Pls Group Limited · ASX:PLS
Pls — Pilbara Minerals — Battery Metals Asia Conference 2019
33 slides from Pls's conference presentation, Jan 17, 2019
Slide 1: Pilgangoora: a world class lithium and tantalum production centre
Pilgangoora: a world class lithium For personal use only and tantalum production centre Dale Henderson – Chief Operating Officer Battery Metals Asia Conference, Shanghai, China 17-18 January 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 17/01/2019. This document is provided for informational purposes and does not constitute or contain an offer, invitation, so
Slide 3: Important Notices and Competent Persons Statement
Important Notices and Competent Persons Statement Not Financial Product Advice This document does not constitute financial product advice or take into account your investment objectives, taxation situation, financial situation or needs. This document consists purely of factual information and does n
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 $1.2B) • 23 year mine life • Established transport and port infrastructure • Stage 1, 2Mtpa processing plant • LOM Stage 1 pro
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 Production Stage 2 expansion- PFS, DFS, design DFS and FID / resource Project execution and product and engineering
Slide 6: Exceptional growth opportunity
Exceptional growth opportunity A clear expansion pathway to meet customer growth requirements 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: Strong production STATUS: Financing completion STATUS: Evalua
Slide 7: Production – strong ramp-up
Production – strong ramp-up Process plant throughput performance continues to exceed expectations during production ramp-up, achieving consistent run rate of 270tph For personal use only Spodumene concentrate production (dmt) 30,000 70,000 60,000 50,000 20,000 40,000 30,000 10,000 20,000 • A total o
Slide 8: Product quality – consistently high
Product quality – consistently high Processing plant delivers high quality product during commissioning and now production ramp-up For personal use only • Consistent high quality product grades achieved. Average grade (six lots across four shipments): • 6.11% Li20 • 1.27% Fe • Independent test certi
Slide 9: Recovery – continued improvement
Recovery – continued improvement Lithia recovery continues to improve during processing plant ramp-up to name-plate capacity For personal use only • Continued improvement in lithia recovery • Additional capital optimisations to improve water quality management Lithia recovery, actual vs design (% li
Slide 10: Stage 2, 5Mtpa expansion
Stage 2, 5Mtpa Aerial photograph w/- Stage 2 3D model overlay expansion DFS results and offtake partner confidence For personal use only support major project expansion • Additional 3Mtpa processing circuit to increase processing capacity to 5Mtpa • Average annual production of approximately 800-850
Slide 11: Financing Stage 2, 5Mtpa
Financing Stage 2, 5Mtpa Customer financing underpins funding package for $231M expansion For personal use only • US$25 million pre-payment from Great Wall Motor Company • A$50 million equity placement to Ganfeng Lithium • Proposed new US$50 million (~A$70.9 million) Nordic Bond to be issued in acco
Slide 12: 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 * * * 12 *Potential PLS JV partners
Slide 13: Future lithium raw material supply
13 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 14: Pilgangoora - a new hard rock lithium supply to feed the growing Korean market
Pilgangoora - a new hard rock lithium supply to feed the growing 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 240- 600ktpa 315ktpa 150 285 100 185 50 40 0 2017 2023 2028 Source: Benchma
Slide 15: Proposed Pilbara Minerals - POSCO JV
Proposed Pilbara Minerals - POSCO JV Future participation in the rapidly developing Korean lithium ion battery market proposed through a jointly owned lithium chemicals plant For personal use only • Spodumene sales into the Korean market • Proposed 30% JV in chemical conversion facility in South Kor
Slide 16: Global lithium chemicals pricing
Global lithium chemicals pricing Lithium carbonate ex-works domestic China Lithium hydroxide ex-works China Source: FastMarkets MB For personal use only China domestic pricing in 2018 Lithium carbonate cif China, Japan and Korea Lithium hydroxide cif China, Japan and Korea impacted by; - Central Gov
Slide 17: Pilgangoora Project - incredible project mineral endowment
Pilgangoora Project - incredible project mineral endowment Many areas at Pilgangoora remain under-explored and as such are important targets to support future resource growth. For personal use only Million Grade Grade The new Exploration Target*, which is in addition to the current Target Area JORC
Slide 18: 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 to achieve name-plate capacity, including design plant ut
Slide 19: What sets us apart?
What sets us apart? A low cost, long life and high quality operation makes Pilgangoora one of the best lithium raw material projects in the world For personal use only - High grade lithium resources Low cost - Valuable tantalum bi-product - Significant project size and processing capacity - Stage 2,
Slide 20: pilbaraminerals.com.au
For personal use only ASX: PLS pilbaraminerals.com.au
Slide 21: Additional Information
For personal use only Additional Information 21
Slide 22: Corporate overview
Corporate overview Capital structure ASX: PLS Current share price1 A$0.695 For personal use only Shares on issue 1,745 million Options on issue 60 million Market capitalisation1 A$1.21 billion Cash at bank2 A$90.6M Top 20 shareholders3 36% 3 month average daily volume4 ~8.5M shares 1 As at 16 Januar
Slide 23: Experienced board of directors
Experienced board of directors For personal use only Tony Kiernan 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 25 y
Slide 24: 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 25: 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 26: Pilgangoora – a globally significant hard rock lithium resource
Pilgangoora – a globally significant hard rock lithium resource For personal use only 26
Slide 27: Strong offtake partners committed to Stage and 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 28: Offtake for 100% of stage and of Pilgangoora
Offtake for 100% of stage 1 and 2 of Pilgangoora Pilbara Mining Minerals For personal use only (SC 6.0) Stage 1 Stage 1 = ≈43Ktpa LCE Stage 2 Spodumene 300kt-350ktpa 500kt-550ktpa Production Stage 1+2 = >110ktpa LCE 2018 2020 General Ganfeng Ganfeng Lithium Great Wall POSCO Spodumene Lithium Motors
Slide 29: Proposed joint venture with POSCO
Proposed 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 EV Pilbara Minerals POSCO manufacturers • Expands access to the battery industry and PosLX JV Zhe
Slide 30: 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 31: Pilgangoora project overview
Pilgangoora project overview For personal use only Processing plant Spodumene storage Central pit Mining 31
Slide 32: First spodumene concentrate shipment
First spodumene concentrate shipment For personal use only 32
Slide 33: Pilgangoora processing plant
Pilgangoora processing plant For personal use only 33
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