PLS Group Limited · ASX:PLS
PLS — Pilbara Minerals — Macquarie Australia Conference 2023
29 slides from PLS's conference presentation, May 3, 2023
Slide 1: Growing a major lithium materials business
Growing a major lithium materials business Dale Henderson Managing Director and Chief Executive Officer ASX: PLS Wednesday 3 May 2023 Macquarie Australia Conference, Sydney
Slide 2: Important notices
Important notices This document has been prepared by Pilbara Minerals Limited (“Pilbara” or “Pilbara Minerals” or the “Company”) and is dated Tuesday 2 May 2023. Not an offer of securities This document is provided for informational purposes and does not constitute or contain an offer, invitation, s
Slide 3: Important notices
Important notices Forward looking statements Statements contained in this document, including but not limited to those regarding possible or assumed production, sales, future capital and operating costs, projected timeframes, performance, dividends, returns, revenue, exchange rates, potential growth
Slide 4: Important notices
Important notices Financial information In order to provide additional insight into the business, certain non-IFRS measures such as “EBITDA”, “underlying profit after tax”, “Cash Balance inclusive of LOC” and “”Net Cash/(Debt)” may be used in this presentation which are unaudited, non-IFRS measures
Slide 5: Pilbara Minerals
Pilbara Minerals ASX 50 I Largest, independently owned, hard-rock lithium company in the world Tier 1 ~1Mtpa 1 25+ year 1 asset with strong planned production mine life growth potential capacity 1. Based on combined 6.3Mtpa throughput operations consisting of 1.3Mtpa Ngungaju process plant and the p
Slide 6: Pilgangoora Project
Pilgangoora Project One of the few major hard-rock lithium producers globally Tier 1 asset Two plants with strong growth potential in operation ~580,000 tpa 1 25 + years 2 processing capacity (current) mine life 1. Assumed product grade of SC5.7% 2. Refer to ASX Announcement 29 March 2023 6
Slide 7: Amazing growth journey with more to come
Amazing growth journey with more to come Major milestones achieved along the way Mid-stream Project with Calix JV finalised Strategic relationship Re-finance - new senior debt facility at POSCO JV finalised formed with POSCO lower cost (CEFC and BNP Paribas) $20M Aus Govt grant awarded for Mid-strea
Slide 8: Major lithium materials supplier
Major lithium materials supplier 8% Pilbara Minerals 13% Pilbara Minerals Mineral and Brine Mineral Estimated global mined lithium supply by corporate control, Estimated global mineral lithium supply by corporate control, CY23 (mineral & brine, LCE) CY23 (mineral, LCE) Source: Benchmark Mineral Inte
Slide 9: Operate
Operate So Pilbara Minerals
Slide 10: March 2023 quarter results
March 2023 quarter results Financial results $1.1Bn $2.7Bn 11 cents per share Spodumene sales receipts Cash balance Fully franked interim dividend - $329.8M Spodumene production and sales results Produced – Shipped – Average Realised Price – 148,131 dmt 144,312 dmt US$4,840/dmt 1 (Prior Quarter: 162
Slide 11: Rising cash balance – strong production volumes and operating margin
Rising cash balance – strong production volumes and operating margin 3,000 2,500 $2.7Bn cash balance after $330M 2,000 interim dividend payment 1,500 $M $M 1,000 500 0 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Quarterly cashflow from operations Interim dividend Clo
Slide 12: Production and sales
Production and sales Quarter on quarter performance 180,000 160,000 Quarterly spodumene production / shipments (dmt) 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Produced (dmt) Shipped (dmt) 12
Slide 13: Safety and people
Safety and people Great people that go home safe and well every day 4.9 2.03 (target 1.00) 87% Total recordable injury Quality safety interactions2 participation rate annual frequency rate (TRIFR)1 completed per 1,000 hours employee engagement and culture survey 1. Rolling 12-month indicator as at 3
