Pls Group Limited · ASX:PLS
Pls — H1 FY2024 Earnings Presentation
35 slides from Pls's earnings presentation, Feb 22, 2024
Slide 1: FY24 Interim Financial Results
22 February 2024 FY24 Interim Financial Results ASX: PLS
Slide 2: Pilbara Minerals – a major lithium materials supplier
Pilbara Minerals – a major lithium materials supplier 100% owner of Tier 1 Asset in leading low risk mining jurisdiction ~34-year mine life with 214Mt at 1.2% Li2O Ore Reserve 1 +70% increase ~140km in production capacity 2 under construction to Port Hedland by road Diversification into battery mate
Slide 3: Operational and financial highlights
Operational and financial highlights Strong Expansion plans POSCO JV - operational progressed downstream performance1 320,153t On schedule Train 1 produced and and budget commenced 306,250t shipped commissioning Ore Reserves2 55% EBITDA margin3 Balance sheet strength4 increased By 35% to 214Mt Stron
Slide 4: Sustainability journey
Sustainability journey Safety Decarbonisation Community Reduction in total Power strategy 12 community grants recordable injury released expected to awarded across frequency rate (TRIFR)1 reduce power related education, mental to 3.89 emissions intensity2 by health and cultural up to 80% by 20303 pr
Slide 5: Building a leading lithium materials business
Building a leading lithium materials business 5
Slide 6: Delivering our strategy
Delivering our strategy Lorem ipsum re pe sincid et ut provit unt eicto odit rem qui ni Operate amust am, voluptas aut que ne cum faccae moluptatem Deliverfuga. our operating performance Quis ab ius, ati commitments auditatquiae ex expedio To be a leader Grow nemquia tendus. in the provision Achieve
Slide 7: Capturing value across the supply chain
Capturing value across the supply chain Upstream Mid-Stream Downstream Spodumene concentrate Lithium enriched product Lithium hydroxide (lithium phosphate) ~5.2% >16% w/w lithium metal3 ~16.5% w/w lithium metal4 lithia content1,2 (technical grade) (battery grade) 5 6 Notes: 1. Average grade of spodu
Slide 8: Two expansion projects underway to take production capacity to 1Mtpa
Two expansion projects underway to take production capacity to 1Mtpa P680 Expansion P1000 Expansion Primary rejection facility – operational Earthworks and foundations commenced Crushing and ore sorting facility - under construction Update 8 Image: Crushing and ore sorting facility foundations and s
Slide 9: Supply relationship expanded with leading battery chemical companies
Supply relationship expanded with leading battery chemical companies • One of the largest producers of lithium chemicals globally • Foundation customer of Pilbara • Expands offtake agreement o 310kt in CY24 o 260 - 310kt in CY25 o 260 - 310kt in CY26 • Medium term offtake expansion preserves Pilbara
Slide 10: Supply relationship expanded with leading battery chemical companies
Supply relationship expanded with leading battery chemical companies • Established global lithium chemical converter • Extends and expands offtake agreement o 85kt in CY24 o 150kt in CY25 o 150kt in CY26 • Medium term offtake expansion preserves Pilbara Minerals longer term optionality Chengxin Lith
Slide 11: FY24 Interim Results - Financials
FY24 Interim Results - Financials Note: Non-IFRS financial metrics such as “Underlying Profit after tax”, “EBITDA”, “Cash margin from operations” and “Net Cash” are used throughout the presentation to provide additional information on business performance. A reconciliation of Non-IFRS metrics to sta
Slide 12: Financial results – summary
Financial results – summary Financial performance impacted by lower prices period-on-period Summary Operational and Financial Metrics Units H1 FY23 H1 FY24 Change % • Revenue reduced by 65% to $757M, driven by a 67% decrease in the Physicals average estimated realised price, partly offset by an incr
Slide 13: Profit and loss – summary
Profit and loss – summary Total costs and unit operating costs (CIF) lower in the period Summary Profit and Loss Metrics Units H1 FY23 H1 FY24 Change % • Operating costs (excluding depreciation and amortisation) improved by 1 Revenue $M 2,180 757 (65%) 17% to $276M reflecting a continued focus on co
Slide 14: Revenue, EBITDA and production volume
Revenue, EBITDA and production volume P+L metrics by half – FY22 to H1 FY24 2,500 H1 FY24 300 REVENUE $757M 2,000 250 EBITDA $415M 1,500 200 EBITDA margin 55% $M 150 Production 1,000 320kt 100 EBITDA margin Revenue 500 ~55% EBITDA 50 EBITDA margin Production - - volume Dec-21 Jun-22 Dec-22 Jun-23 De
Slide 15: Cash flow
Cash flow Strong ending cash balance Summary Cash Flow Statement A$M H1 FY23 H1 FY24 Change % Operating cash flow Receipts from Customers 2,172 907 (58%) • Operating cash flow was $(319)M in H1 FY24, impacted by tax payments of $874M. Payments for Operating Costs (347) (371) • Of the total $874M of
Slide 16: Positive cash margin from operations
Positive cash margin from operations Cash flow bridge – 30 June 2023 to 31 December 2023 • The Group generated strong and positive cash margin from operations reflecting the strong cash generation of the business, notwithstanding the lower realised price of US$1,645/t for the half-year2. • Cash marg
Slide 17: Cash and liquidity
Cash and liquidity Strong liquidity with Net Cash of A$1.8B Summary Cash & Liquidity A$M 30-Jun-23 31-Dec-23 Change % • Strong balance sheet as at 31 December 2023 underpinned by focused Net Cash cash management. Cash 3,339 2,144 (36%) • Additional loan drawdowns were made during the period from the
Slide 18: Balance sheet – summary
Balance sheet – summary Summary Balance Sheet Metrics A$M 30-Jun-23 31-Dec-23 Change % • Reduction in receivables and increase in payables at 31 December 2023 Cash 3,339 2,144 (36%) driven by the timing of shipments and provisional pricing adjustments. Receivables 132 106 (20%) • Increase in invento
Slide 19: Preserving balance sheet strength
Preserving balance sheet strength Strong balance sheet Investment Strategy with $2.1B of cash – • Investment in P680 and P1000 Projects to continue - fully funded, gives PLS well positioned rise to lower unit costs and puts Pilbara Minerals in an even stronger position to benefit from higher prices.
