Pls Group Limited · ASX:PLS
Pls — Pilbara Minerals — Investor Presentation (May 2019)
36 slides from Pls's investor presentation, May 3, 2019
Slide 1: Updated Corporate Presentation cover letter to ASX
Company Announcements Office For personal use only Australian Securities Exchange 20 Bridge Street SYDNEY NSW 2000 3 May 2019 Dear Sir/Madam UPDATED CORPORATE PRESENTATION Please find attached an updated Corporate Presentation, which replaces the Corporate Presentation lodged on 1 May 2019 and, in a
Slide 2: Pilgangoora: a world class lithium and tantalum production centre
Pilgangoora: a world class lithium For personal use only and tantalum production centre Corporate presentation – April 2019 ASX: PLS
Slide 3: Important Notices and Competent Persons Statement
Important Notices and Competent Persons Statement Not an Offer of Securities This document has been independently prepared by Pilbara Minerals Limited (“Pilbara”) and is dated 30/4/2019. This document is provided for informational purposes and does not constitute or contain an offer, invitation, sol
Slide 4: Important Notices and Competent Persons Statement
Important Notices and Competent Persons Statement U.S. Securities Laws Any securities issued by Pilbara have not been and will not be registered by Pilbara under the United States Securities Act of 1933 (“U.S. Securities Act”). Accordingly, such securities may not be offered or sold in the United St
Slide 5: Pilgangoora Lithium-Tantalum Project
Pilgangoora Lithium-Tantalum Project One of the largest spodumene-tantalite resources in the world For personal use only • 100% owned by Pilbara Minerals (ASX200, market cap $1.2B) • 23 year mine life to date (based on Stage 2) • Established transport and port infrastructure • Stage 1 (2Mtpa) produc
Slide 6: Pilbara Minerals: delivering on project execution
Pilbara Minerals: delivering on project execution Pilgangoora Lithium-Tantalum Project: from first drill hole to product shipment in under four years For personal use only Exploration Production Stage 2 and Stage PFS, DFS, design / resource Project execution and shipments 3 expansions up to and engi
Slide 7: Exceptional growth opportunity
Exceptional growth opportunity A clear expansion pathway to meet customer growth requirements For personal use only STAGE 1: 2MTPA STAGE 2: 5MTPA STAGE 3: UP TO 7.5MTPA STAGE: Operations STAGE: DFS and FID complete STAGE: Proposed STATUS: Production and STATUS: Financing underway STATUS: Scoping stu
Slide 8: Commercial production achieved
Commercial production achieved Achievement of sustained output and quality of concentrate from Stage 1 (2mtpa) operation For personal use only Total monthly Spodumene concentrate production (6% Li, 1.8% Fe) 25,000 20,000 15,000 dmt 10,000 5,000 0 Aug Sep Oct Nov Dec Jan Feb Mar In-Spec Spodumene con
Slide 9: Production and sales
Production and sales Consistent production and customer sales for the March Quarter Production and sales For personal use only Units Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Direct Shipping wmt - 145,974 205,766 02 02 Ore (DSO) sold Spodumene dmt - - 11,015 47,859 52,196 concentrate produced Spodumen
Slide 10: Production trend
Production trend Steady increase in spodumene concentrate production as processing plant is further optimised for lithia recovery and throughput For personal use only Spodumene concentrate production (dmt) 25,000 20,000 15,000 dmt 10,000 5,000 0 Aug Sep Oct Nov Dec Jan Feb Mar Apr In-Spec Forecast R
Slide 11: A low-cost hard rock lithium operation
A low-cost hard rock lithium operation Based upon Roskill's most recent lithium cost model, Pilgangoora is expected to be positioned favourably on the global spodumene cost curve For personal use only 2018 spodumene concentrate cost curve 2023 spodumene concentrate cost curve US$/t spodumene 6%, CIF
Slide 12: Stage 2, 5Mtpa expansion
Stage 2, 5Mtpa Aerial photograph w/- Stage 2 3D model overlay expansion DFS results and offtake partner confidence For personal use only support major project expansion • Additional 3Mtpa processing circuit to increase processing capacity to 5Mtpa • Average annual production of approximately 800-850
Slide 13: Stage 3, 7.5Mtpa expansion
Aerial photograph w/- Stage 2 and 3 3D model overlay Stage 3, 7.5Mtpa expansion Scoping study results delivers positive For personal use only results and support long term growth • Additional 2.5Mtpa processing circuit to increase processing capacity to 7.5Mtpa • Average annual production of approxi
