PLS Group Limited · ASX:PLS
PLS — Pilbara Minerals — Investor Presentation (September 2016)
24 slides from PLS's investor presentation, Sep 20, 2016
Slide 1: Pilgangoora Lithium-Tantalum Project
Pilgangoora Lithium-Tantalum Project ASX: PLS The world’s leading lithium development project Definitive Feasibility Study Release – Base Case, 2Mtpa Pre-Feasibility Study Release – 4Mtpa Expansion Option 20 September 2016
Slide 2: Disclaimer and Competent Person’s Statement
Disclaimer and Competent Person’s Statement Forward Looking Statement Disclaimer ► This presentation may contain some references to forecasts, estimates, assumptions and other forward-looking statements. Although the Company believes that its expectations, estimates and forecast outcomes are based o
Slide 3: Pilbara Minerals – Overview
Pilbara Minerals – Overview ► 100% ownership of the world-class Pilgangoora Lithium-Tantalum Project in WA’s Pilbara region ► Significant lithium-tantalum reserve, with major exploration upside ► Second largest spodumene-tantalite resource in the world ► DFS confirms technical and financial viabilit
Slide 4: Developing a World-Class, Long-Life Lithium Mining Centre
Developing a World-Class, Long-Life Lithium Mining Centre ►Pilgangoora Project located 120km south of Port Hedland in WA’s Pilbara region ►Reserve location offers strategic advantages for infrastructure access, mining approvals and lower cost of operations ►High quality DFS demonstrates economic pot
Slide 5: Board of Directors
Board of Directors Tony Kiernan Steve Scudamore Robert G Adamson Neil Biddle Ken Brinsden John Young Non-Executive Non-Executive Non-Executive Non-Executive Director MD and CEO Technical Director Chairman Director Director Highly experienced Highly experienced Geologist with over 40 Geologist and Co
Slide 6: Corporate Summary
Corporate Summary Pilbara Minerals Share price – as at 14 September, 2016 Capital Structure ASX: PLS Shares on issue 1150 million Top 20 shareholders Approximately 37% Unlisted Options 114 million Cash at 31/08/2016 $96 million Market capitalisation $633 million @ 55¢ Debt Nil Enterprise Value $537
Slide 7: Project Highlights
Project Highlights Outstanding project economics driven by very low cost of operations DFS OUTCOMES, 2Mtpa Process Capacity Base Case ► Average annual production of approximately 314ktpa of 6% spodumene concentrates (44ktpa of Lithium Carbonate Equivalent or LCE) and 321,000lbs pa of tantalite ► LOM
Slide 8: Pilgangoora – Mining
Pilgangoora – Mining A straightforward open pit mining proposition ► Measured, Indicated and Inferred Resource of 128.6Mt @ 1.22% Li2O and 138ppm Ta2O5 containing 1,572,000 tonnes Li2O, and including 39Mlbs Ta2O5 ► Updated Ore Reserve of 69.8Mt @ 1.26% Li2O and 132ppm Ta2O5 ► Conventional open pit m
Slide 9: Pilgangoora – Processing
Pilgangoora – Processing Improved Lithia and Tantalite Recovery ► 2-stage heavy media separation ► Gravity separation, tantalite recovery ► Improved Tantalite recovery, concentrate grade and pricing outcomes ► Grinding leading to oxide flotation ► Low/High intensity magnetic separation ► High grade
Slide 10: Pilgangoora 2Mtpa DFS Complete
Pilgangoora 2Mtpa DFS Complete Progressing to project execution Stage 1 Stage 2 Stage 3 Stage 4 Resource PFS (2Mtpa) DFS (2Mtpa) Project Growth Complete Complete Execution Resource Estimation Project Definition Detailed Design and Finance / Permitting – ► JORC Inferred ► Maiden reserve, Project Plan
Slide 11: A Rapid Pathway to Financing, Development and Production
A Rapid Pathway to Financing, Development and Production 11
Slide 12: 4Mtpa Expansion Option – PFS Complete
4Mtpa Expansion Option – PFS Complete Outstanding economic returns ► Modest incremental capital to expand to 4Mtpa, A$128M ► LOM Average annual production of approximately 564ktpa of 6% spodumene concentrates inclusive of technical grade product (75ktpa LCE); 579,000lbs of tantalite ► LOM cash opera
