are passionate about our contribution and strive • Supporting University studies into to make a positive impact in our work Spinifex seed germination for rehabilitation • Working with DWER on research on Lithium pathways in the environment Conservation • Exten
Slide 20: Great people
Great people Inclusion and Wellbeing We are a proud team of talented and grounded people who • Annual culture survey achieving 78% value diversity and have each other’s back engagement rate • Mental Health Strategy – Mental Health First Aiders and psychosocial hazards training for key positions • Ap
Slide 21: Luke Bortoli, Chief Financial Officer
Luke Bortoli Chief Financial Officer 21
Slide 22: Stronger year on year – FY23
Stronger year on year – FY23 Year12 • Group revenue increased 238% in FY23 to $4.0B Units FY22 FY23 (%) versus $1.2B in the prior period, reflecting Production kt 377.9 620.1 64 • 68% increased sales volumes facilitated by Sales kt 361.0 607.5 68 product grade strategy and improved Realised Price13
Slide 23: Strong cashflow supports cash balance
Strong cashflow supports cash balance Increase in production and strong cash margin from operations supports growing cash balance 3,500.00 $3.3B Cash 3,000.00 2,500.00 ($M) 2,000.00 $M 1,500.00 $920M 1,000.00 500.00 Cash Margin from Operations for 0.00 Q4 FY2317 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 De
Slide 24: Vince De Carolis, Chief Operating Officer
Vince De Carolis Chief Operating Officer 24
Slide 25: Spodumene concentrate production
Spodumene concentrate production Rapid production growth continuing with construction on track Production Expanded nameplate capacity >10006 successful exploration, studies and approvals 7 ~ 70% Future expansion potential subject to FID made construction to commence 6 6805 (kdmt) 620 increase in pro
Slide 26: Focused on safety and people
Focused on safety and people Great people that go home safe and well every day 4.69 1.42 (target 1.00) ~23% Total recordable injury Quality safety Interactions19 Female employment frequency rate (TRIFR)18 completed per 1,000 hours 26
Slide 27: Pilgangoora Operations
East Pit Pilgangoora Operations Central Pit South Pit Pilgan Plant Ngungaju Plant Solar Farm
Slide 28: Mining operations
Mining operations Owner-operator mining model • 7 x Excavators (mixed size) • 10 x Dozers • 27 Dump trucks (140t) • 26 Blast Hole Drill Rigs • 3 x MPU Sweeney’s Mechanical Services (SMS) – supply fleet and maintenance services for Load and Haul Milo Burwick & Sons (MBS) – supply drilling and blastin
Slide 29: Central pit
Central pit Multi decade asset Central South Lynas and (inc Far Monster Total Find Eastern East) Ore Reserve 81.7 64.6 6.5 2.5 155.2 (Mt)20 % of 53% 42% 4% 2% 100% Reserve Li2O% 1.24 1.08 1.18 1.73 1.18 Ta2O5 ppm 122 71 130 86 101 Fe2O3% 1.17 0.83 1.36 0.64 1.03 20 Open Pit Ore Reserves as at 30 Jun
Slide 30: Central and Eastern pit mine life
Central and Eastern pit mine life21 Eastern – FY47 Central – FY47 Future dimensions – 2.5km long, 865m wide, 390m deep 21 Open Pit Ore Reserves as at 30 June 2022 exclusive of stockpiles 30
Slide 31: Implementing technology and innovation
Implementing technology and innovation Productivity improvement initiatives (short-term) • Electronic progressive log of drilling (plod) for load and haul to capture and display operational performance in real time • Titan payload system-direct feedback to excavator operator on truck payload (real t
Slide 32: Pilgan process plant
Pilgan process plant • 2.4Mtpa processing capacity Crushed Ore Coarse Stockpile (COS) Filtration • Two stage primary crushing concentrate HMS • High Pressure Grinding Rolls (HPGR) crushing HPGR Flotation • Heavy Media Separation (HMS) Milling • Flotation circuit 32
Slide 33: Ngungaju process plant
Ngungaju process plant Crushing ROM • 1.4 Mtpa Processing plant • Two stage primary crushing DMS • High Pressure Grinding Rolls crushing Milling Flotation • Dense Media Separation (DMS) Concentrate stockpile • Flotation circuit DMS 33
