Pls Group Limited · ASX:PLS
Pls — FY2022 Earnings Presentation
35 slides from Pls's earnings presentation, Aug 23, 2022
Slide 1: FY2022 Annual Financial Results and FY2023 Guidance Presentation
Click to edit FY2022 Annual Financial Results and FY2023 Guidance Presentation Monday 22 August 2022 ASX: PLS / BBG: PLS AU Link: https://webcast1.boardroom.media/watch_broadcast.php?id=62fb4e6478f48
Slide 2: Important Notices
Important Notices Not an Offer of Securities This document has been prepared by Pilbara Minerals Limited (“Pilbara” or “Pilbara Minerals” or the “Company”) and is dated 22 August 2022. This document is provided for informational purposes and does not constitute or contain an offer, invitation, solic
Slide 3: Important Notices
Important Notices Not Financial Product Advice 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 information and does not involve or imply a recommenda
Slide 4: Important Notices
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)” are used in this presentation which are unaudited, non-IFRS measures tha
Slide 5: Important Notices
Important Notices Scoping and other technical studies in respect of any revised project expansions for the Pilgan Project have been undertaken to determine the potential viability of the revised expansions and to reach a decision to proceed with more definitive studies. Each scoping study has been p
Slide 6: Pilbara Minerals
Pilbara Minerals Leading ASX-listed lithium company, with 100% ownership of the largest independently owned hard-rock lithium operation in the world ASX 100 $874.2M $714.3M 1 2 Listed company Cash at Bank Net Cash Strong FY22 financial performance $1.2Bn $814.5M $561.8M Revenue EBITDA NPAT +577%3 1
Slide 7: 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 up to ~580,00tpa 1 26 + years 2 processing capacity mine life 1 Up to 580,000tpa of spodumene concentrate in aggregate processing capacity, comprising Pilga
Slide 8: Financial
Financial 8
Slide 9: 2022 Annual Financial Report Results
2022 Annual Financial Report Results FY2022 Production Produced – Shipped – Sales – and Sales 377,902 dmt 361,035 dmt $1,189.6M Spodumene concentrate (FY21 281.1kt) (FY21 281.4kt) (FY21 $175.8M) Gross Margin from Pilgan Plant Unit Operating Cost2 Result driven by: FY2022 Financial Operations of $853
Slide 10: Full-Year Financial Results Summary
2022 Annual Financial Results Full-Year Financial Results Summary Strong global demand for lithium and positive pricing conditions deliver inaugural full year profit • EBITDA and Underlying Profit after tax driven by buoyant Units Jun-22 Jun-21 Change market conditions with substantial increases in
Slide 11: Profit and Loss
2022 Annual Financial Results Profit and Loss • EBITDA2 of $814.5M driven by buoyant market conditions (particularly in Jun-22 Jun-21 Change the 2nd half of FY2022) with increased customer demand coupled with positive pricing conditions driving a substantial improvement in gross Spodumene Concentrat
Slide 12: Cashflow
2022 Annual Financial Results Cashflow • Cash generated from operating activities of $647.6M following a strong operational performance and buoyed by strong global demand and positive pricing conditions Jun-22 Jun-21 Change $M $M $M • Capital investment activities of $204.5M inclusive of the Opening
Slide 13: FY2022 Cashflow waterfall
A$M Cash balance 30 June 2021 Receipts received $599.5M Pilgan Plant Operational payments $679.2M Pilgangoora Operations Net receipts Ngungaju Plant Corporate payments FY2022 Cashflow waterfall Exploration and study payments Net receipt POSCO investment Share options exercise Altura acquisition paym
Slide 14: Balance Sheet
2022 Annual Financial Results Balance Sheet • Significant improvement in cash and working capital Jun-22 Jun-21 Change positions as a result of strong operational performance. $M $M $M Year end cash balance of $591.7M, which increases to Cash 591.7 99.7 492.0 $874.2M when irrevocable bank letters of
Slide 15: Strong cash balance following improved operating cashflows
Strong cash balance following improved operating cashflows 1000 $874.2M 1 800 Click to edit cash in bank 600 $M 400 Includes equity raise for Altura acquisition2 200 0 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Quarterly cashflow from operations (incl. bank letters of cred
Slide 16: FY2023 Guidance
FY2023 Guidance Production Unit Operating Cost1 Spodumene Concentrate FY2023 Guidance (FOB Port Hedland ex royalties) Costs are expected to be higher during FY2023 due to elevated strip ratios, and the Ngungaju plant ramp up to ~180-200ktpa (expected September 2022 Qtr). The cost range has been FY20
