Pls Group Limited · ASX:PLS
Pls — Pilbara Minerals — Shareholder Meeting (November 2022)
51 slides from Pls's shareholder meeting presentation, Nov 17, 2022
Slide 1: 2022 Annual General Meeting
For personal use only 2022 Annual General Meeting University Club of Western Australia 17 November 2022 ASX: PLS
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 Thursday 17 November 2022. Not an offer of securities For personal use only This document is provided for informational purposes and does not constitute or co
Slide 3: Important Notices - Forward looking statements
Important Notices Forward looking statements For personal use only 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 r
Slide 4: Important Notices - Financial information
Important Notices Financial information For personal use only 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)” may be used in this presentation which are unaudit
Slide 5: Welcome to Country
For personal use only Welcome to Country Robyn Collard 5
Slide 6: Board and Executive
Board and Executive For personal use only Tony Kiernan AM Click to edit Sally-Anne Layman Steve Scudamore Nick Cernotta Miriam Stanborough NON-EXEC CHAIR NON-EXEC DIRECTOR NON-EXEC DIRECTOR NON-EXEC DIRECTOR NON-EXEC DIRECTOR Dale Henderson Alex Eastwood Brian Lynn Vince De Carolis MANAGING DIRECTOR
Slide 7: Agenda
For personal use only Agenda 1. Chair’s address 2. Meeting procedures 3. Resolutions, proxies and voting 4. Company and project update 5. Questions 7
Slide 8: Chair's Address
For personal use only Chair’s Address Tony Kiernan AM 8
Slide 9: Agenda
For personal use only Agenda 1. Chair’s address 2. Meeting procedures 3. Resolutions, proxies and voting 4. Company and project update 5. Questions 9
Slide 10: Online attendees - How to ask a question
For personal use only Online attendees - How to ask an question • To ask a written question, select the Q & A icon • Select the topic your question relates to from the drop-down list • Type your question in the text box and press the send button • To ask a verbal question, follow the instructions be
Slide 11: Online attendees - How to vote
For personal use only Online attendees - How to vote • When the poll is open, select the vote icon at the top of the screen • To vote, select either For, Against or Abstain • You will see a vote confirmation • To change or cancel your vote, use “click here to change your vote” at any time until the
Slide 12: Agenda
For personal use only Agenda 1. Chair’s address 2. Meeting procedures 3. Resolutions, proxies and voting 4. Company and project update 5. Questions 12
Slide 13: Overview of Proxy Votes
Overview of Proxy Votes For personal use only RESOLUTION FOR AGAINST ABSTAIN DISCRETIONARY Resolution 1 – 1,324,337,578 330,539,410 4,679,963 6,160,599 Remuneration Report 79.73% 19.90% N/A 0.37% Click to edit Resolution 2 – 1,567,078,453 97,834,063 1,685,457 6,326,084 Re-election of Mr Anthony 93.7
Slide 14: Resolution – Remuneration Report
For personal use only Resolution 1 – Remuneration Report To consider and, if thought fit, to pass with or without VOTING INTENTION NUMBER % amendment, as an ordinary resolution the following: Click to edit “That, pursuant to and in accordance with section 250R(2) of the Corporations Act and for all
Slide 15: Resolution – Re-election of Mr Anthony Kiernan as Director
Resolution 2 – Re-election of Mr Anthony Kiernan as Director For personal use only To consider and, if thought fit, to pass with or without VOTING INTENTION NUMBER % amendment, as an ordinary resolution the following: Click to edit “That, pursuant to and in accordance with For 1,567,078,453 93.77% L
Slide 16: Resolution – Re-election of Mr Nicholas Cernotta as Director
Resolution 3 – Re-election of Mr Nicholas Cernotta as Director For personal use only To consider and, if thought fit, to pass with or without VOTING INTENTION NUMBER % amendment, as an ordinary resolution the following: Click to edit “That, pursuant to and in accordance with Listing Rules 14.4 and 1
Slide 17: Resolution - Ratification of Convertible Bonds
Resolution 4 - Ratification of Convertible Bonds For personal use only To consider and, if thought fit, to pass with or without VOTING INTENTION NUMBER % amendment, as an ordinary resolution the following: Click to edit “That, pursuant to and in accordance with Listing Rule 7.4 and for all other pur