Slide 34: 34
34
Slide 35: Paul Laybourne, Project Director
Paul Laybourne Project Director 35
Slide 36: Spodumene concentrate production
Spodumene concentrate production Rapid production growth continuing with construction on track Production Expanded nameplate capacity >10006 successful exploration, studies and approvals 7 ~ 70% Future expansion potential subject to FID made construction to commence 6 6805 (kdmt) 620 increase in pro
Slide 37: P680 to increase plant capacity by 100ktpa
P680 to increase plant capacity by 100ktpa 1st Stage – Primary Rejection Additional Heavy Media Separation Circuit • Duplication of the HPGR screen building • Two HMS trains for classification and separation • Waste (floats) & Ore (sinks) conveying system • Replacement reflux classifier • Constructi
Slide 38: Crushing and ore sorting facility
Crushing and ore sorting facility 2nd Stage – Crushing and Ore Sorting Facility • New 5Mtpa crushing circuit to replace existing contracted crushing services and future proof P1000 • To be world’s largest lithium mineral ore sorting facility • Civil and Concrete works in execution, long lead items a
Slide 39: P1000 to increase plant capacity to 1Mtpa
P1000 to increase plant capacity to 1Mtpa Increase in plant capacity and infrastructure • Tertiary crushing, Ball Mill, Flotation circuit and pre-flotation magnetic separation • Power plant expansion, inclusion of gas and batteries • Construction of a new 15ML Pilgan raw water storage dam • Extensio
Slide 40: Mid-Stream Demonstration Plant FID taken
Mid-Stream Demonstration Plant FID taken • R&D development with Calix to demonstrate electric kiln technology • Potential to reduce hard-rock lithium processing carbon emission intensity if powered by renewable energy • Successful demonstration of the technology may lead to its commercialisation at
Slide 41: Electric calcination to reduce carbon emissions
Electric calcination to reduce carbon emissions • Independent LCA indicates that converting spodumene in an electric calciner, using 100% 8.8 16.4 renewable energy, could reduce calcination carbon emissions intensity by >80%23 • Targeting reduction in carbon emissions in one of kg CO₂ eq. / kg LiOH·
Slide 42: Alex Eastwood, Chief Commercial and Legal Officer
Alex Eastwood Chief Commercial and Legal Officer / Company Secretary 42
Slide 43: Chemicals
Chemicals Strategically positioned to integrate further downstream and increase the captured value across the lithium supply chain Midstream project Downstream partnership has the potential to reduce integrates Pilbara Minerals in the carbon emissions and T lithium materials supply chain25 access em
Slide 44: Downstream facility with POSCO advancing
Downstream facility with POSCO advancing 43k tpa lithium hydroxide facility in Gwangyang, South Korea in joint venture with POSCO Train 1 – 38% complete (on schedule) • Construction of civil structure for calcining and roasting complete • Steel structure for key infrastructure installed • Commission
Slide 45: South Korea – a growing strategic hub
South Korea – a growing strategic hub JV with POSCO places Pilbara Minerals at the forefront of the growing South Korean lithium chemicals and battery manufacturing hub South Korea Lithium chemical and battery producers South Korea Car manufacturers 45
Slide 46: POSCO Pilbara Minerals Lithium Solutions
POSCO Pilbara Minerals Lithium Solutions Becoming a globally significant lithium chemicals producer Estimated Ex China LiOH nameplate production capacity by operator, CY2626 120 100 80 (LCE kt) 60 40 20 0 Albemarle SQM Halmek Covalent TLEA P-PLS JV Piedmont Lithium Livent Keliber Allkem 46
Slide 47: Strategic partnering process
