Pls Group Limited · ASX:PLS
Pls — Pilbara Minerals — Shareholder Meeting (November 2016)
28 slides from Pls's shareholder meeting presentation, Nov 24, 2016
Slide 1: Pilgangoora Lithium-Tantalum Project
For personal use only Pilgangoora Lithium-Tantalum Project ASX: PLS The world’s leading lithium development project Pilbara Minerals Annual General Meeting, November 2016
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: Developing a World-Class, Long-Life Lithium Mining Centre
Developing a World-Class, Long-Life 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 DFS dem
Slide 4: Lithium Ion Battery Technology
Lithium Ion Battery Technology For personal use only Source: Bloomberg New Energy Finance, April 2016 Li-Ion battery technology facilitates mass mobile electrification, including e-transport, as costs inevitably fall 4
Slide 5: China Market Overview – 2015 Snapshot (LCE)
China Market Overview – 2015 Snapshot (LCE) For personal use only Domestic Imports +72kt Production +10kt Exports -12kt • Spodumene (55kt) * Local Production: •Lithium Carbonate (2kt) • Brine (6kt) • Brine (6kt) •Lithium Hydroxide (10kt) • Lithium Carbonate (11kt) • Spodumene (5kt) LC +70kt Brine 13
Slide 6: Lithium Ion Battery Making Capacity
Lithium Ion Battery Making Capacity For personal use only Major lithium ion battery installations globally, dominated by growth in China 6
Slide 7: China – A Lithium Consumption Powerhouse
China – A Lithium Consumption Powerhouse For personal use only ► Broad Central Government policy position towards ‘New Energy’ ► Domestic lithium carbonate pricing took-off coincidentally with acceleration in Electric Vehicles (EV), Electric Bus sales ► Significant expansion through entire lithium-i
Slide 8: Pricing, Outlook
Pricing, Outlook ►Forecast price deck derived from basket of Price forecast – Battery-grade Lithium Carbonate For personal use only independent economic and bank/broker models ► China domestic pricing, import pricing and spodumene import pricing models ►Expectation that Chinese domestic battery grad
Slide 9: Global Lithium Markets Surging Demand – Tight Supply
Global Lithium Markets Surging Demand – Tight Supply ► Pilgangoora spodumene concentrates meet the For personal use only metallurgical specifications of the entire range of lithium products ► Cornerstone off-take agreement with General Lithium ► Over 100% of projected lithium oxide production subjec
Slide 10: Pilbara Minerals – Overview
Pilbara Minerals – Overview ► 100% ownership of the world-class Pilgangoora Lithium-Tantalum Project in WA’s For personal use only Pilbara region ► Significant lithium-tantalum ore reserve, with major exploration upside ► Second largest spodumene-tantalite resource in the world ► DFS confirms techni
Slide 11: Pilgangoora – Mining
Pilgangoora – Mining A straightforward open pit mining proposition ► Measured, Indicated and Inferred Resource of 128.6Mt @ For personal use only 1.22% Li2O and 138ppm Ta2O5 containing 1,572,000 tonnes Li2O, and including 39Mlbs Ta2O5 ► Updated Ore Reserve of 69.8Mt @ 1.26% Li2O and 132ppm Ta2O5 ► C
Slide 12: Pilgangoora – Processing
Pilgangoora – Processing Improved Lithia and Tantalite Recovery ► 2-stage heavy media separation For personal use only ► Gravity separation, tantalite recovery ► Improved Tantalite recovery, concentrate grade and pricing outcomes ► Grinding leading to oxide flotation ► Low/High intensity magnetic se
Slide 13: Pilgangoora – A Globally Significant Lithium Resource
Pilgangoora – A Globally Significant Lithium Resource Talison Lithium For personal use only Greenbushes Pilbara Minerals Ltd Nemaska Exploration Exploration Target Whabouchi - Canada (2016, 130-150Mt) MIN / NeoMetals Mt Marion RB Energy Ltd Quebec - Canada Altura Mining Ltd Galaxy Resources Pilgango
Slide 14: Project Highlights
Project Highlights Outstanding project economics driven by very low cost of operations DFS OUTCOMES, 2Mtpa Process Capacity Base Case (ASX release 20 September 2016) For personal use only ► Average annual production of approximately 314ktpa of 6% spodumene concentrates (44ktpa of Lithium Carbonate E
Slide 15: 4Mtpa Expansion Option – PFS Complete
