Pls Group Limited · ASX:PLS
Pls — Pilbara Minerals — Investor Presentation (June 2020)
26 slides from Pls's investor presentation, Jun 17, 2020
Slide 1: Pilgangoora – positioned for the future
Pilgangoora – positioned for the future For personal use only Corporate Presentation – June 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 17/06/2020. 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: About Pilbara Minerals
For personal use only About Pilbara Minerals Lithium Market Update Pilgangoora Project Pathway 4
Slide 5: Pilbara Minerals
Pilbara Minerals For personal use only • $590M1 market cap • ~AUD$108M cash and equivalents2 • 100% owned Pilgangoora Lithium-Tantalum Project • 23-year mine life, at 5Mtpa processing capacity • Products: ‐ ~6% Li2O spodumene concentrate ‐ +5% primary tantalite concentrate • Multi-stage mine expansi
Slide 6: Investment highlights
Investment highlights • Stage 1 currently producing a high quality ~ 6% Li2O spodumene concentrate for key participants delivering For personal use only HIGH QUALITY 1 SPODUMENE PRODUCT to Tier 1 lithium ion cell manufacturers • Tantalite concentrate by-product • One of the largest operating hard ro
Slide 7: Pilgangoora Stage 1 status
Pilgangoora Stage 1 status • Moderated production strategy commenced in June 2019 in response to softer market conditions, which has preserved cash flow and working capital For personal use only • Prudent cash flow management strategy in place • Recent plant modifications have materially improved pr
Slide 8: Our customers and partners supply the biggest and highest quality battery manufacturers
Our customers and partners supply 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 Note:
Slide 9: Who is CATL?
Who is CATL? China’s largest battery For personal use only manufacturer for EVs • Listed on the Shenzhen stock exchange with market cap ~US$46bn1 and available cash of US$3.3bn2 • Three battery manufacturing facilities in China, two main R&D centres in China and Germany, 24,000 staff globally • Annu
Slide 10: Proposed POSCO downstream JV
Proposed POSCO downstream JV • JV term sheet signed with POSCO in Aug 2019 to jointly develop a 40ktpa (LCE) LiOH For personal use only downstream processing facility in South Korea • Pilbara Minerals to initially hold a 21% interest in the incorporated JV, with an option to increase to 30% • A key
Slide 11: Lithium Market Update
For personal use only About Pilbara Minerals Lithium Market Update Pilgangoora Project Pathway 11
Slide 12: Hard rock lithium
For personal use only Hard rock lithium Spodumene concentrate Direct chemical conversion of spodumene concentrate 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 enabling h
Slide 13: Lithium hydroxide to be the key ingredient for future lithium ion batteries
Lithium hydroxide to be the key ingredient for the future of For personal use only lithium ion battery technology Global lithium supply and breakdown of demand by end use 2018 Global lithium supply and breakdown of demand by end use 2035 13 Source: Benchmark Mineral Intelligence (2019)
Slide 14: Spodumene concentrate - consolidating its competitive advantage in hydroxide
Spodumene concentrate - 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 import
Slide 15: Bold moves to create a clean transport future in Europe through EV subsidies
Bold moves being made to create a clean transport future in Europe through EV subsidies For personal use only France England - Subsides of up to - Plans to offer subsidies £3,000 pure EVs, of up to €12,000 considering increase to - Reducing EV prices by £6,000 40% in cases. - £1B investment in new c
Slide 16: EV Adoption
For personal use only EV Adoption Spodumene concentrate Europe set to become the world’s largest EV market during 2020, overtaking 16 China Europe a market that will be dominated by high-nickel cathode battery application, initially sourced via North Asia given the limited European supply chain avai
Slide 17: Lithium raw material demand forecast expected to remain robust
Lithium raw material demand forecast expected to remain robust For personal use only • Both mine and chemical plant expansions have stalled at a critical stage to meet demand growth from 2022 onwards • Majors have pulled back on capital LCE Tonnes commitments awaiting improved market conditions • Co
Slide 18: Forecast lithium chemical demand
Forecast lithium chemical demand - hydroxide / spodumene concentrate implications For personal use only Lithium chemical demand to 2040 >75 Pilgangoora Stage 1 Projects (equivalent) required over the next 20 years >25 Pilgangoora Stage 1 1 x Pilgangoora Projects (equivalent) required LiOH assumed us
Slide 19: Pilgangoora Project Pathway
For personal use only About Pilbara Minerals Lithium Market Update Pilgangoora Project Pathway 19
Slide 20: Pilgangoora project pathway
Pilgangoora project pathway The scale of the resource and reserve at Pilgangoora support continued expansion of the mines capacity, as and when Pilbara’s key partners further develop their chemical conversion capacity For personal use only Upstream Downstream Stage 1: 2Mtpa Stage 2: 5Mtpa POSCO JV S
Slide 21: Stage 2 plant phased expansion
Stage 2 plant phased expansion1 Phase 1 A$60-70M Phase 2 A$20-30M For personal use only Phase 3 A$140-150M Total A$220-250M 1 Based on technical studies and estimated capital costs as per ASX release 27 August 2019. Feasibility studies have not been completed. 21
Slide 22: 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 ~ expansion 40,000tpa downstr
Slide 23: pilbaraminerals.com.au
For personal use only ASX: PLS pilbaraminerals.com.au Follow us on
Slide 24: Offtake for Stage 1 and Stage 2 secured
Offtake for Stage 1 and 2 secured Pilgangoora Mining Operations Pty Ltd For personal use only Stage 1 = ~43Ktpa LCE Stage 2 Spodumene Stage 1 additional 300kt – 350ktpa Stage 1+2 = >110ktpa LCE Production 500kt – 550ktpa Great Wall Yibin Tianyi Great Wall POSCO** Spodumene General Lithium Ganfeng Li
Slide 25: Strong relationships with leading, global partners
Strong relationships with leading, global partners STRATEGIC PARTNER PLS OFFTAKE / EQUITY PARTNERSHIPS CAPACITY (CURRENT AND FUTURE) • Strategic partnership with major • 22kt LCE - Jiangxi and Jiangsu For personal use only China’s third largest Chinese battery industry • Future: 82kt LCE on construc
Slide 26: Globally one of the largest spodumene resources
Globally one of the largest spodumene resources For personal use only Note: Tantalum adjusted resource size includes consideration of the revenue of Tantalum by-product. 26 Source: Company Data