Slide 1: FY2023 Half-Year Results
FY2023 Half-Year Results Thursday 23 February 2023 ASX: PLS Investor conference call covering the FY23 Half-Year results will be held at 10.00am (WST) / 1.00pm (AEDT) Friday, 24 February 2023 Webcast – for Retail Shareholders and Investors https://kapara.rdbk.com.au/landers/a5df70.html Teleconferenc
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 23 February 2023. Not an offer of securities This document is provided for informational purposes and does not constitute or contain an offer, invitation, sol
Slide 3: Important notices
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
Important notices Financial information To provide additional insight into the business, certain unaudited non-IFRS measures such as “gross margin”, “EBITDA”, “underlying profit after tax”, and “net cash” may be used in this presentation which, in the opinion of the Company’s directors, provides use
Slide 5: H1 FY2023 Financial Highlights
H1 FY2023 Financial Highlights $2.18Bn $1.81Bn $1.24Bn Revenue EBITDA2 NPAT +647%1 +1,091%1 +989%1 $2.23Bn $2.08Bn 11 cents per share Cash Balance Net Cash2,3 Fully franked interim dividend - $329.8M 1 Expressed as a percentage increase compared to H1 FY2022. 2 In order to provide additional insight
Slide 6: Pilgangoora Project
Pilgangoora Project One of the few major hard-rock lithium producers globally Tier 1 asset Two plants with strong growth potential in operation ~580,000 tpa 1 26 + years 2 processing capacity (current) mine life 1 Assumed product grade of SC5.7%. 2 Refer to ASX Announcement 6 October 2021. 6
Slide 7: Sustainability
Sustainability Community investment Climate change Indigenous engagement and opportunities Multi-year partnerships with Earbus 6MW solar farm energised and Overnight cultural awareness Foundation and Smith Family supplying power to operation camp for employees with Nyamal People 7
Slide 8: Safety and people
Safety and people 87% 4.22 1 participation rate annual Total recordable injury employee engagement and frequency rate (TRIFR) culture survey 1.17 (target 1.00) 2 22% Quality safety Interactions Female employment completed per 1,000 hours 1 Reclassification of two medical treatments for December Quar
Slide 9: Financials
Financials FY2023 Half-Year Results
Slide 10: Financial results driven by production and sales outcomes
Financial results driven by production and sales outcomes Spodumene concentrate Produced – Shipped – Average Realised Price – 309,255 dmt 1 286,876 dmt US$4,993/dmt (PCP : 169.2kt) (PCP: 170.2kt) (PCP: US$1,232/dmt) 1 PCP represents the prior corresponding period. 10
Slide 11: Half-Year Financial Results Summary
Half-Year Financial Results Summary Strong half year profit achieved following robust lithium raw materials demand conditions, providing positive pricing outcomes • EBITDA and Underlying Profit After Tax driven by improved Units Dec-22 Dec-21 Change operating performance, combined with higher pricin
Slide 12: H1 FY2023 Financial Results
H1 FY2023 Financial Results Gross Margin from Unit Operating Cost2 Result driven by: Operations1,3 of $1,846.5M • A$595/dmt (FOB Port Hedland excl. royalties) • Increased production and shipping (PCP: $174.3M) o (PCP: A$476/dmt) volumes, together with improved gross margin per tonne. • Sales revenue
Slide 13: Profit and Loss
EBITDA2 of $1,811.5M driven by: higher spodumene concentrate production, Profit and Loss • • more tonnes being shipped, and • higher margin per tonne (driven by significantly improved pricing). Dec-22 Dec-21 Change Shipped tonnes totalled 286,876 dmt; representing a 69% increase from prior correspon
Slide 14: Strong Balance Sheet
Strong Balance Sheet 31 December 2022 Cash Balance - Debt - Net Cash1 - $2,226.5M US$100.1M $2,078.7M 30 June 2022 cash of $591.7M Senior secured debt facility Net cashflow from operating activities of $1,805.0M 1 In order to provide additional insight into the business, unaudited non-IFRS measures
Slide 15: Cashflow
Cashflow • Significant cash generated from operating activities of $1,805M, a 1,447% increase over the prior corresponding period, delivered following Dec-22 Dec-21 Variance a strong operational performance and buoyed by strong global demand $M $M $M conditions and positive pricing outcomes. Opening
Slide 16: Balance Sheet
Balance Sheet • Significant improvement in cash and working capital positions Dec-22 Jun-22 Variance underpinned by strong operational performance. Period end cash $M $M $M balance of $2,226.5M. Cash 2,226.5 591.7 1,634.8 • Decrease in secured debt following $15.1M repayment of principal on Outstand