Strategic partnering process Opportunity to access lithium raw materials from a world-class deposit Partnership opportunity with Pilbara Minerals on downstream lithium conversion facility in a mutually agreed location Long-term lithium supply up to 300,000tpa spodumene concentrate allocated to under
Slide 48: John Stanning, Chief Development Officer
John Stanning Chief Development Officer 48
Slide 49: Globally significant lithium resource
Globally significant lithium resource Global hard-rock lithium landscape (bubble size represents Resource LCE)27 2.0% Development & Exploration Production 1.8% Greenbushes 1.6% Li2O grade (%) 1.4% 1.2% Pilgangoora 1.0% Wodgina 0.8% 0.6% 0.4% - 100 200 300 400 500 Resource (Mt, 100% basis) 49
Slide 50: Drilling and Resource linkage – update pending
Drilling and Resource linkage – update pending 350 350 FY23 Drilling Campaign 300 300 January 2021 250 Altura acquisition 250 RC & DD Drilled Metres (K) Tonnes (M) 200 200 150 150 100 100 50 50 0 0 30-Jun-14 30-Jun-15 30-Jun-16 30-Jun-17 30-Jun-18 30-Jun-19 30-Jun-20 30-Jun-21 30-Jun-22 30-Jun-23 Re
Slide 51: FY23 drilling campaign targeting resource extensions
FY23 drilling campaign targeting resource extensions • ~46,900m of drilling (153 holes) completed in FY23 • Drilling is targeting extensions to the key pegmatite domains within the existing mine footprint along with testing numerous exploration targets in the wider Pilgangoora Project area • Assay r
Slide 52: Further extension targets to be drill tested in FY24
Further extension targets to be drill tested in FY24 Monster Corridor • Future drilling programs across various areas of Pilbara’s 10km of strike to target: East Extension • Monster corridor • East extension • Mt York area • Southlands Central Extension • ~20,000m of drilling planned in FY24 Mt York
Slide 53: Diversifying revenue beyond Pilgangoora
Diversifying revenue beyond Pilgangoora Pilbara’s Purpose and Vision Initial inorganic growth focus areas Competitive Asset quality & advantage - speed to hard-rock • Build out of corporate development team market lithium concentration • Prioritise downstream partnering process Inorganic Growth • Ma
Slide 54: Questions
Questions Follow us on pilbaraminerals.com.au ASX: PLS 54
Slide 55: Appendices
Appendices So Pilbara Minerals
Slide 56: Appendix A – End Notes
Appendix A – End Notes 4. Source: Benchmark Mineral Intelligence. June Quarter 2023 data. The slide shows market share based on estimated CY2023 global mined lithium output (Mineral & Brine, LCE and Mineral, LCE respectively), for operational and highly probable projects (in construction). Based on
Slide 57: Appendix B - Supporting data: Spodumene production capacity
Appendix B (slide 13) - Supporting data: Spodumene production capacity Source: Company filings as at 12 June 2023. Note: Current installed production capacity and where not available, annual production. Where an existing producer, developer, explorer has planned expansions and a Final Investment Dec
Slide 58: Appendix C - Supporting data: Hard-rock Mineral Resources
Appendix C (slide 49) - Supporting data: Hard-rock Mineral Resources Source: Company filings as at 29 July 2023. Note: Figures are rounded. Reported on a 100% asset basis. 1. Ranked by contained LCE. 2. Company reporting the Mineral Resource; 3. Li2O converted to LCE using a factor of 2.473. 58
Slide 59: Important notices
Important notices This document has been prepared by Pilbara Minerals Limited (“Pilbara” or “Pilbara Minerals” or the “Company”) and is dated Wednesday 2 August 2023. Not an offer of securities This document is provided for informational purposes and does not constitute or contain an offer, invitati
Slide 60: Important notices
Important notices Important Information regarding Mineral Resources, Ore Reserves and P680 and P1000 Projects Information in this presentation regarding expansions in nameplate capacity of the Pilgan Plant in respect of the P680 and P1000 projects are underpinned by the Company’s existing Ore Reserv