Slide 18: Resolution – Issue of Employee Performance Rights to Mr Dale Henderson
Resolution 5 – Issue of Employee Performance Rights to For personal use only Mr Dale Henderson To consider and, if thought fit, to pass with or without VOTING INTENTION NUMBER % amendment, as an ordinary resolution the following: Click to edit “That, pursuant to and in accordance with Listing Rule 1
Slide 19: Resolution – Increase in Non-Executive Directors' Fees
Resolution 6 – Increase in Non-Executive Directors' Fees For personal use only To consider and, if thought fit, to pass with or VOTING INTENTION NUMBER % without amendment, as an ordinary resolution Click to edit the following: For 1,650,622,510 98.85% “That, pursuant to and in accordance with Listi
Slide 20: Agenda
For personal use only Agenda 1. Chair’s address 2. Meeting procedures 3. Resolutions, proxies and voting 4. Company and project update 5. Questions 20
Slide 21: Company and Project overview
For personal use only Company and Project overview 21
Slide 22: FY22 Highlights
For personal use only ASX 100 $874.2M 1 $714.3M 2 Listed company Cash at bank Net cash FY22 Highlights $1.2B $814.5M $561.8M Revenue EBITDA NPAT +577%3 All highlights as at 30 June 2022 1 Cash balance of $591.7M plus $282.4M of irrevocable bank letters of credit for shipments completed up to 30 June
Slide 23: Our strategy
Deliver on our current commitments For personal use only Achieve full potential at Pilgangoora To be a leader in Our the provision of Extract greater value along the battery minerals strategy sustainable supply chain battery mineral products Diversify revenue beyond Pilgangoora 23
Slide 24: FY22 production and shipments
FY22 production and shipments For personal use only 140,000 Quarterly spodumene production / shipments (dmt) 120,000 377,902 dmt Click to edit 100,000 spodumene concentrate produced FY22 80,000 60,000 361,035 dmt 40,000 spodumene concentrate shipped FY22 20,000 0 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Prod
Slide 25: Pilgangoora Project
Pilgangoora Project For personal use only One of the few major hard-rock lithium producers globally Tier 1 asset Two plants with strong growth potential in operation up to ~580,000tpa 1 26 + years 2 processing capacity mine life 1 Up to 580,000tpa of spodumene concentrate in aggregate processing cap
Slide 26: Amazing growth journey with more to come
Mid-stream Project Scoping Amazing growth journey with more to come Study completed with Calix For personal use only POSCO JV finalised Major milestones achieved along the way Pilgan Plant improvements re- Strategic relationship formed with rate capacity to 360-380ktpa POSCO, $79.6M equity investmen
Slide 27: Market
For personal use only Market 27
Slide 28: Lithium pricing remains strong
Lithium pricing remains strong For personal use only Pricing strength places Pilbara Minerals in prime position to captalise on production growth and sale of unallocated offtake Lithium price chart – January 2018 to September 2022 EXW China Hydroxide Global Weighted Av. Hydroxide Spodumene Concentra
Slide 29: Lithium deficit is expected to grow
Lithium deficit is expected to grow For personal use only 7.0 Upside demand case 6.0 Base demand 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 - 2016 2018 20
Slide 30: A significant global supplier of lithium raw materials
A significant global supplier of lithium raw materials For personal use only Lithium brine and hard-rock supply Hard-rock supply only Estimated Global Mined Lithium Supply by corporate control, CY22 (Mineral & Brine, LCE) Estimated Global Mineral Lithium Supply by Corporate Control, CY22 (Mineral, L
Slide 31: Operate
For personal use only Operate 31
Slide 32: Q1 FY23 Highlights
For personal use only $783.7M $1.375B 1 increase in cash balance Cash at Bank Q1 FY23 Highlights 147,105 dmt 138,249 dmt spodumene concentrate spodumene concentrate production sales Refer ASX Announcement 25 October 2022 1 As at 30 September 2022 32 32
Slide 33: Strong production and shipments
Strong production and shipments For personal use only 160,000 140,000 76% increase Click to edit Quarterly spodumene production / shipments (dmt) in production 120,000 100,000 Past year (Q2 FY22 to Q1 FY23) 80,000 60,000 40,000 20,000 0 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Produced (dmt) Shipped (dmt) 33