Slide 14: Stage 3 partnering process
Stage 3 partnering process Partners to be considered for Stage 3 offtake, chemical plant and project expansion For personal use only Potential sale of Support funding Stage 3 offtake Fully integrated minority project package Stage 2 and further lithium raw level interest and 3 expansion diversificat
Slide 15: Pilbara Minerals - connected to the entire supply chain
Pilbara Minerals - connected to the entire supply chain For personal use only Chemical Pre-Cursor Converters Cathode Cells & Li Resource EVs Cathode Material Battery Packs Battery Grade Material LiOH / LC * * 14 *Potential PLS JV partners
Slide 16: Pilgangoora - a new hard rock lithium supply to feed the growing Korean market
Pilgangoora - a new hard rock lithium supply to feed the growing Korean market KOREAN COMPANIES BATTERY PLANT EXPANSIONS For personal use only (INCLUDING PLANTS PLANNED FOR EUROPE & CHINA) 300 7 X GROWTH 250 200 Capacity GWh 240- 600ktpa 315ktpa 150 285 100 185 50 40 0 2017 2023 2028 Source: Benchma
Slide 17: Proposed Pilbara Minerals - POSCO JV
Proposed Pilbara Minerals - POSCO JV Future participation in the rapidly developing Korean lithium ion battery market through a jointly owned lithium chemicals plant For personal use only • Spodumene sales into the Korean market • 30% JV in chemical conversion facility in South Korea with the capaci
Slide 18: Global lithium chemicals pricing
Global lithium chemicals pricing Source: FastMarkets MB, Friday April 26 2019 Lithium carbonate ex-works domestic China Lithium hydroxide ex-works China Lithium carbonate min 99.5% Li2CO3 battery grade, ex-works domestic China, yuan per tonne Lithium hydroxide monohydrate min 56.5% LiOH.H2O battery
Slide 19: Lithium extracted from ore: the future proof solution for Volkswagen
LITHIUM EXTRACTED FROM ORE THE FUTURE PROOF SOLUTION FOR VOLKSWAGEN For personal use only Lithium ore to lithium hydroxide • Commercially more attractive • More stable to extract and easier to scale • Better suited to next generation of batteries Australia the world market leader for ore-based produ
Slide 20: Pilgangoora is set for a bright future
Pilgangoora is set for a bright future Securing Pilbara Minerals’ position as one of the largest, lowest cost lithium- tantalum producers in the world is the focus of 2019 For personal use only OPTIMISATION Continue Stage 1 optimisation works to achieve name-plate capacity, including design plant ut
Slide 21: What sets us apart?
What sets us apart? 1 World class The Pilgangoora Project is one of the premier hard-rock lithium-tantalum resources globally (by size and grade) where there is both For personal use only lithium resource spodumene concentrate offtake and a joint venture position available, with Tantalite by-product
Slide 22: pilbaraminerals.com.au
For personal use only ASX: PLS pilbaraminerals.com.au Follow us on
Slide 23: Additional Information
For personal use only Additional Information 22
Slide 24: Corporate overview
Corporate overview CAPITAL STRUCTURE ASX: PLS Current share price1 A$0.655 For personal use only Shares on issue 1,848 million Options on issue2 35 million Market capitalisation1 A$1.21 billion Cash at bank3 A$103.9M Top 20 shareholders (as at 15 April 2019) 33% 3 month average daily volume4 ~9.8M s
Slide 25: Experienced board of directors
Experienced board of directors For personal use only Tony Kiernan Ken Brinsden Nick Cernotta Sally-Anne Layman Steve Scudamore Non-Executive Chairman Managing Director & CEO Non-Executive Director Non-Executive Director Non-Executive Director Highly experienced company Mining engineer with over 25 H
Slide 26: Resources and reserves
Resources and reserves For personal use only JORC Mineral Resource Estimate - September 2018 (using 0.2% Li2O cut off grade) TONNAGE LI2O TA2O5 LI2O TA2O5 FACTORED CATEGORY (MT) (%) (PPM) (T) (MLBS) FE2O3 (%) Measured 22.8 1.38 145 314,000 7.3 0.44 Indicated 112.8 1.29 119 1,456,000 29.5 0.57 Sub-to
Slide 27: Exploration target: demonstrates incredible project mineral endowment
Exploration target: demonstrates incredible project mineral endowment For personal use only Many areas at Pilgangoora remain under-explored and as such are important targets to support future resource growth. MILLION GRADE GRADE TARGET AREA TONNES LI2O % TA2O5 PPM Monster-Houston Creek 5-10 1.2 - 1.