4Mtpa Expansion Option – PFS Complete Outstanding economic returns ► Modest incremental capital to expand to 4Mtpa, A$128M For personal use only ► LOM Average annual production of approximately 564ktpa of 6% spodumene concentrates inclusive of technical grade product (75ktpa LCE); 579,000lbs of tant
Slide 16: Pilgangoora 2Mtpa DFS Complete
Pilgangoora 2Mtpa DFS Complete Progressing to project execution 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 Finance / Permitting – ► JORC Inferred ► Maiden
Slide 17: Project Status Update
Project Status Update ►DFS completed September 2016 For personal use only ►Integrated Project Management Consultant (PMC) Engenium fully mobilised into corporate office; ►Early Contractor Involvement (ECI) largely completed with target award mid December 2016 ►Schedule critical long lead procurement
Slide 18: A Rapid Pathway to Financing, Development and Production
A Rapid Pathway to Financing, Development and Production For personal use only PILGANGOORA PROJECT DELIVERY SCHEDULE 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 J F M A M J J A S O N D J F M A M J J A S O N D J F M DFS FUNDING REGULATORY APPROVALS MINING CONTRACTOR MINING CONTRACTOR MINING CONTRACTOR
Slide 19: Board of Directors
Board of Directors For personal use only Tony Kiernan Steve Scudamore Robert G Adamson Neil Biddle Ken Brinsden John Young Non-Executive Non-Executive Non-Executive Non-Executive Director MD and CEO Technical Director Chairman Director Director Highly experienced Highly experienced Geologist with ov
Slide 20: Summary
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 high grade economics financing and market outlook and metals relative to ASX- demonstrated productio
Slide 21: Additional Information
Additional Information For personal use only Developing a globally significant new Australian lithium business 21
Slide 22: Corporate Summary
Corporate Summary Pilbara Minerals Share price – as at 23 November, 2016 For personal use only Capital Structure ASX: PLS Shares on issue 1259.5 million Top 20 shareholders Approximately 40% Unlisted Options 109.1 million Cash at 30 September 2016 $94 million Market capitalisation $661.2 million @ 5
Slide 23: General Lithium – a major producer of lithium chemicals in China
General Lithium – a major producer of lithium chemicals in China For personal use only ► Listed on NEEQ, Beijing, Code No: 837358 ► Currently produces 8,000tpa of Lithium Carbonate (LC) & 2,000tpa of High Purity LC 4N (99.99%) ► Soon to commission 5,000tpa of Lithium Iron Phosphate (LFP), Li battery
Slide 24: Lithium Raw Materials – Battery Supply Chain
Lithium Raw Materials – Battery Supply Chain Future Value Added Products For personal use only Pilbara and General Lithium Spodumene Lithium Upgraders Cathode & Battery E Transport Mine Carbonate/Hydroxide & Component Electrolyte Producer Producer Grid Storage Mixers Producers & Grid Stabilisation D
Slide 25: Downstream Chemical Processing
Downstream Chemical Processing For personal use only ► Strategy is to develop partnerships with key lithium chemicals industry participants ► Access to technology, operating expertise and intellectual property ► Shortcut to Pilbara’s participation in downstream lithium chemicals market, supporting t
Slide 26: Resources & Reserves
Resources & Reserves Resources: For personal use only Category Tonnage Li2O (%) Ta2O5 (ppm) Fe2O3 (%) Li2O (T) Ta2O5 (Mlbs) (Mt) Measured 18.0 1.36 150 0.45 245,000 5.9 Indicated 65.6 1.24 131 0.61 812,000 19.0 Inferred 45.0 1.15 144 0.73 515,000 14.2 Total 128.6 1.22 138 0.63 1,572,000 39.2 Reserve
Slide 27: Global Motor Vehicle Lithium Demand
Global Motor Vehicle Lithium Demand For personal use only ► Tesla Model 3 to be released in ► China, Japan and Korean Government 2017, retail price of US$36,000, policy strongly supports EVs with large 400,000 orders already and growing rebates, zero sales tax and free licensing ► Mercedes Benz rele
Slide 28: Pilgangoora Lithium-Tantalum Project
For personal use only Pilgangoora Lithium-Tantalum Project Developing a globally significant new Australian lithium project
Pilbara Minerals — Shareholder Meeting (November 2016) on 6ix