Pls Group Limited · ASX:PLS
Pls — Pilbara Minerals — Macquarie Australia Conference 2023
29 slides from Pls's conference presentation, May 2, 2023
Slide 1: Growing a major lithium materials business
Growing a major For personal use only lithium materials business Dale Henderson Managing Director and Chief Executive Officer ASX: PLS Wednesday 3 May 2023 Macquarie Australia Conference, Sydney
Slide 2: Important notices
Important notices This document has been prepared by Pilbara Minerals Limited (“Pilbara” or “Pilbara Minerals” or the “Company”) and is dated Tuesday 2 May 2023. Not an offer of securities This document is provided for informational purposes and does not constitute or contain an offer, invitation, s
Slide 3: Important notices: Forward looking statements
Important notices Forward looking statements Statements contained in this document, including but not limited to those regarding possible or assumed production, sales, future capital and operating costs, projected timeframes, performance, dividends, returns, revenue, exchange rates, potential growth
Slide 4: Important notices: Financial information
Important notices Financial information In order to provide additional insight into the business, certain non-IFRS measures such as “EBITDA”, “underlying profit after tax”, “Cash Balance inclusive of LOC” and “”Net Cash/(Debt)” may be used in this presentation which are unaudited, non-IFRS measures
Slide 5: Pilbara Minerals
Pilbara Minerals ASX 50 I Largest, independently owned, hard-rock lithium company in the world For personal use only Tier 1 ~1Mtpa 1 25+ year 1 asset with strong planned production mine life growth potential capacity 1. Based on combined 6.3Mtpa throughput operations consisting of 1.3Mtpa Ngungaju p
Slide 6: Pilgangoora Project
Pilgangoora Project One of the few major hard-rock lithium producers globally For personal use only Tier 1 asset Two plants with strong growth potential in operation ~580,000 tpa 1 25 + years 2 processing capacity (current) mine life 1. Assumed product grade of SC5.7% 2. Refer to ASX Announcement 29
Slide 7: Amazing growth journey with more to come
Amazing growth journey with more to come Major milestones achieved along the way For personal use only Mid-stream Project with Calix JV finalised Strategic relationship Re-finance - new senior debt facility at POSCO JV finalised formed with POSCO lower cost (CEFC and BNP Paribas) $20M Aus Govt grant
Slide 8: Major lithium materials supplier
Major lithium materials supplier 8% Pilbara Minerals For personal use only 13% Pilbara Minerals Mineral and Brine Mineral Estimated global mined lithium supply by corporate control, Estimated global mineral lithium supply by corporate control, CY23 (mineral & brine, LCE) CY23 (mineral, LCE) Source:
Slide 9: Operate
For personal use only Operate 9
Slide 10: March 2023 quarter results
March 2023 quarter results For personal use only Financial results $1.1Bn $2.7Bn 11 cents per share Spodumene sales receipts Cash balance Fully franked interim dividend - $329.8M Spodumene production and sales results Produced – Shipped – Average Realised Price – 148,131 dmt 144,312 dmt US$4,840/dmt
Slide 11: Rising cash balance – strong production volumes and operating margin
Rising cash balance – strong production volumes and operating margin For personal use only 3,000 2,500 $2.7Bn cash balance after $330M 2,000 interim dividend payment 1,500 $M $M 1,000 500 0 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Quarterly cashflow from operation
Slide 12: Production and sales
Production and sales Quarter on quarter performance 180,000 For personal use only 160,000 Quarterly spodumene production / shipments (dmt) 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Produced (dmt) Shipped (dmt) 12
Slide 13: Safety and people
Safety and people Great people that go home safe and well every day For personal use only 4.9 2.03 (target 1.00) 87% Total recordable injury Quality safety interactions2 participation rate annual frequency rate (TRIFR)1 completed per 1,000 hours employee engagement and culture survey 1. Rolling 12-m
