Pls Group Limited · ASX:PLS
Pls — Pilbara Minerals — Investor Presentation (May 2018)
46 slides from Pls's investor presentation, May 15, 2018
Slide 1: Pilgangoora – the world's leading lithium development project
For personal use only Pilgangoora – the world's leading lithium development project Corporate Presentation May 2018
Slide 2: Important Notices and Competent Person's Statement
Important Notices and Competent Person’s Statement Not an Offer of Securities For personal use only This document has been independently prepared by Pilbara Minerals Limited (“Pilbara”) and is dated 15/05/2018. This document is provided for informational purposes and does not constitute or contain a
Slide 3: Important Notices and Competent Person's Statement
Important Notices and Competent Person’s Statement Not Financial Product Advice For personal use only This document does not constitute financial product advice or take into account your investment objectives, taxation situation, financial situation or needs. This document consists purely of factual
Slide 4: Company Overview
For personal use only Company Overview Lithium Markets Pilgangoora Stage 1 Project Pilgangoora Stage 2 Project Summary 4
Slide 5: Pilbara Minerals – Overview
Pilbara Minerals – Overview ► Pilgangoora is located in the Pilbara region of Western Australia, a proven mining jurisdiction 120km south of Port Hedland with established transport and port infrastructure For personal use only ► 100% ownership interest in the world-class Pilgangoora Lithium-Tantalum
Slide 6: Pilgangoora – delivering on project execution
Pilgangoora – Pilbara Minerals, delivering on project execution For personal use only Stage 2 PFS (2Mtpa Stage 1 Near-term Resource DFS (2Mtpa) and 4/5Mtpa) Project Production Growth Complete Complete Execution Growth to 5Mtpa Resource Estimation Project Definition Detailed Design and Project Execut
Slide 7: A Key Supplier to Global Lithium Markets
Pilbara Minerals – A Key Supplier to Global Lithium Markets For personal use only Over 110kt (LCE basis) of offtake sold to outstanding project partners; - Scale - Quality - Excellent Technology - Experience, Battery Grade Materials 7
Slide 8: A Key Supplier to Global Lithium Markets
Pilbara Minerals – A Key Supplier to Global Lithium Markets Pilbara Minerals For personal use only Mining SC 6.0 Stage 1 Stage 2 300kt-350ktpa 500kt-550ktpa Stage 1 ≈43Ktpa LCE Spodumene Production 2018 2020 Stage 1+2 >110ktpa LCE Ganfeng Great Wall Motors POSCO Spodumene Offtakers General Lithium G
Slide 9: Stage 2, 5Mtpa Expansion Project – Off-take and Associated Funding
Stage 2, 5Mtpa Expansion Project – Off-take and Associated Funding POSCO agreements announced on 28 February 2018 close out the remaining uncommitted Stage 2 production For personal use only ► Binding offtake agreement for an initial 80,000tpa of 6% spodumene concentrate from Stage 2 production for
Slide 10: Strategic Downstream JV with POSCO
Strategic Downstream JV with POSCO • Pilbara Minerals to be a 30% participant in a Downstream Joint Venture (DSJV) with POSCO (at Pilbara’s election), to For personal use only develop and operate a 30,000tpa LCE lithium carbonate/ lithium hydroxide conversion plant in South Korea Pilbara Minerals PO
Slide 11: Company Overview
For personal use only Company Overview Lithium Markets Pilgangoora Stage 1 Project Pilgangoora Stage 2 Project Summary 11
Slide 12: 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 Lithium Ion rapidly becoming the dominant rechargeable battery technology. Electric Vehicle uptake driving the growth in demand, followed by energy storage. The Lithiu
Slide 13: China market overview – 2017 snapshot
China market overview – 2017 snapshot (Lithium Carbonate Equivalent) For personal use only Domestic Production +17kt3 Imports +193kt1 ►Spodumene (118kt)1 LOCAL PRODUCTION3: Exports +19kt1 ►DSO (36kt)1 ► Brine (≈12kt) ►Lithium Chemicals (39kt)1 ► Spodumene (≈5kt) LC ►Lithium Carbonate (1kt)1 Consumpt
Slide 14: Lithium raw materials – key ingredient of the battery supply chain