Slide 13: Pilgangoora – A Globally Significant Lithium Resource
Pilgangoora – A Globally Significant Lithium Resource Talison Lithium Greenbushes Pilbara Minerals Ltd Nemaska Exploration Exploration Target Whabouchi - Canada (2016, 130-150Mt) MIN / NeoMetals Mt Marion RB Energy Ltd Quebec - Canada Altura Mining Ltd Galaxy Resources Pilgangoora Mt Caitlin Pilbara
Slide 14: Global Lithium Markets Surging Demand – Tight Supply
Global Lithium Markets Surging Demand – Tight Supply ► Pilgangoora spodumene concentrates meet the metallurgical specifications of the entire range of lithium products ► Cornerstone off-take agreement with General Lithium ► Over 100% of projected lithium oxide production subject to non-binding MOU’s
Slide 15: China – A Lithium Consumption Powerhouse
China – A Lithium Consumption Powerhouse ► Broad Central Government policy position towards Supply / Demand Concentrate Capacity ‘New Energy’ (SC6.0% Equivalent Tonnes) 2500 ► Domestic carbonate pricing took-off coincidentally with acceleration in EV, Electric Bus sales 2000 SC6.0 Demand/Supply Tonn
Slide 16: Pricing, Outlook
Pricing, Outlook ►Forecast price deck derived from basket of Price forecast – Battery-grade Lithium Carbonate independent economic and bank/broker models ► China domestic pricing, import pricing and spodumene import pricing models ►Expectation that domestic battery grade carbonate pricing and import
Slide 17: General Lithium – a major producer of lithium chemicals in China
General Lithium – a major producer of lithium chemicals in China ► Listed on NEEQ, Beijing, Code No: 837358 ► Currently produces 8,000tpa of Lithium Carbonate (LC) & 2,000tpa of High Purity LC 4N (99.99%) ► Soon to commission 5,000tpa of Lithium Iron Phosphate (LFP), Li battery cathode powder materi
Slide 18: Lithium Raw Materials – Battery Supply Chain
Lithium Raw Materials – Battery Supply Chain Future Value Added Products Pilbara and General Lithium Spodumene Lithium Upgraders Cathode & Battery E Transport Mine Carbonate/Hydroxide & Component Electrolyte Producer Producer Grid Storage Mixers Producers & Grid Stabilisation Downstream value-added
Slide 19: Downstream Chemical Processing
Downstream Chemical Processing ► Strategy is to develop partnerships with key lithium chemicals industry participants ► Access to technology, operating expertise and intellectual property ► Shortcut to Pilbara’s participation in downstream lithium chemicals market, supporting the Company’s future gr
Slide 20: Summary Key investment takeaways
Summary Key investment takeaways Emerging low- Largest lithium Outstanding Ideally placed to cost Australian resource and project Rapid pathway to capitalize on robust strategic high grade economics financing and market outlook and metals relative to ASX- demonstrated production demand producer list
Slide 21: Additional Information
Additional Information Developing a globally significant new Australian lithium business 21
Slide 22: Resources & Reserves
Resources & Reserves Resources: Category Tonnage Li2O (%) Ta2O5 (ppm) Fe2O3 (%) Li2O (T) Ta2O5 (Mlbs) (Mt) Measured 18.0 1.36 150 0.45 245,000 5.9 Indicated 65.6 1.24 131 0.61 812,000 19.0 Inferred 45.0 1.15 144 0.73 515,000 14.2 Total 128.6 1.22 138 0.63 1,572,000 39.2 Reserves: Category Tonnage Li
Slide 23: Global Motor Vehicle Lithium Demand
Global Motor Vehicle Lithium Demand ► Tesla Model 3 to be released in ► China, Japan and Korean Government 2017, retail price of US$36,000, policy strongly supports EVs with large 400,000 orders already and growing rebates, zero sales tax and free licensing ► Mercedes Benz releasing 12 new models of
Slide 24: Pilgangoora Lithium-Tantalum Project
Pilgangoora Lithium-Tantalum Project Developing a globally significant new Australian lithium project
Pilbara Minerals — Investor Presentation (September 2016) on 6ix