Pls Group Limited · ASX:PLS
Pls — Pilbara Minerals — CITIC CLSA Investor Forum 2023
44 slides from Pls's conference presentation, Sep 11, 2023
Slide 1: Growing a major lithium materials business
Powering a sustainable energy future For personal use only Growing a major lithium materials business Dale Henderson Managing Director & CEO CITIC CLSA Investor Forum 11 September 2023 ASX:PLS
Slide 2: Pilbara Minerals
Pilbara Minerals ASX 50 - Largest, independently For personal use only owned, hard-rock lithium company in the world Spodumene concentrate 620,147t produced FY23 Market capitalisation $14.0B 1 Cash balance 2 $3.3B 1 As at 7 September 2023 2 As at 30 June 2023 2
Slide 3: Pilgangoora Operation
Pilgangoora Operation For personal use only 214Mt Tier 1 asset at 1.2% Li2O Ore Reserve with strong growth potential 35% ore reserve increase FY232 +70% increase in production capacity under construction3 ~34 year Two plants mine life1 in operation 1 The ~34 year life of mine and ore mined reference
Slide 4: Delivering our strategy
Delivering our strategy For personal use only Operate Deliver our operating performance commitments To be a leader Grow Achieve the full potential of the Pilgangoora asset in the provision of sustainable battery materials Chemicals Extract greater value along the battery materials supply chain produ
Slide 5: Pilbara Minerals - our journey
For personal use only Pilbara Minerals - our journey 5
Slide 6: Spodumene concentrate pricing history
Spodumene concentrate pricing history $90,000 $9,000 For personal use only Fastmarkets BG Hydroxide CIF Asia (US$/t) $80,000 Fastmarkets BG Hydroxide EXW China (US$/t incl. VAT) $8,000 Fastmarkets Spot 6% Spodumene Concentrate (CIF China) $70,000 $7,000 $60,000 $6,000 Hydroxide US/t Spodumene US/t $
Slide 7: It all begins with a hole in the ground
It all begins with a hole in the ground For personal use only 7
Slide 8: Commencing process plant earthworks
Commencing process plant earthworks For personal use only 8
Slide 9: Process plant foundations
Process plant foundations For personal use only 9
Slide 10: Process plant steel erected
Process plant steel erected For personal use only 10
Slide 11: Process plant commissioned
Process plant commissioned For personal use only 11
Slide 12: First blast at the Central pit
First blast at the Central pit For personal use only 12
Slide 13: Mining underway
For personal use only Mining underway 13
Slide 14: Central pit today
For personal use only Central pit today 14
Slide 15: First shipment October 2018
First shipment October 2018 For personal use only 15
Slide 16: Optimisation – the early days
Optimisation – the early days For personal use only Source: ASX announcement titled “Pilgangoora – positioned for the future of lithium raw material supply” on 7 May 2020 16
Slide 17: Altura acquisition…
Altura acquisition… For personal use only 17
Slide 18: …and value add
For personal use only …and value add 18
Slide 19: Amazing growth journey with more to come
Amazing growth journey with more to come For personal use only Other major milestones achieved along the way 2017 2018 2019 2020 2021 2022 Initial US$100M Strategic relationship Commercial Re-finance – Altura acquisition POSCO JV Nordic Bond, formed with POSCO production at new senior debt finalised
Slide 20: Pilbara Minerals – FY23
For personal use only Pilbara Minerals – FY23 20
Slide 21: FY23 - A transformational year
FY23 - A transformational year For personal use only Major milestones achieved in the 2023 financial year Q1 Q2 Q3 Q4 Accelerated growth $250M Aus Govt and new P680 construction Record quarter for mandate endorsed by Board US$113M financing facilities contract awarded production and sales Capital Ma
Slide 22: FY23 operational highlights
FY23 operational highlights For personal use only Production Sales Price Expansion Chemicals Growth 64% 68% 87% P680 P1000 POSCO JV plant progressed 35% increase in increase in shipping increase in realised expansion increase to Ore production volume volume price projects Reserves 620.1 kt 607.5 kt
Slide 23: FY23 financial highlights
FY23 financial highlights For personal use only Revenue Cash EBITDA Profit Dividend Fully franked 242% 464% 307% 326% final dividend determined of increase Group increase in Cash increase in Group increase in Revenue to $4.1B Balance to $3.3B EBITDA to $3.3B Statutory Profit after Tax to 14cps full
Slide 24: A major lithium materials supplier
A major lithium materials supplier For personal use only Hard rock and brine 8% Hard rock 13% Pilbara Minerals Estimated global Pilbara Minerals Estimated global mined lithium supply by mineral lithium corporate control, CY23 supply by corporate (lithium carbonate control, CY23 equivalent (LCE)) (mi
Slide 25: Delivering shareholder returns
Delivering shareholder returns For personal use only Interim Final Total 118% increase in FY23 dividend FY23 dividend FY23 dividend share price over FY23 $4.89 11 14 25 cents cents cents per share per share per share fully franked fully franked in dollar terms in dollar terms Totaling ~$750M, $2.24
Slide 26: Pilgangoora Operations Minerals
Pilgangoora Operations Minerals
Slide 27: Pilbara Minerals - future