Slide 14: Sustainability
Sustainability Community investment Climate change Indigenous engagement and opportunities Multi-year partnerships with 6MW solar farm Earbus Foundation, Smith energised and supplying Overnight cultural awareness camp for employees with Family and Teach, Learn, Grow power to operation Nyamal communi
Slide 15: Our Strategy
Our Strategy So Pilbara Minerals
Slide 16: To be a leader in the provision of sustainable battery materials
1. Deliver our operating performance commitments To be a leader 2. Achieve the full potential of the Pilgangoora asset in the provision of sustainable battery materials 3. Extract greater value along the battery materials supply chain products 4. Diversify revenue beyond the Pilgangoora asset 16
Slide 17: Bolstered Executive team to deliver our strategy
Bolstered Executive team to deliver our strategy Key executive appointments made during the March Quarter Dale Henderson Alex Eastwood Luke Bortoli Vince De Carolis MANAGING DIRECTOR & CHIEF COMMERCIAL & LEGAL CHIEF FINANCIAL OFFICER CHIEF OPERATING CHIEF EXECUTIVE OFFICER OFFICER OFFICER Sandra McI
Slide 18: Grow
So Pilbara Minerals
Slide 19: Growth pathway to ~1Mtpa
Growth pathway to ~ 1Mtpa Accelerated growth to capture value and increase revenue 1,000 ~1,000 P1000 P1000 Project (FID complete) Expansion 800 FID complete in March Quarter 2023 680 P680 Project 600 – under construction 580 P680 Expansion 400 Commissioning targeting September Quarter 2023 330 Inst
Slide 20: Expansion to increase production by 100ktpa
Expansion to increase production by 100ktpa Construction underway P680 Expansion • Increase production capacity by a further 100,000 tpa spodumene concentrate • First major construction contract awarded to Primero • Commissioning to begin September Quarter 2023, Integrated crushing and ore sorting f
Slide 21: Expansion to increase production to ~1Mtpa
Expansion to increase production to ~ 1Mtpa P1000 FID complete during the March Quarter 2023 P1000 Expansion • Final Investment Decision (FID) made – total investment ~$560M (includes $38M pre-FID investment) • Increase combined production capacity to ~ 1Mtpa spodumene concentrate from both Pilgan a
Slide 22: Value-add
Value-add So Pilbara Minerals
Slide 23: POSCO Pilbara Lithium Solutions
POSCO Pilbara Lithium Solutions 43,000tpa LHM facility under construction at Gwangyang, South Korea in joint venture with POSCO • Procurement and major construction works continue • Commissioning of the first train targeted to commence from Q4 CY2023, with second train Q1 CY2024 Below photos of 43,0
Slide 24: 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 24 24
Slide 25: Mid-stream
Mid-stream Carbon Mid-stream process reduction Project JV with Calix for the Electric Lithium salt ~0% calcination >35% Li2O development of a mid-stream on site waste shipped1 18% lithium metal) product that has the potential to have: • Increased lithium concentration (high value) process • Reduced
Slide 26: Market
So Pilbara Minerals
Slide 27: Lithium pricing – short-term softness
Lithium pricing – short-term softness 1 $90,000 $7,000 $80,000 $6,000 $70,000 $5,000 $60,000 Recent price Spodumene US$/t Hydroxide US/t $50,000 $4,000 decline has been greater $40,000 $3,000 in China vs. $30,000 Asian markets $2,000 $20,000 $1,000 $10,000 $- $- Apr 18 Oct 18 Apr 19 Oct 19 Apr 20 Oc
Slide 28: Lithium deficit
Lithium deficit 7 6 Expected deficit Potential in lithium by 2040 is the Secondary equivalent of 5 Operational 13 - 21 Demand 4 M (LCE) 1 3 Pilgangooras dependent on potential supply coming online 2 1 - 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 Source: Benchmark Mineral Intell
Slide 29: Questions?
Questions? Follow us on pilbaraminerals.com.au ASX: PLS
Pilbara Minerals — Macquarie Australia Conference 2023 on 6ix