Lithium raw materials The key ingredient of the improved battery supply chain ► Lithium raw materials are the vital ingredient for lithium Battery Supply Chain For personal use only battery technology Lithium raw materials ► Lithium is sourced predominantly from: Spodumene Mine - Hard Lithium Carbon
Slide 15: Lithium Raw Material Prices – Grade Differential
Lithium Raw Material Prices – Grade Differential For personal use only Lithium Carbonate ≈99% Technical Grade Lithium Carbonate ≥99.5% Battery Grade Price Variance – Battery Grade vs Technical Grade over recent history Minimum - +USD$1,200/tonne Maximum - +USD$3,500/tonne Upgrading an ‘Industrial or
Slide 16: Global Cost Curve – Product Grade Matters
Global Cost Curve – Product Grade Matters…… Global cost curves are not ‘normalised’ For personal use only for Battery Grade specifications, i.e. ≥99.5% purity lithium carbonate By far, the majority of brine production does not meet Battery Grade specifications and therefore has to have more money sp
Slide 17: Global Investment is Skewing Towards Hard-Rock Sourced Supply
Global Investment is Skewing Towards Hard-Rock Sourced Supply For personal use only Albemarle – 60% of the capacity expansions are in hard-rock sourced Hydroxide capacity. The global majors are undertaking major investments in hard-rock capacity expansion, driven by; - Significant demand for lithium
Slide 18: Spodumene Price Outcomes
Spodumene Price Outcomes For personal use only Recent domestic sales of spodumene within China report very strong pricing. 8,276.25 yuan/t = ≈US$1,314/t (delivered, VAT inc.). Ganfeng settled US$960/t (delivered, VAT exc.) for the balance of 2018 calendar year with Mineral Resources / Neometals. Str
Slide 19: Company Overview
For personal use only Company Overview Lithium Markets Pilgangoora Stage 1 Project Pilgangoora Stage 2 Project Summary 19
Slide 20: Monster DSO Project - Layout
Monster DSO Project - Layout For personal use only Monster Pit Pit Ramp Waste Dump Mining Overview Mining Progress DSO ore skyway To Plant Skyway ROM Haul Road Loop Water Cart turnaround 2 Meg Turkeys Nest Loading High Grade Pit Overview Mining 20 Senior Mine Geo
Slide 21: DSO Project - Update
DSO Project - Update For personal use only Mining Overview Mining Progress DSODSO ore ore skyway skyway Pit Overview Loading High Grade Mining 21 Senior Mine Geo
Slide 22: Stage 1 – 2Mtpa Processing Overview
Stage 1 – 2Mtpa Processing Overview Stage 1 ► DFS completed in September 2016; subsequent update to reflect higher ore reserve (80.3Mt) further enhances project economics For personal use only ► 41 year project life based on 80.3Mt reserve ► LOM average annual production: ► approximately 320ktpa of
Slide 23: Pilgangoora – Quality Product Streams
Pilgangoora – Quality Product Streams Testwork and now pilot scale metallurgical programs deliver outstanding For personal use only results and demonstrate the class of the Pilgangoora project as a large-scale, low cost supplier of quality lithium raw materials: ► Chemical Grade concentrates, Genuin
Slide 24: Pilgangoora Project – Overview
Pilgangoora Project – Overview For personal use only Site overview, as at 14 February 2018 24 Plant site, as at 16 April 2018
Slide 25: Pilgangoora Project – construction progress
Pilgangoora Project – construction progress For personal use only Central Pit Pre Strip Expanded Camp Overview Facilities Process Plant Mining Central 25
Slide 26: Company Overview
For personal use only Company Overview Lithium Markets Pilgangoora Stage 1 Project Pilgangoora Stage 2 Project Summary 26
Slide 27: Stage 2 – 5Mtpa Expansion Overview (PFS Results)
Stage 2 - 5Mtpa Expansion Overview (PFS Results) ► Modest incremental capital to expand to 5Mtpa of AUD 207m For personal use only ► LOM average annual production, after Stage 1 and 2 production ramp-up: ► approximately 800ktpa of 6% spodumene concentrates, and ► approximately 780,000lbs of tantalit
Slide 28: Stage 2 – 5Mtpa Expansion
Stage 2 - 5Mtpa Expansion ► DFS now in progress and on track for completion by mid-2018, paving the way for a Final Investment Decision (FID) in Q3 2018, For personal use only start of construction by Q4 2018 and commissioning from Q4 2019. ► The 5Mtpa expansion of Pilgangoora will position Pilbara
