Pls Group Limited · ASX:PLS
Pls — Pilbara Minerals — Merger or Acquisition (August 2024)
34 slides from Pls's merger presentation, Aug 15, 2024
Slide 1: Pilbara Minerals to acquire Latin Resources
15 August 2024 Pilbara Minerals to acquire Latin Resources To be read in conjunction with ASX announcement “Pilbara Minerals to acquire Latin Resources” released 15 August 2024 ASX:PLS
Slide 2: Important information & disclaimer
Important information & disclaimer IMPORTANT - You must read the following before continuing This is a joint presentation (Presentation) by Pilbara Minerals Limited (Pilbara Minerals) and Latin Resources Limited (Latin) dated 15 August 2024. This Presentation has been prepared in relation to the pro
Slide 3: Important information & disclaimer (cont.)
Important information & disclaimer (cont.) Effect of rounding Unless otherwise stated, all dollar values are in Australian dollars ($). A number of figures, amounts, percentages, estimates, calculations of value and fractions in this Presentation are subject to the effect of rounding. Accordingly, t
Slide 4: Important information & disclaimer (cont.)
Important information & disclaimer (cont.) JORC Compliance Statements Production targets Pilbara Minerals Information in this Presentation regarding production targets, forecast financial information based on production targets and expansions in nameplate capacity of the Pilgangoora Operation in res
Slide 5: All share mutually beneficial transaction
All share mutually beneficial transaction 1 On-strategy, counter-cyclical transaction to diversify revenue beyond Pilgangoora 2 Pilbara Minerals unlocks Salinas’ value by de-risking funding and development 3 Expected to be accretive to Pilbara Minerals shareholders 4 Delivers second 100% owned, expe
Slide 6: Pilbara Minerals' Mission and Strategy
Pilbara Minerals’ Mission and Strategy OUR AMBITION Operate Grow Chemicals Diversify STRATEGIC PILLARS Deliver our operating Achieve full Extract greater value Diversify revenue performance potential of the along the battery beyond the commitments Pilgangoora asset materials supply chain Pilgangoora
Slide 7: Strong demand for lithium driven by clean energy solutions
Strong demand for lithium driven by clean energy solutions 6,000,000 Expected deficit in lithium by Global investment in energy2 2040 is the equivalent of 2000 5,000,000 11– 19 Pilgangooras 1 4,000,000 dependent on potential Investment in 1500 clean energy now supply coming online almost double 3,00
Slide 8: Transaction summary
Transaction summary Transaction structure • Pilbara Minerals to acquire 100% of Latin Resources by way of a scheme of arrangement (Scheme)1 • Each Latin Resources shareholder will receive 0.07 new Pilbara Minerals shares for each Latin Resources share held Transaction consideration and pro-forma own
Slide 9: On-strategy transaction
On-strategy transaction Counter-cyclical transaction which benefits both shareholder groups – Pilbara Minerals intends to align future development and production in response to market conditions Pilbara Minerals’ inorganic growth strategy drivers Competitive advantage – Value creation Geopolitical /
Slide 10: Salinas Lithium Project at a glance
at a glance Latin Resources’ Salinas Lithium Project (Salinas) is an advanced stage, Tier 1, hard-rock lithium development project located in an attractive mining jurisdiction Location Production BRAZIL • Located in Lithium Valley, in the State of • Potential to become a top 10 hard-rock Salinas Min
Slide 11: Benefits to Latin Resources shareholders
Benefits to Latin Resources shareholders A Immediate upside through the delivery of an attractive premium to recent trading prices in Latin Resources B Ongoing exposure to the development of Salinas through holding shares in Pilbara Minerals Salinas funding and development risk significantly mitigat
Slide 12: Strategic rationale for Pilbara Minerals
Strategic rationale for Pilbara Minerals 1 On-strategy, counter-cyclical transaction expected to be accretive across a range of key metrics 2 Diversification of current operations by adding a second potential operating platform in an emerging lithium region 3 Continued exposure to Tier 1 assets thro
Slide 13: On-strategy, accretive transaction
1 On-strategy, accretive transaction Salinas has the potential to contribute up to ~30% of pro-forma production at Salinas’ steady state production levels at a cost base that is expected to be competitive against Pilgangoora1 38% accretive to Pilbara 12% accretive to Pilbara Potential Production (kt
Slide 14: Diversification of current operations
2 Diversification of current operations North American + Downstream joint venture (18%)1 European Markets Asian + Middle Eastern Markets Salinas (100%) Pilgangoora (100%) LOM avg. +10 years3 PEA study DMS (Stage 1) LOM avg. 34 years4 Producing DMS & Float production production ~499ktpa ~1,060ktpa Re
Slide 15: Continued exposure to Tier 1 assets
3 Continued exposure to Tier 1 assets… Salinas is one of the world’s largest undeveloped hard-rock lithium deposits and the largest in Brazil Colina deposit Mineral Resource • Total of 297 diamond drill holes for 98,958m have been incorporated into the MRE • 70.9Mt @ 1.25% Li2O total M,I&I Resource
Slide 16: … with top production potential
3 … with top 10 production potential Select hard-rock lithium projects production (ex. Africa, SC5.2)1,2,3,4 1,060 499 Keliber Wodgina Salinas James Bay Abitibi Hub Mt Holland Barroso Greenbushes Pilgangoora (P1000) Mt Marion Rose Bald Hill Carolina Lithium Manna Grota do Cirilo Kathleen Valley Pion
