Pls Group Limited · ASX:PLS
Pls — Pilbara Minerals — Investor Presentation (May 2017)
40 slides from Pls's investor presentation, May 15, 2017
Slide 1: Pilgangoora – the world's leading lithium development project
For personal use only Pilgangoora – the world’s leading lithium development project Corporate Presentation – 15 May 2017
Slide 2: Disclaimer and Competent Person's Statement
Disclaimer and Competent Person’s Statement Forward Looking Statement Disclaimer For personal use only • This presentation may contain some references to forecasts, estimates, assumptions and other forward-looking statements. Although the Company believes that its expectations, estimates and forecas
Slide 3: Pilbara Minerals Investment Highlights
Pilbara Minerals Investment Highlights For personal use only Largest Outstanding Rapid pathway Ideally placed to Emerging low- spodumene project to financing and capitalize on cost Australian lithium resource economics concentrate robust market strategic metals and high grade demonstrated production
Slide 4: About Pilbara Minerals
For personal use only About Pilbara Minerals Lithium Market Pilgangoora Project Summary Supplementary Information 4
Slide 5: Pilbara Minerals – overview
Pilbara Minerals – overview ► Pilbara Minerals is an Australian ASX listed company with a market capitalisation of AUD 543m (12 For personal use only May 17) and has a 100% ownership interest in the world-class Pilgangoora Lithium -Tantalum Project (“Project”) ► The Project is located in the Pilbara
Slide 6: Pilgangoora 2Mtpa – project execution underway
Pilgangoora 2Mtpa – project execution underway For personal use only 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 Project Execution – from ► JORC Inferred ► Maiden ore reserve, P
Slide 7: Experienced board of directors and management team
Experienced board of directors and management team For personal use only Tony Kiernan – Non-Executive Chairman ► Highly experienced public company director and former solicitor with over 30 years professional experience ► Currently Chairman and a non-executive director of several ASX-listed resource
Slide 8: Corporate summary
Corporate summary Pilbara Minerals Share price For personal use only Capital Structure (12 May 17) ASX: PLS Shares on issue 1,277 million Top 20 shareholders Approximately 42% Unlisted Options 103 million Cash at 31 March 2017 65.5 million Market capitalisation AUD 543 million @ 42.5¢ Debt Nil Enter
Slide 9: Lithium Market
For personal use only About Pilbara Minerals Lithium Market Pilgangoora Project Summary Supplementary Information 9
Slide 10: Lithium Growth – batteries are the key driver
Lithium Growth batteries are the key driver The way we Generate, Use, Distribute and Store energy is changing. For personal use only Electric Vehicle uptake driving the growth in demand, followed by energy storage. The Lithium-ion Battery is the storage of choice Batteries are the fastest growing se
Slide 11: Lithium raw materials – the key ingredient of the battery supply chain
Lithium raw materials The key ingredient of the battery supply chain ► Lithium raw materials are the vital ingredient for lithium Battery Supply Chain For personal use only battery technology Hard Rock Lithium raw materials ► Lithium is sourced predominantly from: Lithium Carbonate/ Spodumene Mine S
Slide 12: Pilgangoora – a globally significant hard rock lithium resource
Pilgangoora – a globally significant hard rock lithium resource For personal use only PILBARA MINERAL S Note: Tantalum adjusted resource size includes consideration of the revenue of 12 Tantalum by-product. Source: Company Data
Slide 13: Global lithium market
Global lithium market Global lithium demand forecast China – A Lithium Consumption Powerhouse For personal use only ► Broad Central Government policy position towards ‘New Energy’ ► Domestic carbonate pricing took-off coincidentally with acceleration in EVs and Electric Bus sales ► Significant expan
Slide 14: China market overview – 2016 snapshot