Slide 34: BMX auction platform enabling price discovery
BMX auction platform enabling price discovery A new digital sales platform for spodumene concentrate For personal use only 10,000 BMX price 1 9,000 8,000 7,000 Market price2 6,000 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-
Slide 35: Cash Management Framework
Cash Management Framework For personal use only Release of Capital Management Framework (inaugural dividend policy) on the back of strong operating performance and cashflows Excess cashflow to be allocated to Click to edit current operations and sustainability, growth and diversification initiatives
Slide 36: Grow
For personal use only Grow 36
Slide 37: Expansion pathway to 1Mtpa
Expansion pathway to 1Mtpa For personal use only Accelerated growth to capture improved demand conditions and increase revenue ~1,000 Expansion benefits: P1000 Project P1000 will deliver unallocated Click to edit (subject to FID) concentrate capacity of up to 680 400,000tpa P680 Project – under cons
Slide 38: Expansion underway at Pilgan Plant
Expansion underway at Pilgan Plant Final investment decision for P680 paves way for expansion of Pilgangoora Project For personal use only 1 P680 - Pilgan Plant additional 100ktpa for $103M Crushing and ore sorting facility $194.5M 1 Primary rejection 3D design model (existing plant infrastructure i
Slide 39: Diversify
For personal use only Diversify 39
Slide 40: Value-added products to increase margin
Value-added products to increase margin For personal use only 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. J
Slide 41: Downstream lithium chemicals JV with POSCO
Downstream lithium chemicals JV with POSCO 1 For personal use only • JV to jointly develop and operate a 43,000tpa LHM primary lithium hydroxide chemical processing facility • JV company formed in South Korea - POSCO Pilbara Lithium Solutions Co Ltd • Initial 18% equity interest with call option to
Slide 42: South Korea – A growing strategic hub
South Korea – A growing strategic hub For personal use only JV with POSCO places Pilbara Minerals at the forefront of the emerging South Korean South Korea lithium chemicals and battery market Lithium chemical and battery producers South Korea Car manufacturers 42
Slide 43: Innovating within the lithium supply chain
Innovating within the lithium supply chain For personal use only 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
Slide 44: Sustainability
For personal use only Sustainability 44
Slide 45: Our culture
Our culture Great For personal use only People Underpinned by ‘What We Stand For’ - six commitments that guide how we work to achieve our Purpose Safety 450 Matters Employees and contractors completed safe Click to edit and respectful behaviours training to date Quality Products Unmute Yourself Valu
Slide 46: Safety matters
Safety matters For personal use only We take responsibility for maintaining a safe and healthy workplace so that everyone comes to work and goes home safely every day 4.2 TRIFR Click to edit as at 30 September 2022 2.35 safety interaction rate month of September 2022 Safety culture built on empower,
Slide 47: Our contribution
Our contribution For personal use only We are passionate about our contribution and strive to make a positive impact in the communities we share Cross cultural awareness training Click Cultural overnight camps to edit Local community school visits Community school battery project 47
Slide 48: 6MW solar plant – commissioning underway
6MW solar plant – commissioning underway For personal use only A key enabler of our decarbonisation pathway providing an estimated reduction of 9,900t of CO2 emissions annually over the contract period 1. Click to edit 1 Refer ASX release 20 October 2021 48
Slide 49: Pilbara Minerals powering forward…
Pilbara Minerals powering forward… For personal use only Operate Grow Diversify Sustainability 49
Slide 50: Agenda
For personal use only Agenda 1. Chair’s address 2. Meeting procedures 3. Resolutions, proxies and voting 4. Company and project update 5. Questions 50
Slide 51: Thank you
For personal use only Thank you Follow us on pilbaraminerals.com.au ASX: PLS
Pilbara Minerals — Shareholder Meeting (November 2022) on 6ix