Pls Group Limited · ASX:PLS
Pls — Pilbara Minerals — Diggers and Dealers 2019
34 slides from Pls's conference presentation, Aug 7, 2019
Slide 1: Pilgangoora: a world class lithium and tantalum production center
Pilgangoora: a world class lithium For personal use only and tantalum production center Diggers and Dealers Presentation August 2019 ASX: PLS
Slide 2: Important Notices and Competent Persons Statement
Important Notices and Competent Persons Statement Not an Offer of Securities This document has been independently prepared by Pilbara Minerals Limited (“Pilbara”) and is dated 7 August 2019. This document is provided for informational purposes and does not constitute or contain an offer, invitation,
Slide 3: Important Notices and Competent Persons Statement
Important Notices and Competent Persons Statement U.S. Securities Laws Any securities issued by Pilbara have not been and will not be registered by Pilbara under the United States Securities Act of 1933 (“U.S. Securities Act”). Accordingly, such securities may not be offered or sold in the United St
Slide 4: Pilgangoora Lithium-Tantalum Project
Pilgangoora Lithium-Tantalum Project One of the largest spodumene-tantalite resources in the world For personal use only • 100% owned by Pilbara Minerals (ASX200, market cap ~$850M) • 23-year mine life to date (based on Stage 2) • Established transport and port infrastructure • Stage 1 (2Mtpa) produ
Slide 5: Pilbara Minerals: delivering on project execution
Pilbara Minerals: delivering on project execution Pilgangoora Lithium-Tantalum Project: from first drill hole to product shipment in under four years For personal use only Exploration Stage 1 Stage 2 and Stage PFS, DFS, design Stage 1 / resource Production 3 expansions up to and engineering Project
Slide 6: Stage 1 - production growth
Stage 1 - production growth Plant throughput, utilisation and product grade have continued to meet expectations, supporting consistent production growth over the financial year For personal use only Spodumene concentrate production (dmt) Extended June plant 25,000 shutdown 20,000 Spodumene Concentra
Slide 7: Exceptional growth opportunity
Exceptional growth opportunity A clear expansion pathway to meet customer growth requirements over time For personal use only STAGE 1: 2MTPA STAGE 2: 5MTPA STAGE 3: UP TO 7.5MTPA STAGE: Operations STAGE: DFS and FID complete STAGE: Proposed STATUS: Production and STATUS: Subject to financing STATUS:
Slide 8: Stage 2 5Mtpa expansion
Pilgangoora Stage 2, Aerial photograph w/- Stage 2 3D model overlay 5Mtpa expansion Revised implementation strategies for For personal use only Stage 2 under consideration • Engineering studies underway • Focusing on the potential latent equipment capacity that is evident from the Stage 1 ramp-up •
Slide 9: Pilbara Minerals - connected to the entire supply chain
Pilbara Minerals - connected to the entire supply chain For personal use only Chemical Pre-Cursor Converters Cathode Cells & Li Resource EVs Cathode Material Battery Packs Battery Grade Material LiOH / LC * * 9 *Potential PLS JV partners
Slide 10: Pilgangoora and POSCO - interconnected hard rock supply and hydroxide
Pilgangoora and POSCO - interconnected hard rock supply and hydroxide to feed the growing South Korean market KOREAN COMPANIES BATTERY PLANT EXPANSIONS For personal use only (INCLUDING PLANTS PLANNED FOR EUROPE & CHINA) 300 7 X GROWTH 250 200 Capacity GWh 315ktpa 600ktpa 150 285 100 185 50 40 0 2017
Slide 11: Stage 3 partnering process
Stage 3 partnering process JV partners to be considered, supporting project expansion and potential links to further chemical capacity For personal use only Potential sale of Stage 3 offtake Fully integrated Support funding minority project and further lithium raw package Stage 2 level interest dive
Slide 12: Where is all the lithium (at the right quality) going to come from?
Where is all the lithium (at the right quality) going to come from? For personal use only LONG TERM CONTRACTS MAJOR COMMITMENTS “Over the next 10 years VW will be launching 70+ new 10+ year battery supply agreement LG Chem and pure EVs….” CATL (VW) “The future of Volvo is electric and we are firmly
Slide 13: Pilgangoora is set for a bright future
Pilgangoora is set for a bright future Securing Pilbara Minerals’ position as one of the largest, lowest cost lithium- tantalum producers in the world is the focus of 2019 For personal use only OPTIMISATION Continue Stage 1 optimisation works including achieving design lithia recovery rate contribut
Slide 14: pilbaraminerals.com.au
For personal use only ASX: PLS pilbaraminerals.com.au Follow us on 14
Slide 15: Additional Information
For personal use only Additional Information 15
Slide 16: Corporate overview
Corporate overview CAPITAL STRUCTURE ASX: PLS Current share price1 A$0.47 For personal use only Shares on issue 1,851 million Options on issue2 21.7 million Market capitalisation1 A$870 million Cash at bank3 A$63.6 million Top 20 shareholders (as at 30 June 2019) 39% 3-month average daily volume1 ~1
Slide 17: Experienced board of directors
Experienced board of directors For personal use only Tony Kiernan AO Ken Brinsden Nick Cernotta Sally-Anne Layman Steve Scudamore Non-Executive Chairman Managing Director & CEO Non-Executive Director Non-Executive Director Non-Executive Director Highly experienced company Mining engineer with over 2
Slide 18: Stage 1 - production summary
Stage 1 - production summary Growth in mine production and product shipped during FY19 For personal use only Production Units Q4 FY18 Q1 FY19 Q2 Q3 Q4 FY19 FY19 FY19 FY19 Total Direct shipping ore (DSO) sold wmt 145,974 205,766 01 01 01 205,766 Spodumene concentrate dmt - 11,015 47,859 52,196 63,782
Slide 19: A low-cost hard rock lithium operation
A low-cost hard rock lithium operation Based upon Roskill's most recent lithium cost model, Pilgangoora is expected to be positioned favourably on the global spodumene cost curve For personal use only 2018 spodumene concentrate cost curve 2023 spodumene concentrate cost curve US$/t spodumene 6%, CIF
Slide 20: Global lithium chemicals pricing
Global lithium chemicals pricing Source: FastMarkets, Friday Jul 12 2019 Lithium carbonate ex-works domestic China Lithium hydroxide ex-works China Lithium carbonate min 99.5% Li2CO3 battery grade, ex-works domestic China, yuan per tonne Lithium hydroxide monohydrate min 56.5% LiOH.H2O battery grade
Slide 21: Resources and reserves
Resources and reserves For personal use only JORC Mineral Resource Estimate - September 2018 (using 0.2% Li2O cut off grade) TONNAGE LI2O TA2O5 LI2O TA2O5 FACTORED CATEGORY (MT) (%) (PPM) (T) (MLBS) FE2O3 (%) Measured 22.8 1.38 145 314,000 7.3 0.44 Indicated 112.8 1.29 119 1,456,000 29.5 0.57 Sub-to
Slide 22: Exploration target: demonstrates incredible project mineral endowment
Exploration target: demonstrates incredible project mineral endowment For personal use only Many areas at Pilgangoora remain under-explored and as such are important targets to support future resource growth. MILLION GRADE GRADE TARGET AREA TONNES LI2O % TA2O5 PPM Monster-Houston Creek 5-10 1.2 - 1.
