Pls Group Limited · ASX:PLS
Pls — Pilbara Minerals — Resources Rising Stars Gold Coast Conference 2016
30 slides from Pls's conference presentation, May 25, 2016
Slide 1: Presentation to Resources Rising Stars Gold Coast Conference 2016
ABN 95 112 425 788 For personal use only 25 May 2016 ASX Announcements Platform Bridge Street Sydney NSW 2000 Presentation to Resources Rising Stars Gold Coast Conference- 2016 Please find enclosed a copy of the presentation being made by Pilbara Minerals’ Exploration Manager Mr John Holmes at the R
Slide 2: Pilgangoora Lithium-Tantalite Project
For personal use only Pilgangoora Lithium-Tantalite Project The world’s leading lithium development project Resources Rising Stars, May 2016 – John Holmes, Exploration Manager 1
Slide 3: Disclaimer and Competent Person's Statement
Disclaimer and Competent Person’s Statement For personal use only 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 on re
Slide 4: Pilbara Minerals Overview
Pilbara Minerals Overview For personal use only ► 100% ownership of the world-class Pilgangoora Lithium-Tantalite Project in WA’s Pilbara region ► World-class lithium-tantalum reserve with significant upside ► Second largest spodumene-tantalite resource in the world ► Recently completed PFS confirms
Slide 5: Corporate Summary
Corporate Summary For personal use only Capital Structure ASX: PLS Shares on issue 1,021 million Top 20 shareholders 37% Convertible notes (proforma) Nil Board & Management 8% Unlisted Options 70.9 million Cash at 01/05/2016 $60 million Market capitalisation $660 million @ 65¢ 3 month average daily
Slide 6: Developing a World-Class Lithium Mining Centre
Developing a World-Class Lithium Mining Centre For personal use only ►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 PFS demonstrates e
Slide 7: PFS Highlights
PFS Highlights Technically and financially robust long-life project For personal use only ► 2Mtpa mining and on-site processing ► Forecast annual production of approximately 330ktpa of 6% spodumene concentrates (48ktpa of Lithium Carbonate Equivalent or LCE) and 274,000lbs pa of tantalite ► Maiden O
Slide 8: Pilgangoora – Mining
Pilgangoora – Mining A straight forward open pit mining proposition For personal use only ►Conventional open pit mining proposed, 100-tonne mining fleet ►2Mt ore feed per annum ►LOM strip ratio of 3.5:1, waste: ore tonnes ►Strip ratio over first 5 years 2.87: 1 ►Both owner-mining and contractor mini
Slide 9: PFS underscores robust base case however further growth to come
PFS underscores robust base case however further growth to come For personal use only ► Robust PFS: >50% EBITDA margins & 44% IRR based on: ► average spodumene price of US$456/t FOB ► 29.5mt reserve for mine life of 15 years (at 2mtpa) ► We see significant upside potential in several areas: ► Curren
Slide 10: Pilgangoora – a strategic and globally significant discovery
Pilgangoora – a strategic and globally significant discovery For personal use only Exploration Target* of 130-150 Mt @ 1.2-1.5% Li2O and 175-225ppm Ta2O5 9
Slide 11: Exploration Drilling Q1 Q2 2016
Exploration Drilling Q1 Q2 2016 6 drilling rigs currently on-site For personal use only 10
Slide 12: Exploration Drilling – 2016
Exploration Drilling – 2016 Exploration success leads to expanded drilling program For personal use only ► First phase of the 2016 exploration and resource development drilling completed ahead of schedule: ► 15,000m RC and diamond drilling program designed to in- fill, upgrade and expand current glo
Slide 13: Cross Section 7670300mN
Cross Section 7670300mN Extensional drilling returns thick intersections of pegmatite For personal use only 12
Slide 14: Resource Growth
Resource Growth Exploration Target is 130-150Mt @ 1.2-1.5% Li2O For personal use only 13
Slide 15: Peer Comparison Tonnage and Grade
Peer Comparison Tonnage and Grade For personal use only Talison Lithium Greenbushes Pilbara Minerals Ltd NeoMetals Mt Marion Nemaska Exploration Exploration Target Whabouchi - Canada (2016) RB Energy Ltd Quebec - Canada Altura Mining Ltd Galaxy Resources Pilgangoora Mt Caitlin Pilbara Minerals Ltd P
Slide 16: Pilgangoora DFS Underway