Slide 14: Sustainability
Sustainability For personal use only Community investment Climate change Indigenous engagement and opportunities Multi-year partnerships with 6MW solar farm Earbus Foundation, Smith energised and supplying Overnight cultural awareness camp for employees with Family and Teach, Learn, Grow power to op
Slide 15: Our Strategy
For personal use only Our Strategy
Slide 16: Strategic priorities
For personal use only 1. Deliver our operating performance commitments To be a leader 2. Achieve the full potential of the Pilgangoora asset in the provision of sustainable battery materials 3. Extract greater value along the battery materials supply chain products 4. Diversify revenue beyond the Pi
Slide 17: Bolstered Executive team to deliver our strategy
Bolstered Executive team to deliver our strategy Key executive appointments made during the March Quarter For personal use only Dale Henderson Alex Eastwood Luke Bortoli Vince De Carolis MANAGING DIRECTOR & CHIEF COMMERCIAL & LEGAL CHIEF FINANCIAL OFFICER CHIEF OPERATING CHIEF EXECUTIVE OFFICER OFFI
Slide 18: Grow
For personal use only Grow
Slide 19: Growth pathway to ~1Mtpa
Growth pathway to ~ 1Mtpa Accelerated growth to capture value and increase revenue For personal use only 1,000 ~1,000 P1000 P1000 Project (FID complete) Expansion 800 FID complete in March Quarter 2023 680 P680 Project 600 – under construction 580 P680 Expansion 400 Commissioning targeting September
Slide 20: Expansion to increase production by 100ktpa
Expansion to increase production by 100ktpa Construction underway For personal use only P680 Expansion • Increase production capacity by a further 100,000 tpa spodumene concentrate • First major construction contract awarded to Primero • Commissioning to begin September Quarter 2023, Integrated crus
Slide 21: Expansion to increase production to ~1Mtpa
Expansion to increase production to ~ 1Mtpa P1000 FID complete during the March Quarter 2023 For personal use only P1000 Expansion • Final Investment Decision (FID) made – total investment ~$560M (includes $38M pre-FID investment) • Increase combined production capacity to ~ 1Mtpa spodumene concentr
Slide 22: Value-add
For personal use only Value-add
Slide 23: POSCO Pilbara Lithium Solutions
POSCO Pilbara Lithium Solutions 43,000tpa LHM facility under construction at Gwangyang, South Korea in joint venture with POSCO For personal use only • Procurement and major construction works continue • Commissioning of the first train targeted to commence from Q4 CY2023, with second train Q1 CY202
Slide 24: South Korea – a growing strategic hub
South Korea – a growing strategic hub JV with POSCO places Pilbara Minerals at the forefront of the growing South Korean lithium chemicals and battery manufacturing hub South Korea For personal use only Lithium chemical and battery producers South Korea Car manufacturers 24 24
Slide 25: Mid-stream Project
Mid-stream For personal use only Carbon Mid-stream process reduction Project JV with Calix for the Electric Lithium salt ~0% calcination >35% Li2O development of a mid-stream on site waste shipped1 18% lithium metal) product that has the potential to have: • Increased lithium concentration (high val
Slide 26: Market
For personal use only Market
Slide 27: Lithium pricing – short-term softness
Lithium pricing – short-term softness 1 $90,000 $7,000 For personal use only $80,000 $6,000 $70,000 $5,000 $60,000 Recent price Spodumene US$/t Hydroxide US/t $50,000 $4,000 decline has been greater $40,000 $3,000 in China vs. $30,000 Asian markets $2,000 $20,000 $1,000 $10,000 $- $- Apr 18 Oct 18 A
Slide 28: Lithium deficit
Lithium deficit 7 For personal use only 6 Expected deficit Potential in lithium by 2040 is the Secondary equivalent of 5 Operational 13 - 21 Demand 4 M (LCE) 1 3 Pilgangooras dependent on potential supply coming online 2 1 - 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 Source: Be
Slide 29: Questions?
For personal use only Questions? Follow us on pilbaraminerals.com.au ASX: PLS
Pilbara Minerals — Macquarie Australia Conference 2023 on 6ix