Pls Group Limited · ASX:PLS
Pls — Pilbara Minerals — Investor Presentation (May 2020)
24 slides from Pls's investor presentation, May 7, 2020
Slide 1: Pilgangoora – positioned for the future of lithium raw material supply
Pilgangoora – positioned for the future of lithium raw material supply For personal use only Corporate Presentation – May 2020 ASX: PLS
Slide 2: Important Notices
Important Notices For personal use only Not an Offer of Securities This document has been independently prepared by Pilbara Minerals Limited (“Pilbara”) and is dated 7/05/2020. This document is provided for informational purposes and does not constitute or contain an offer, invitation, solicitation
Slide 3: Important Notices
Important Notices For personal use only U.S. Securities Laws Any securities issued by Pilbara Minerals have not been and will not be registered by Pilbara Minerals under the United States Securities Act of 1933 (“U.S. Securities Act”). Accordingly, such securities may not be offered or sold in the U
Slide 4: Pilbara Minerals
Pilbara Minerals For personal use only • 100% owned Pilgangoora Lithium-Tantalum Project; low risk location close to all key infrastructure (including port) • >40 year mine life (Stage 1 2mtpa only) reducing to 23-year mine life, at 5Mtpa processing capacity (Stage 2 expansion) • Leading partners; G
Slide 5: Operational journey: moderated production strategy
Operational journey Nameplate production (Stage 1) For personal use only • ~330,000tpa, ~6% Li2O spodumene concentrate • ~321,000lbspa, +5% primary tantalite concentrate Moderated production strategy currently in place in response to soft market conditions • Prudent cash flow management strategy, ma
Slide 6: Operational journey: overall lithia recovery
Operational journey Overall lithia recovery1 since the commencement of Pilgangoora production For personal use only Process plant and mining campaigns currently in progress at Pilgangoora as the Company’s moderated production strategy continues: • exceptional plant performance and recoveries being a
Slide 7: COVID-19 response
OUR PEOPLE OUR OPERATIONS For personal use only • Health checks and screening • Increased sanitation and cleaning • Reduction of people movements procedures • Engagement on personal hygiene, social • Activation of response plans and distancing and personal health procedures responsibilities COVID-19
Slide 8: Our customers and partners supplying the biggest battery manufacturers
Our customers and partners supplying the biggest and highest quality battery manufacturers in the world For personal use only Shipped battery cells for automotives in 2019 (Gwh) 天宜锂业 Yibin Tianyi Source: ‘Shipped Battery Cells for Automotive in 2019’ Roland Zenn compiled from SNE Research 02/2020 No
Slide 9: Lithium hydroxide the product choice of the future
Lithium hydroxide the product choice of the future For personal use only Lithium demand by lithium chemical product – 2015 to 2035 Source: Benchmark Mineral Intelligence (2019) 9
Slide 10: Hard rock spodumene concentrate lithium
For personal use only Hard rock Spodumene concentrate lithium The direct conversion into lithium hydroxide makes hard rock more cost competitive and the preferred feedstock for the emerging high nickel cathode chemistries, which support energy dense batteries that enable extended driving range 10
Slide 11: Spodumene consolidating its competitive advantage in hydroxide
Spodumene consolidating its competitive advantage in hydroxide For personal use only China, and the low-cost spodumene they rely on, is now firmly embedded in the global lithium hydroxide supply chain and growing strongly China, lithium hydroxide exports Korea, lithium hydroxide imports Data Source:
Slide 12: Battery storage markets gaining traction