Slide 17: H1 FY2023 Cashflow Waterfall
A$M Cash balance 30 June 2022 Receipts received $1.85Bn Operational payments Margin from operations Capital expenditure payments H1 FY2023 Cashflow Waterfall Repayment of borrowings Net interest income Other Cash balance 31 December 2022 17
Slide 18: Rising Cash Balance – strong production volumes and pricing
Rising Cash Balance – strong production volumes and pricing $2.23Bn 2400 2200 2000 cash balance 1800 1600 1400 1200 $M 1000 800 600 400 200 0 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Quarterly cashflow from operations $M Closing quarter cash balance $M December 2020 Quar
Slide 19: Inaugural Interim Dividend Declared for FY2023
Inaugural Interim Dividend Declared for FY2023 • 11 cents per share (fully-franked) after applying a target • Capital Management Framework established in 1 dividend payout ratio of 30% of free cash flow to the FY2023 November 2022 to prudently allocate capital. half year result. • Capital allocation
Slide 20: FY2023 Guidance (updated)
FY2023 Guidance (updated) Spodumene Concentrate Production Production and marketing strategy for FY2023 is focused on maximising sales volumes by targeting a lower product grade to optimise product yield and maximise 600-620,000 dmt concentrate production. A$580-A$610/dmt (FOB Port Hedland ex royalt
Slide 21: Our Strategy
Our Strategy So Pilbara Minerals
Slide 22: Our strategy
Deliver on our current commitments Our strategy Extract greater value along the battery minerals supply chain To be a leader in the provision of sustainable battery Achieve full potential at Pilgangoora mineral products Diversify revenue beyond Pilgangoora 22
Slide 23: Operate
Operate So Pilbara Minerals
Slide 24: Production Continuing to Grow
Production Continuing to Grow 180,000 160,000 Quarterly spodumene production / shipments (dmt) 140,000 Production 120,000 100,000 10% Q on Q 80,000 (Q1-Q2 FY23) 60,000 40,000 20,000 0 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Produced (dmt) 24
Slide 25: Grow
So Pilbara Minerals
Slide 26: Bolstered Executive Team to Deliver our Strategy
Bolstered Executive Team to Deliver our Strategy Dale Henderson Alex AlexEastwood Eastwood BrianLynn Brian Lynn Vince De Carolis MANAGING DIRECTOR & CHIEF CHIEF COMMERCIAL&&LEGAL COMMERCIAL LEGAL CHIEFFINANCIAL CHIEF FINANCIAL OFFICER OFFICER CHIEF OPERATING OFFICER CHIEF EXECUTIVE OFFICER OFFICER O
Slide 27: Pathway to up to 1Mtpa
Pathway to up to 1Mtpa ~1,000 P1000 provides unallocated P1000 Project production for further (subject to FID) downstream opportunities. 680 P680 Project –(under construction) 580 Installed Capacity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FUTURE CY22 CY23 Production capacity of up to 580ktpa is an aggregate spodume
Slide 28: Expansion Pathway to Increase Production up to 1Mtpa
Expansion Pathway to Increase Production up to 1Mtpa Accelerated growth to capture positive demand conditions and increase revenue P680 Expansion • Construction underway • Revised capital estimate • On target to meet delivery schedule • Project construction contract awarded P1000 Expansion • $38.3M
Slide 29: Value-add
Value-add So Pilbara Minerals
Slide 30: Extract Greater Value Along the Battery Materials Supply Chain
Extract Greater Value Along the Battery Materials Supply Chain POSCO Pilbara Lithium Solutions JV Mid-stream JV (lithium hydroxide chemicals) (lithium salts >35% Li2O) • Construction of chemical facility in South Korea • Innovative “value added” refining process using flash calcination progressing •
Slide 31: First Spot Sale Linked to Lithium Hydroxide Tolling
First Spot Sale Linked to Lithium Hydroxide Tolling Opens the door to future tolling arrangements for unallocated spodumene concentrate • 15,000 tonne spodumene concentrate spot sale February 2023. • First of its kind for Pilbara Minerals, utilising new commercial model based on lithium hydroxide to
Slide 32: Market
So Pilbara Minerals
Slide 33: Lithium Pricing Remains Strong
Lithium Pricing Remains Strong Source: Benchmark Mineral Intelligence 33
Slide 34: Lithium deficit
Lithium deficit Demand (Base case) The expected deficit in lithium by 2040 is the ~2.6Mt equivalent of ~18 LCE deficit 1 Pilgangooras with likely pricing implications 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Source:
Slide 35: Questions?
Questions? Follow us on pilbaraminerals.com.au ASX: PLS