Slide 23: Pilgangoora – a globally significant hard rock lithium resource
Pilgangoora – a globally significant hard rock lithium resource For personal use only 23
Slide 24: Future lithium raw material supply
24 Future lithium raw material supply Lithium hydroxide will become the sought after product for battery manufacturers presenting a significant opportunity for hard rock lithium projects For personal use only Forecast for lithium demand by lithium chemical production across all sectors A stable supp
Slide 25: Strong offtake partners committed to Stage 1 and 2 production
Strong offtake partners committed to Stage 1 and 2 production For personal use only Major producer of lithium chemicals in China Biggest steel producer in South Korea • Highly experienced with more than 15 years of • Listed on KSX, market cap US$29.5B operational and technical know how • Largest pro
Slide 26: Offtake for 100% of Stage 1 and 2 of Pilgangoora
Offtake for 100% of stage 1 and 2 of Pilgangoora Pilbara Minerals For personal use only Stage 1 = ~43Ktpa LCE Mining Stage 1+2 = >110ktpa LCE Stage 1+2+3 = ~160ktpa LCE Stage 1 Stage 2 Spodumene Stage 3 300kt-350ktpa 500kt-550ktpa ~400ktpa Production 2018 2020 General Lithium Ganfeng Lithium Ganfeng
Slide 27: Proposed Pilbara Minerals - POSCO JV
Proposed Pilbara Minerals - POSCO JV Future participation in the rapidly developing Korean lithium ion battery market through a jointly owned lithium chemicals plant For personal use only • Up to 30% JV in chemical conversion facility in South Korea with the capacity of 40ktpa (LCE basis) • Facility
Slide 28: Joint venture with POSCO
Joint venture with POSCO Positioning Pilbara Minerals at the forefront of the rapidly growing South Korea battery market For personal use only • Provides a strategic link to lithium battery and Pilbara Minerals POSCO EV manufacturers • Expands access to the battery industry and PosLX JV Zhejiang Hua
Slide 29: Global battery plant pipeline by plant location
Global battery plant pipeline by plant location Korean based companies market share of plant capacity by country For personal use only 140 (total 285GWh) 800 120 19% 700 (127) 100 686 600 Capacity GWh 80 46% Forecast capacity GWh 500 60 (80) 40 100% 400 (53) 20 17% 300 (25) 0 China Europe Korea USA
Slide 30: Lithium extracted from ore: the future proof solution for Volkswagen
LITHIUM EXTRACTED FROM ORE THE FUTURE PROOF SOLUTION FOR VOLKSWAGEN For personal use only Lithium ore to lithium hydroxide • Commercially more attractive • More stable to extract and easier to scale • Better suited to next generation of batteries Australia the world market leader for ore-based produ
Slide 31: Pilgangoora processing
Pilgangoora processing Spodumene and tantalite concentrate recovery For personal use only • Spodumene concentrate contains lithium in the form of lithia (Li2O), recovered at the mine via the concentrator: ‐ 2-stage heavy media separation for coarse spodumene concentrate ‐ oxide flotation for fine sp
Slide 32: Stage 2 processing plant upgrades to 5Mtpa
Stage 2 processing plant upgrades to 5Mtpa Upgrades to the concentrator will be conducted across two stages (Stage 2 and 3) in order to reach 7.5Mtpa processing capacity For personal use only 1 Stage 2 tailings ⚫ Increase thickener size to cater for 5Mtpa throughput 2 3 1 6 2 Stage 2 spodumene dress
Slide 33: Stage 3 processing plant upgrades (to 7.5Mtpa)
Stage 3 processing plant upgrades (to 7.5Mtpa) Stage 3 will utilise an additional high pressure grinding roll instead of expanding the existing circuit For personal use only 1 Stage 3 spodumene dressing ⚫ Additional concentrate filter ⚫ Increased storage capacity (not shown) 4 1 2 Stage 3 crushing c
Slide 34: What sets us apart?
What sets us apart? 1 World class The Pilgangoora Project is one of the premier hard-rock lithium-tantalum resources globally (by size and grade) where there is both For personal use only lithium resource spodumene concentrate offtake and a joint venture position available, with Tantalite by-product