Slide 28: Pilgangoora – a globally significant hard rock lithium resource
Pilgangoora – a globally significant hard rock lithium resource For personal use only 27
Slide 29: Future lithium raw material supply
28 Future lithium raw material supply Lithium hydroxide will become the sought after product for battery manufacturers presenting a significant opportunity for hard rock lithium projects For personal use only Forecast for lithium demand by lithium chemical production across all sectors A stable supp
Slide 30: Strong offtake partners committed to Stage 1 and 2 production
Strong offtake partners committed to Stage 1 and 2 production For personal use only Major producer of lithium chemicals in China Biggest steel producer in South Korea • Highly experienced with more than 15 years of • Listed on KSX, market cap US$29.5B operational and technical know how • Largest pro
Slide 31: Offtake for 100% of Stage 1 and 2 of Pilgangoora
Offtake for 100% of stage 1 and 2 of Pilgangoora Pilbara Minerals For personal use only Stage 1 = ~43Ktpa LCE Mining Stage 1+2 = >110ktpa LCE Stage 1+2+3 = ~160ktpa LCE Stage 1 Stage 2 Spodumene Stage 3 300kt-350ktpa 500kt-550ktpa ~400ktpa Production 2018 2020 General Lithium Ganfeng Lithium Ganfeng
Slide 32: Joint venture with POSCO
Joint venture with POSCO Positioning Pilbara Minerals at the forefront of the rapidly growing South Korea battery market For personal use only • Provides a strategic link to lithium battery and Pilbara Minerals POSCO EV manufacturers • Expands access to the battery industry and PosLX JV Zhejiang Hua
Slide 33: Global battery plant pipeline by plant location
Global battery plant pipeline by plant location Korean based companies market share of plant capacity by country For personal use only 140 (total 285GWh) 800 120 19% 700 (127) 100 686 600 Capacity GWh 80 46% Forecast capacity GWh 500 60 (80) 40 100% 400 (53) 20 17% 300 (25) 0 China Europe Korea USA
Slide 34: Pilgangoora processing
Pilgangoora processing Spodumene and tantalite concentrate recovery For personal use only • Spodumene concentrate contains lithium in the form of lithia (Li2O), recovered at the mine via the concentrator: ‐ 2-stage heavy media separation for coarse spodumene concentrate ‐ oxide flotation for fine sp
Slide 35: Stage 2 processing plant upgrades to 5Mtpa
Stage 2 processing plant upgrades to 5Mtpa Upgrades to the concentrator will be conducted across two stages in order to reach 7.5Mtpa processing capacity For personal use only 1 Stage 2 tailings Increase thickener size to cater for 5Mtpa throughput 2 3 1 6 2 Stage 2 spodumene dressing Increased
Slide 36: Stage 3 processing plant upgrades (to 7.5Mtpa)
Stage 3 processing plant upgrades (to 7.5Mtpa) Stage 3 will utilise an additional high pressure grinding roll instead of expanding the existing circuit For personal use only 1 Stage 3 spodumene dressing Additional concentrate filter Increased storage capacity (not shown) 4 1 2 Stage 3 crushing c