For personal use only Pilbara Minerals - future 27
Slide 28: Spodumene concentrate production
Spodumene concentrate production Rapid production growth continuing with construction underway For personal use only >10002 Approximately 2 70% increase in production capacity 6801 over the coming 2 years 620 Future expansion potential subject to successful Production Expanded nameplate capacity FID
Slide 29: Expansions underway to increase production
Expansions underway to increase production P680 P1000 For personal use only under construction long lead equipment ordered Pilgan Plant schematic – Pilgan Plant schematic primary rejection 3D design model i) existing plant infrastructure in dark grey (existing plant infrastructure in greyscale) ii)
Slide 30: Global spodumene production capacity
Global spodumene production capacity Spodumene production capacity vs peers1 For personal use only Post ramp up of the P1000 expansion, Pilgangoora is expected to be the second largest producing hard rock 1,000 lithium mine in the world, Spodumene concentrate capacity (ktpa) with installed productio
Slide 31: Chemicals
Chemicals Strategically positioned to capture value across the lithium supply chain For personal use only Upstream Mid-Stream Downstream Spodumene concentrate Lithium enriched product Lithium hydroxide ~5.3% >35% >99% purity lithia content1 lithia content2 battery grade3 1. Average grade of spodumen
Slide 32: Mid-Stream to target reduced carbon intensity
Mid-Stream to target reduced carbon intensity For personal use only • R&D demonstration plant with Calix to demonstrate electric kiln technology • 80% potential calcination emission intensity reduction1 via electric calcination • Potential higher value adding at the resource • FID achieved – constru
Slide 33: Downstream chemicals facility with POSCO
Downstream chemicals facility with POSCO For personal use only Up to 30% equity participation in a 43,000 tpa lithium hydroxide facility in Gwangyang, South Korea in joint venture with POSCO 33
Slide 34: 35% increase in Pilgangoora Ore Reserve
35% increase in Pilgangoora Ore Reserve For personal use only • Pilgangoora Ore Reserve increased by 55 Mt to 214 Mt following FY23 drill program and Mineral Resource update1 • Extends Pilgangoora Operations’ mine life by ~9 years to ~34 years2 • Study commenced to explore potential further expansio
Slide 35: Globally significant lithium resource
Globally significant lithium resource Global hard-rock lithium project landscape (bubble size represents Resource Lithium Carbonate Equivalent (LCE))1 For personal use only 2.0% 1.8% Greenbushes 1.6% 1.4% Li2O grade (%) 1.2% Pilgangoora Pilgangoora (30 June 2022) (7 August 2023) Development 1.0% Wod
Slide 36: Strategic partnering process
Strategic partnering process Opportunity to access lithium raw For personal use only materials from a world-class deposit Partnership opportunity with Pilbara Minerals on downstream lithium conversion facility in a mutually agreed location Long-term lithium supply up to 300,000 tpa spodumene concent
Slide 37: Long term demand driven by PEV and ESS
7 Long term demand driven by PEV and ESS For personal use only 6 Expected deficit in lithium by 2040 is the equivalent of 5 12–20 Pilgangooras 1 dependent on potential 4 supply coming online (LCE Mt) Operational Secondary 3 Potential Demand 2 1 Source: Benchmark Mineral Intelligence 2022. June Quart
Slide 38: Questions
For personal use only Questions 38
Slide 39: Contact
For personal use only CONTACT Investor Relations James Fuller Manager Investor Relations T: +61 (0) 488 093 763 James.Fuller@pilbaraminerals.com.au Media Michael Vaughan Fivemark Partners T: +61 (0) 422 602 720 Follow us on 39
Slide 40: Appendix
For personal use only Appendix Important notices and other supporting information 40
Slide 41: Important notices
Important notices This document has been prepared by Pilbara Minerals Limited (“Pilbara” or “Pilbara Minerals” or the “Company”) and is dated 11 Reporting of Mineral Resources and Ore Reserves September 2023. For personal use only Recipients of this presentation outside Australia should note that it
Slide 42: Important notices
Important notices Important Information regarding Mineral Resources, Ore Reserves and P680 and P1000 Projects Past performance For personal use only Information in this presentation regarding expansions in nameplate capacity of the Pilgan Plant in respect of the P680 and P1000 projects Statements ab
Slide 43: Supporting data: Hard-rock Mineral Resources
Supporting data: Hard-rock Mineral Resources (slide 35) Resource Contained Contained Announcement Total Company1 Project name Stage Location Announcement title grade Li2O LCE For personal use only date (Mt) (% Li2O) (Mt) (Mt)2 1 Pilbara Minerals Pilgangoora Production Australia Substantial Increase
Slide 44: Pilgangoora Mineral Resources and Ore Reserves
Pilgangoora Mineral Resources and Ore Reserves (slide 34) For personal use only Notes Category Tonnes Li2O Ta2O5 Fe2O3 Li2O Ta2O5 1. Totals may not add up due to rounding. 2. All Open-pit Ore Tonnes are defined using the weighted average cost and recovery of the (Mt) (%) (ppm) (%) (Mt) (M lb) Pilgan