Slide 29: 5Mtpa Expansion - Project Delivery Schedule
5Mtpa Expansion - Project Delivery Schedule For personal use only 29
Slide 30: Summary Investment highlights
Summary Investment highlights For personal use only Outstanding project Rapid pathway Ideally placed to Low-cost and through Significant economics and Offtake and full capitalize on high quality construction and resource scale ability to Stage 1 project robust lithium lithium production from and gra
Slide 31: Supplementary Information
For personal use only Supplementary Information 31
Slide 32: Board of Directors
Board of Directors Highly experienced company director and former solicitor with over 30 years’ professional For personal use only Non-Executive Tony Kiernan experience. Currently Chairman and a non-executive director of several ASX-listed resource Chairman companies. Mining Engineer with over 22 ye
Slide 33: Lithium Ion Battery Technology
For personal use only Lithium Ion Battery Technology Lithium Market Pilgangoora Project 33
Slide 34: Leverage to Lithium Ion Battery Materials
Leverage to Lithium Ion Battery Materials ► The leverage to Lithium Ion battery materials sits with Lithium For personal use only ► Massive market growth required in lithium raw materials to contribute to growth in battery industry: ► 250% supply growth to 2025 ► >500% supply growth to 2030 ► It’s o
Slide 35: Lithium Ion Battery Technology
For personal use only Lithium Ion Battery Technology Lithium Market Pilgangoora Project 35
Slide 36: Roskill significantly upgrades Lithium Outlook
Independent research group, Roskill, significantly upgrades Lithium Outlook Significantly increased outlook driven by Li-Ion Battery demand in Electric Vehicles For personal use only Battery Other 1,800 Increased lithium use driven by EV battery requirements: 1,600 168 1,400 e-Buses PHEV & BEV HEV e
Slide 37: Great Wall Motors - China's largest SUV and pickup manufacturer
Great Wall Motors - China’s largest SUV and pickup manufacturer • Listed on the Hong Kong & Shanghai Stock Exchanges For personal use only • Market capitalisation of RMB 120Bn ~US$19Bn • >60,000 employees and produces ~1 Million vehicles per year from 4 vehicle manufacturing bases. • SUVs sold under
Slide 38: 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, Ganfeng For personal use only 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 39: 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 capitalisation For personal use only of RMB 2.6Bn (USD ~410m) ► Currently produces 8,000tpa of Lithium Carbonate (LC) & 2,000tpa of High Purity LC 4N (99.99%) ► Recently commissi
Slide 40: Lithium Ion Battery Technology
For personal use only Lithium Ion Battery Technology Lithium Market Pilgangoora Project 40
Slide 41: Resources & Reserves
Resources & Reserves JORC Mineral Resources: 25 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 1.25
Slide 42: 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 tantalum by-product. Source: Published resource estimates by project owners. Note that resources estimates for projec
Slide 43: Pilgangoora – mining
Pilgangoora – mining A straightforward open pit mining development ► Measured, Indicated and Inferred Resource of 156.3Mt @ 1.25% Li2O For personal use only and 128ppm Ta2O5 containing 1,952,000 tonnes Li2O, and including 44Mlbs Ta2O5 (Mineral Resource Update ASX release dated 25 January 2017) ► Ore
Slide 44: Pilgangoora – processing
Pilgangoora – processing ► 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 flotation ► Low/High intensity magnetic s
Slide 45: 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 46: Project highlights – 5Mtpa
Project highlights – 5Mtpa (inclusive of Stage 1 and Stage 2) Metric Unit PFS 5Mtpa For personal use only Life of Mine (LOM) Years 17 LOM Ore Mined Mt 80.4 LOM Waste Mined Mt 310.1 LOM Strip Ratio (waste:ore) 3.85 Plant Feed Rate Mtpa 4.67 Average Lithium Head Grade % 1.26 Average Lithium Recovery %