Pilgangoora DFS Underway For personal use only Stage 1 Stage 2 Stage 3 Stage 4 Resource PFS DFS Project Growth Complete Underway Delivery Resource Estimation Project Definition Detailed Design and Finance / Permitting – ► JORC Inferred ► Maiden reserve, Project Planning December 2016 /Indicated comp
Slide 17: DFS Stage
DFS Stage 3 Significant progress on all the major components of the Definitive Feasibility Study For personal use only ► Metallurgy: HMS, HPGR, and Flotation test-work operating parameters to produce technical and chemical concentrates completed ► Pilot Plant: Program underway to provide final valid
Slide 18: Global Lithium Markets
Global Lithium Markets Surging Demand – Tight Supply For personal use only ► Pilgangoora spodumene concentrates meet the metallurgical specifications of the entire range of lithium products ► Over 100% of projected lithium oxide production subject to MOU’s with major off-take partners in China, Japa
Slide 19: Strong Demand Outlook
Strong Demand Outlook For personal use only World forecast demand for Lithium by first use (t LCE) ►Lithium-ion batteries driving demand ► 20%+ annual growth since 2000 ► Currently 30% of global market ►Electric Vehicles and E-Bikes ► Currently 3% of global lithium market ► Accelerated growth expect
Slide 20: Motor Vehicle Lithium Demand
Motor Vehicle Lithium Demand For personal use only ► Tesla Series 3 to be released in 2017, ► China, Japan and Korean Government retail price of US$36,000, 400,000 policy strongly supports EV’s with large orders already rebates, zero sales tax and free ► Chinese car manufacturers targeting sub licen
Slide 21: Summary: Key investment takeaways
Summary Key investment takeaways For personal use only Emerging low- Largest lithium Outstanding Ideally placed to cost Australian resource and project Rapid pathway to capitalize on robust strategic highest grade economics financing and market outlook and metals relative to ASX- demonstrated produc
Slide 22: Pilgangoora Lithium-Tantalite Project
For personal use only Pilgangoora Lithium-Tantalite Project The world’s leading lithium development project Resources Rising Stars, May 2016 – John Holmes, Exploration Manager 21
Slide 23: Additional Information
Additional Information For personal use only Developing a globally significant new Australian lithium project 22
Slide 24: Board of Directors
Board of Directors For personal use only Tony Leibowitz Ken Brinsden Neil Biddle John Young Robert G Adamson Chairman MD and CEO Executive Director Technical Director Non-Executive Mining Engineer with Geologist and Director Fellow of The over 20 years Corporate Member of Geologist and Geologist wit
Slide 25: Pilgangoora – Mining
Pilgangoora – Mining A straightforward open pit mining proposition For personal use only ►Conventional open pit mining proposed, 100-tonne mining fleet ►2Mt ore feed per annum ►LOM strip ratio of 3.5:1, waste: ore tonnes ►Strip ratio over first 5 years 2.87: 1 ►Both owner-mining and contractor minin
Slide 26: Pilgangoora – Processing
Pilgangoora – Processing 2Mtpa ore feed with flowsheet to produce 3 product streams For personal use only 25
Slide 27: A Rapid Pathway to Financing and Development
A Rapid Pathway to Financing and Development For personal use only 26
Slide 28: Market Outlook
Market Outlook For personal use only Price forecasts – Chemical-grade spodumene ►Conservative pricing based on Roskill forecast data ► Latest public contract price +USD$600/t CFR ► Indicative of very tight supply ►Very strong leverage within the project to improved pricing outcomes. USD$600/t (FOB)
Slide 29: Pilgangoora Project Resource and Reserve Tables
Pilgangoora Project Resource and Reserve Tables For personal use only Pilgangoora Resource Category Tonnage (Mt) Ta2O5 (ppm) Li2O (%) Ta2O5 (T) Ta2O5 (Mlbs) Li2O (T) Table Ta2O5 17.9 182 3,255 7.2 Indicated Li2O 35.7 1.31 469,400 Ta2O5 24.3 205 4,995 11.02 Inferred Li2O 44.5 1.21 538,600 Ta2O5 42.39
Slide 30: Pilgangoora Lithium-Tantalite Project
For personal use only Pilgangoora Lithium-Tantalite Project The world’s leading lithium development project Resources Rising Stars, May 2016 – John Holmes, Exploration Manager 29
Pilbara Minerals — Resources Rising Stars Gold Coast Conference 2016 on 6ix