China market overview – 2016 snapshot (Lithium Carbonate Equivalent) For personal use only Domestic Production +15kt Imports +85kt ►Spodumene SC6.0 (56kt) LOCAL PRODUCTION: ►Brine (7kt) ► Brine (10kt) Exports +11kt ►Lithium Carbonate (22kt) ► Spodumene (5kt) ►Lithium Carbonate (1kt) +90kt China ►Lit
Slide 15: Lithium ion battery making capacity
Lithium ion battery making capacity For personal use only Battery Costs continue to decline… Tesla battery costs USD/KWh …making electric vehicles more cost competitive than conventional cars over the vehicle life More than USD 20bn of committed investment expected to result in new battery manufactu
Slide 16: Global motor vehicle lithium demand
Global motor vehicle lithium demand ► Tesla Model 3 to be released in 2017, retail price of USD Global EV Builds For personal use only 36,000, 400,000 orders already and growing ► Mercedes Benz releasing twelve new models of EVs in 2017 ► BMW i3 Series due for release 2017 in direct competition with
Slide 17: Global supply of lithium
Global supply of lithium ► The top four producers of global lithium supply Global Lithium Supply Forecast (LCE) For personal use only accounted for ~88% of global production in 2015 ► Lithium sourced from hard-rock operations represented 49% of global supply with 51% from brine operations ► The glob
Slide 18: Ganfeng Lithium – China's largest fully integrated lithium company
Ganfeng Lithium – China’s largest fully integrated lithium company ► Established in 2000 in Jiangxi Province, China, For personal use only Ganfeng Lithium has a capacity of around 35,000tpa of LCE and produces lithium carbonate, lithium hydroxide, lithium metals, butyl lithium, and a number of other
Slide 19: 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 with a market For personal use only capitalisation of USD ~325m ► Completed a RMB 268m (USD 38m) capital raise in December 2016 ► Currently produces 8,000tpa of Lithium Carbonate (LC) & 2,000t
Slide 20: Tantalum
Tantalum ► The primary application of tantalum is its use in capacitors which Forecast tantalum supply and demand For personal use only are common to all electronic devices such as laptops, computers, Mlb Ta2O5 mobile phones, digital cameras, TV’s, medical appliances and automotive components ► Tant
Slide 21: Pilgangoora Project
For personal use only About Pilbara Minerals Lithium Market Pilgangoora Project Summary Supplementary Information 21
Slide 22: Project highlights
Project highlights Outstanding project economics driven by very low cost of operations DFS OUTCOMES, 2Mtpa Process Capacity Base Case For personal use only ► Average annual production of approximately 314ktpa of 6% spodumene concentrate (44ktpa of Lithium Carbonate Equivalent or LCE) and 321,000lbs
Slide 23: Pilgangoora – mining
Pilgangoora – mining A straightforward open pit mining development ► Measured, Indicated and Inferred Resource of 156.3Mt @ 1.25% For personal use only Li2O and 128ppm Ta2O5 containing 1,952,000 tonnes Li2O, and including 44Mlbs Ta2O5 (Mineral Resource Update ASX released dated 25 January 2017) ► Or
Slide 24: Pilgangoora – processing
Pilgangoora – processing Improved Lithia and Tantalite Recovery ► Industry standard processing flowsheet For personal use only ► Spodumene concentrate produced at three mines in Western Australia ► 2-stage heavy media separation ► Gravity separation, tantalite recovery ► Grinding leading to oxide fl
Slide 25: Pilgangoora – mine to ship
Pilgangoora – mine to ship Contracted logistics chain proposed ► Road Transport from mine site to Wedgefield Storage Facility Loading – Rotabox For personal use only ► 127km via Great Northern Highway utilising double road trains ► Product storage at Wedgefield and loaded into shipping containers ►
Slide 26: Operating costs
Operating costs Set to become one of the lowest cost spodumene producers ► DFS LOM average cash operating cost1) of USD Operating Costs – USD (Real) LOM Average For personal use only 207/t concentrate CFR 1,000 ► Contributing factors to the low forecast cash Dec-16 reference price2) operating cost:
Slide 27: Offtake secured