Slide 17: Market
Market 17
Slide 18: Lithium pricing remains strong
Lithium pricing remains strong Placing Pilbara Minerals in prime position to capitalise on current market conditions, including through the sale of spodumene concentrate from Ngungaju Plant Lithium price chart – Jan 2018 to June 2022 EXW China Hydroxide Global Weighted Av. Hydroxide Spodumene Concen
Slide 19: Lithium deficit is expected to grow
Lithium deficit is expected to grow 7.0 Upside 6.0 Base case 5.0 ~1.8Mt Click to edit LCE deficit Mt LCE (weighted) 4.0 The expected deficit in lithium by 2040 is the equivalent of 3.0 ~18 Pilgangooras 1 with likely pricing implications 2.0 1.0 - 2024 2016 2018 2020 2022 2026 2028 2034 2040 2030 203
Slide 20: Operate
Operate 20
Slide 21: FY22 production and shipments
FY22 production and shipments 140,000 Quarterly spodumene production / shipments (dmt) 120,000 100,000 377,902 dmt 80,000 Click to edit spodumene concentrate produced FY22 60,000 361,035 dmt 40,000 spodumene concentrate shipped FY22 20,000 0 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Produced (dmt) Shipped (dm
Slide 22: BMX auction platform enabling price discovery
BMX auction platform enabling price discovery A new digital sales platform for spodumene concentrate 8,000 BMX price 1 7,000 6,000 Market price2 5,000 4,000 3,000 2,000 1,000 0 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Jul-21 Sep-21 Oct-21 Apr-
Slide 23: Grow
Grow 23
Slide 24: Expansion pathway to 1Mtpa
Expansion pathway to 1Mtpa Accelerated growth to capture improved demand conditions and increase revenue ~1,000 Expansion benefits: P1000 Project P1000 will deliver unallocated 680 Click to edit concentrate capacity of ~400,000tpa P680 Project – FID APPROVED 580 Potential for other value-added produ
Slide 25: Expansion underway at Pilgan Plant
Expansion underway at Pilgan Plant Final investment decision paves way for expansion of Pilgangoora Project 1 P680 - Pilgan Plant additional 100ktpa for $103M Crushing and ore sorting facility $194.5M 1 Primary rejection 3D design model (existing plant infrastructure in greyscale) Integrated crushin
Slide 26: Diversify
Diversify 26
Slide 27: Value-added products to increase margin
Value-added products to increase margin Positioning to capture value throughout the entire lithium raw material and chemical supply chain. Upstream Midstream Downstream Spodumene Lithium Salts Lithium Fine Concentrate >35% Li2O Chemicals Pilgangoora Project Scoping Study e.g. JV with POSCO Proposed
Slide 28: Downstream lithium chemicals JV with POSCO
1,2 Downstream lithium chemicals JV with POSCO • JV to jointly develop and operate a 43,000tpa LHM primary lithium hydroxide chemical processing facility • JV Company formed - POSCO Pilbara Lithium Solutions Co Ltd • Initial 18% equity interest with call option to increase investment in JV to 30% •
Slide 29: Innovating within the lithium supply chain
Innovating within the lithium supply chain Proposed JV with Calix for the development of a mid-stream product (lithium salt) Proposed JV Carbon Click to edit reduction Electric calcination Lithium salt >35% Li2O ~0% waste on site (18% lithium metal) shipped1 Pilgangoora Project Carbon intense SC6: 6
Slide 30: Mid-stream product has potential to access emerging markets
Mid-stream product has potential to access emerging markets Higher concentration of lithium and lower carbon product has the potential to attract interest across the globe Legend Pilgangoora Project China South Korea Germany North America Current markets Future potential markets
Slide 31: Sustainability
y Sustainability y™
Slide 32: 6MW solar plant construction underway
6MW solar plant construction underway A key enabler of our decarbonisation pathway providing an estimated reduction of 9,900t of CO2 emissions 1 Click to edit 1 Refer ASX release 29 October 2021 32
Slide 33: Strelley School Lithium Battery Project
Strelley School Lithium Battery Project • Strelley School and Community are located between Port Hedland and Pilgangoora • Oldest continually operational Independent Aboriginal Community School in Australia Battery Project • • Click to edit Installing a combined 33kW PV and lithium battery storage s
Slide 34: Pilbara Minerals powering forward…
Pilbara Minerals powering forward… Operate Grow Click to edit Diversify Sustainability 34
Slide 35: Questions?
Questions? Follow us on pilbaraminerals.com.au ASX: PLS