California residential energy storage installations Battery storage Number of systems markets gaining For personal use only traction Lower cost driving energy storage installation and larger scale facilities Source: BloombergNEF, EIA Global Levelized Cost of Energy (LCOE) Form 861M benchmarks – PV,
Slide 13: Pilgangoora an exceptional growth opportunity
Pilgangoora an exceptional growth opportunity For personal use only UPSTREAM DOWNSTREAM STAGE 1: 2MTPA STAGE 2: 5MTPA STAGE 3: 7.5MTPA* POSCO JV STAGE: Operations STAGE: DFS completed on STAGE: Proposed subject to STAGE: Detailed Term Sheet, original Stage 2 project, staged market demand subject to
Slide 14: Positioning Pilbara Minerals for market recovery
Positioning Pilbara Minerals for market recovery For personal use only WORLD CLASS MODERATED MASSIVE GROWTH IMPROVED LITHIA LITHIUM -TANTALUM PRODUCTION POTENTIAL WITH RECOVERIES AND PROJECT IN STRATEGY IMPROVED OPERATING COSTS PREMIUM MINING CONSERVING DEMAND JURISIDCTION CASH 14
Slide 15: pilbaraminerals.com.au
For personal use only ASX: PLS pilbaraminerals.com.au Follow us on
Slide 16: Key infrastructure and values
VALUES ENVIRONMENT LOW-COST PROXIMITY TO MARKET For personal use only POLITICALLY STABLE SOCIALLY RESPONSIBLE KEY INFRASTRUCTURE GROWTH WA HARD ROCK LITHIUM IS THE FUTURE CONFLICT FREE QUALITY PRODUCTS STABLE GOVERNANCE LEADING PARTNERS SUSTAINABILITY DIVERSITY LOW SOVEREIGN RISK SAFETY 16
Slide 17: Strong relationships with leading, global partners
Strong relationships with leading, global partners CAPACITY (CURRENT AND STRATEGIC PARTNER PLS OFFTAKE / EQUITY PARTNERSHIPS FUTURE) For personal use only • Strategic partnership with major Chinese • 22kt LCE - Jiangxi and Jiangsu China’s fourth largest battery industry participants • Future: 82kt L
Slide 18: Lithium raw material demand only just beginning
Lithium raw material demand only just beginning For personal use only Long-term lithium chemicals supply forecast 2015 to 2035 Source: Benchmark Mineral Intelligence (2019) 18
Slide 19: Battery technology of the future
Battery technology of the future For personal use only Global lithium supply and breakdown of demand by end use 2018 Global lithium supply and breakdown of demand by end use 2035 19 Source: Benchmark Mineral Intelligence (2019)
Slide 20: European market, EVs gaining traction
European market, EVs gaining traction For personal use only Quarterly EV sales in top European markets Volkswagen Group – expected BEV volumes by region1 VW targeting European markets Source: ACEA Quarterly Alternative Fuel Vehicle Registrations Source: InsideEVs website (May 2019) 20
Slide 21: Car manufacturers gearing up for an electric future
Car manufacturers gearing up for an For personal use only electric future All new cars launched by Volvo will be partially or completely battery- powered Over the next 10 years VW will be launching 70+ new pure EVs By 2023, BMW will offer 25 electrified models 21
Slide 22: Long term contracts to secure supply
Long term contracts to secure supply For personal use only Volkswagen Volvo Toyota BMW 10+ year battery 10-year lithium Half of global sales By 2023, BMW will supply agreement LG supply agreement (10M in 2019) to be offer 25 electrified Chem and CATL with Ganfeng Lithium electric vehicles by models
Slide 23: Superbowl EV commercials
Superbowl EV commercials For personal use only Big spending by car manufacturers to advertise their electric vehicle models at this year’s Superbowl • Competition is heating up as EV brands grow (especially Tesla) and their sales steal market Porsche – Taycan Tubo S GMC – Hummer EV share • Imperativ
Slide 24: Positioning to capitalise on the future
Positioning to capitalise on the future For personal use only Produce Grow Diversify • Achieve annual nameplate • Complete studies and secure • Finalise JV with POSCO to production capacity funding for incremental Stage 2 develop and operate a 330,000dmt of high-quality 6% expansion. 40,000tpa downs