Slide 17: In an attractive national mining jurisdiction…
4 In an attractive national mining jurisdiction… Minas Gerais is Brazil’s 3rd largest economy and host to 300+ operating mines Brazil mining sector overview 1 Minas Gerais is a pro mining State B R AZ I L Revenue Minerals produced ~US$45 billion per annum2 >90 commodities Taxes & tributes Companies
Slide 18: …in a pro mining state…
4 …in a pro mining state… Pilbara Minerals’ assessment of Minas Gerais vs. Western Australia More attractive Less attractive Minas Gerais Western Australia # of operating mines1 300+ 134 # of operating lithium mines2 3 8 Power Hydro-backed grid Grid, gas, diesel & renewables Corporate tax rate3 15%
Slide 19: …with established infrastructure…
4 …with established infrastructure… Salinas project location Roads Power • Hydro-backed power grid • Site serviced by industrial corridors • Aimorés Hydro facility services Salinas • Mature trucking industry • No PPA required • Sealed roads to site • Favourable electricity costs Water Port • Export
Slide 20: … providing near-term production optionality
4 … providing near-term production optionality Salinas project status Sigma Lithium – Grota do Cirilo Phase 1 case study Completed PEA completed (2023) Mineral Resource upgrade (May 2024) Brazilian Government Optimised DFS Phase 1 DFS issue the New Lithium completed Decree Future Phase 1 funding Pha
Slide 21: Attractive hard-rock operation
5 Attractive hard-rock operation Pilbara Minerals will leverage its significant in-house technical expertise to de-risk development and optimise Salinas to create additional value Mining • Single open pit, hard-rock mine • Drill, blast and haul operation • Skilled local labour force and mining contr
Slide 22: Exposure to key battery markets
6 Exposure to key battery markets Salinas’ strategic location and uncommitted offtake will enhance Pilbara Minerals’ opportunity to diversify into the growing North America and European battery markets Total battery demand expected to grow from 877 GWh pa in 2024 to 2,979 GWh pa by 2030 US & Canada
Slide 23: Financial flexibility for growth
7 Financial flexibility for growth The 100% scrip transaction preserves Pilbara Minerals’ strong net cash position and ensures it remains well capitalised to execute on its growth pipeline Prudent approach Strong Operating New funding Growth to acquisition funding balance sheet cash flow options opt
Slide 24: All share mutually beneficial transaction
All share mutually beneficial transaction On-strategy, counter-cyclical transaction to diversify revenue beyond 1 Pilgangoora 2 Pilbara Minerals unlocks Salinas’ value by de-risking funding and development 3 Expected to be accretive to Pilbara Minerals shareholders 4 Delivers second 100% owned, expe
Slide 25: Thank you
Thank you Pilbara Minerals Latin Resources Investor Relations Media James Fuller Fiona Marshall Manager, Investor Relations Senior Communications Advisor T: +61 (0) 488 093 763 White Noise Communications James.Fuller@pilbaraminerals.com.au T: +61 400 512 109 fiona@whitenoisecomms.com Media Michael V
Slide 26: Key transaction information
Key transaction information 26
Slide 27: Indicative timetable
Indicative timetable1 Event Date First Court Date Mid October 2024 Dispatch of Scheme Booklet to Latin Resources shareholders Mid October 2024 Scheme Meeting Mid November 2024 Second Court Date Mid / late November 2024 Effective Date Late November 2024 Scheme Record Date Late November / early Decemb
Slide 28: Pro-forma snapshot
Pro-forma snapshot Pilbara Minerals Latin Resources Pro-forma Share price (14-Aug-24) A$/sh 2.85 0.120 2.85 Basic shares outstanding m 3,011 2,799 3,2161 Market capitalisation A$m 8,581 336 9,167 Cash (30-Jun-24)2 A$m 1,626 21 1,647 Debt (30-Jun-24)2 A$m 447 - 447 Enterprise value A$m 7,401 315 7,96
Slide 29: Supporting Information
@ Pilbara 7 Minerals MOLLATIN Supporting Information 29
Slide 30: Salinas PEA highlights
Salinas PEA highlights PEA completed by Latin Resources in September 2023 with DFS underway and to be optimised by Pilbara Minerals Mining inventory and mine life • Latin Resources’ PEA defined an initial mine life of 11 years Parameter PEA Result1 • Resource upgrade of ~60% to 77.7Mt @ 1.24% Li2O2
Slide 31: Latin Resources – corporate overview
Latin Resources – corporate overview Key management Board of Directors Register analysis Aaron Maurer Anthony Greenaway Board holdings and key Chief Operating Officer VP of Operations – Americas Christopher Gale shareholders Managing Director Mr Maurer career includes key roles at Mineral Senior geo
Slide 32: Latin Resources Mineral Resource
Latin Resources Mineral Resource Salinas Mineral Resource Estimate (reported above a 0.50% Li2O cut-off grade)1,2 Deposit Resource Category Tonnes (Mt) Grade (Li2O %) Li2O (kt) Contained LCE (kt) Measured 28.64 1.31% 375.2 927.8 Indicated 38.63 1.23% 475.1 1,175.0 Colina Measured + Indicated 67.27 1
Slide 33: Pilgangoora Mineral Resource and Ore Reserve
Pilgangoora Mineral Resource and Ore Reserve 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 10
Slide 34: Supporting data: Select hard-rock lithium projects production capacity
Supporting data: Select hard-rock lithium projects production capacity (slide 16) Project Production (kt, SCx) Concentrate Grade (%) Production (kt, SC5.2) Announcement Date Announcement Title Greenbushes 2,000 6.0% 2,308 31 Aug 23 2023 Annual Report to Shareholders Pilgangoora (P1000) 1,060 5.2% 1,
Pilbara Minerals — Merger or Acquisition (August 2024) on 6ix