Slide 20: Markets
Sy Pilbara Minerals Markets 20
Slide 21: Strong growth forecast for lithium demand
Strong growth forecast for lithium demand Global EV sales Annual lithium demand 60 6,000 50 5,000 40 4,000 CAGR 24% (estimate) CY23 - CY28 Millions Kt LCE 30 59.1 3,000 31% growth 20 CY22 - CY23 2,000 36.1 10 1,000 13.8 10.5 6.6 3.3 0 - 2020 2021 2022 2023 2028E 2033E 2020 2021 2022 2023 2024 2025 2
Slide 22: Government policy – global momentum
Government policy – global momentum UK China 80% EVs by 2030, 20% EVs in light and 100% EVs by 2035, heavy vehicles by 2025. 30% EV bus and truck sales by 2030 NEV exemption from vehicle United States purchase taxes until 2027, 50% passenger EVs & 30% ESS subsidies Japan commercial EVs by 2030. 100%
Slide 23: Global industry emerging for the lithium-ion supply chain with…
Global industry emerging for the lithium-ion supply chain with… North America China Global market share % Global market share % Market Market share share growth1 2023 2030f growth1 2023 2030f Global EV Global EV market share 12% 18% x1.6 market share 58% 42% x0.7 EV penetration 9% 40% x4.3 EV penetr
Slide 24: …Lithium supply chain forecast to diversify
…Lithium supply chain forecast to diversify North America China Global market share % Global market share % Capacity Capacity growth1 growth1 2023 2030f 2023 2030f Gigafactory 6% 15% x9.6 Gigafactory 83% 67% x2.9 Cathode 0% 3% x98 Cathode 86% 84% x7.2 Lithium refining 1% 14% x30 Lithium refining 73%
Slide 25: Questions
Sy Pilbara Minerals Questions 25
Slide 26: Contacts
Contacts 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 26
Slide 27: Appendix A
Appendix A Additional operational and financial information 27
Slide 28: Appendix A1 – Physicals Summary
Appendix A1 Physicals Summary Total Ore Mined and Processed Units Sep Q FY24 Dec Q FY24 H1 FY24 H1 FY23 Ore mined wmt 1,411,017 1,618,748 3,029,765 2,538,284 Waste material wmt 7,741,062 7,965,907 15,706,969 12,901,285 Total material mined wmt 9,152,078 9,584,655 18,736,733 15,439,569 Average Li2O g
Slide 29: Appendix A2. Reconciliation: Statutory P&L to Management P&L
Appendix A2. Reconciliation: Statutory P&L to Management P&L Profit and loss - Statutory Profit and loss - Management P&L Cross ref to A$M H1 FY23 H1 FY24 Change A$M H1 FY23 H1 FY24 Change Cross ref to statutory P&L Mgt P&L Revenue from contracts with customers1 2,180.1 757.2 (65%) A Revenue from co
Slide 30: Appendix A3 – Reconciliation from Net Profit to EBITDA
Appendix A3 Reconciliation from Net Profit to EBITDA Reconciliation – H1 FY24 Statutory Net Profit to EBITDA References: A. Consolidated statement of profit or loss and other comprehensive income in the financial statements B. Refer note 2.5 in the financial statements C. Refer note 2.2 in the finan
Slide 31: Appendix A4 – Reconciliation of Statutory Operating Costs to Unit Costs
Appendix A4 Reconciliation of Statutory Operating Costs to Unit Costs Reconciliation – H1 FY24 Statutory Operating Cost to unit Cost References: A. Operating Costs per the financial statements Unit cost (CIF) $900/dmt B. Refer to Note 2.2 in the financial statements for depreciation and amortisation
Slide 32: Appendix B
Appendix B Important notices and other supporting information 32
Slide 33: Important notices
Important notices This document has been prepared by Pilbara Minerals Limited (“Pilbara” or “Pilbara Minerals” or the “Company”) and is dated 22 February 2024. Not an offer of securities This document is provided for informational purposes and does not constitute or contain an offer, invitation, sol
Slide 34: Important notices
Important notices Important Information regarding Mineral Resources, Ore Reserves and P680 and P1000 Projects Information in this presentation regarding expansions in nameplate capacity of the Pilgan Plant in respect of the P680 and P1000 projects are underpinned by the Company’s existing Ore Reserv
Slide 35: Pilgangoora Mineral Resources and Ore Reserves
Pilgangoora Mineral Resources and Ore Reserves Category Tonnes Li2O Ta2O5 Fe2O3 Li2O Ta2O5 (Mt) (%) (ppm) (%) (Mt) (M lb) Mineral Resource estimate at 30 June 2023 Measured 22.1 1.34 146 0.44 0.3 7 Indicated 315.2 1.15 106 0.53 3.6 74 Inferred 76.6 1.07 124 0.54 0.8 21 Total 413.8 1.15 112 0.53 4.8