Offtake secured Strong industrial relationships with offtake partners ► 10-year 160,000tpa 6% chemical-grade spodumene concentrate offtake signed with Ganfeng Lithium For personal use only ► Includes a binding equity subscription agreement of USD 20m ► Pricing based on a 6-month pricing mechanism th
Slide 28: Pilgangoora Project – current work streams
Pilgangoora Project – current work streams Site Establishment For personal use only ► Installation of temporary construction offices and communications ► Road access and rail crossing upgrades Processing Plant ► Process Plant EPC Contract (Stage 1 FEED AUD 29.3m) awarded to RCR Tomlinson. Target con
Slide 29: A rapid pathway to financing, development and production
A rapid pathway to financing, development and production For personal use only 29
Slide 30: Pilbara Minerals Investment Highlights
Pilbara Minerals Investment Highlights ► Outstanding Lithium / Tantalum development project in the Pilbara region at Pilgangoora with scale, low-cost, adjacent to For personal use only existing infrastructure and proven high quality products Globally significant ► During 2016 the exploration program
Slide 31: Supplementary Information
For personal use only About Pilbara Minerals Lithium Market Pilgangoora Project Summary Supplementary Information 31
Slide 32: Board of Directors
Board of Directors For personal use only Highly experienced company director and former solicitor with over 30 years professional Non-Executive Tony Kiernan experience. Currently Chairman and a non-executive director of several ASX-listed resource Chairman companies Mining Engineer with over 22 year
Slide 33: Management Team
Management Team Chief Financial Chartered Accountant with more than 25 years’ experience in the Australian resources sector. Prior to joining Pilbara Minerals, Mr Lynn served as the Chief For personal use only Brian Lynn Officer Financial Officer at Atlas Iron Limited and spent 12 years as the Chief
Slide 34: Resources & Reserves
Resources & Reserves JORC Mineral Resources: 25th January 2017 For personal use only Category Tonnage Li2O (%) Ta2O5 Fe2O3 (%) Li2O (T) Ta2O5 (Mt) (ppm) (Mlbs) Measured 17.6 1.39 151 0.44 244,000 5.9 Indicated 77.7 1.31 125 0.58 1,017,000 21.5 Inferred 61.1 1.13 125 0.71 691,000 16.8 Total 156.3 1.2
Slide 35: 4Mtpa Expansion Option – Pre-Feasibility Study Complete
4Mtpa Expansion Option – Pre-Feasibility Study (“PFS”) Complete Outstanding economic returns ► Modest incremental capital to expand to 4Mtpa, AUD 128m For personal use only ► LOM average annual production of approximately 564ktpa of 6% spodumene concentrates inclusive of technical grade product (75k
Slide 36: The Pilbara region of Western Australia
The Pilbara region of Western Australia A Tier-1 mining jurisdiction ► The Pilbara region of Western Australia is a globally Pilbara – Major Resources Operations/Projects For personal use only significant mining and energy region and has been the Projects operating or under powerhouse of economic gr
Slide 37: Project management overview
Project management overview ► Pilbara Minerals has appointed the engineering and Project Management Structure For personal use only consulting firm Engenium as their project management consultant (“PMC”) and has integrated their team into the Company’s organization for the duration of the constructi
Slide 38: Offtake with Ganfeng Lithium – summary of terms
Offtake with Ganfeng Lithium – summary of terms Provision: Comment For personal use only Term The initial supply term is 10 years and Ganfeng Lithium may elect to extend the term for 5 years and a further 5 years Product 160ktpa of 6% chemical-grade spodumene concentrate • Completion of the USD 20 m
Slide 39: Offtake with General Lithium – summary of terms
Offtake with General Lithium – summary of terms Provision: Comment For personal use only Term The initial supply term is 6 years and General Lithium may elect to extend the term for a further 4 years Product 140ktpa of 6% chemical-grade spodumene concentrate • General Lithium equity subscription of
Slide 40: For personal use only
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