Pls Group Limited · ASX:PLS
Pls — Pilbara Minerals — Q2 FY2024 Earnings Presentation
26 slides from Pls's earnings presentation, Jan 24, 2024
Slide 1: December Quarter FY24 Activities Presentation
For personal use only 24 January 2024 December Quarter FY24 Activities Presentation ASX:PLS
Slide 2: Delivering our strategy
Delivering our strategy For personal use only Lorem ipsum re pe sincid et ut provit unt eicto odit rem qui ni Operate amust am, voluptas aut que ne cum faccae moluptatem Deliverfuga. our operating performance Quis ab ius, ati commitments auditatquiae ex expedio To be a leader Grow nemquia tendus. in
Slide 3: Quarter highlights
Quarter highlights For personal use only PRODUCTION SALES COST REDUCTION 22% 9% 14% 176.0 kt 159.9 kt $639/t produced shipped FOB1 GROWTH CHEMICALS OFFTAKE P680 Expansion POSCO JV Existing offtake Primary Rejection Train 1 commenced with Ganfeng Facility fully commissioning amended to increase integ
Slide 4: Operate
For personal use only Operate 4
Slide 5: Health and safety
Health and safety For personal use only 3.35 total recordable injury frequency rate (TRIFR)1 2.0 quality safety interactions 2 completed per 1,000 hours worked (target 1.0) 1 Rolling 12-month indicator as at 31 December 2023. 2 Quality safety interactions is a leading indicator. The measurement is b
Slide 6: Production increasing as planned
Production increasing as planned For personal use only Quarter on quarter performance 200,000 175,969 • Pilgangoora Operation’s production 159,897 increased as planned following a 15% 160,000 Quarterly spodumene production / shipments increase in ore mined and the ramp-up of the Primary Rejection Fa
Slide 7: Grow
For personal use only Grow 7
Slide 8: P680 Expansion Project - Crushing and ore sorting facility construction underway
P680 Expansion Project - Crushing and ore sorting facility construction underway For personal use only • Civil and concrete works completed. • Structural, mechanical, piping, and electrical and instrumentation installation contract awarded. • Majority of long-lead orders delivered to site or in WA.
Slide 9: P1000 Expansion Project - Under construction
P1000 Expansion Project - Under construction For personal use only • Progressing on schedule. • Detailed design completed to support construction and fabrication packages. • Bulk earthworks progressed. • Contracts for concrete construction and steel fabrication awarded. • Long lead mechanical equipm
Slide 10: Drill program progressed
Drill program progressed For personal use only • Pilgangoora Operation drilling program continued to focus on extensions of modelled pegmatite domains. • Reverse circulation and diamond drill program continued with 11,953m completed in the December quarter. • Significant intervals of pegmatite miner
Slide 11: Chemicals
For personal use only Chemicals 11
Slide 12: Strategically positioned to capture value across the supply chain
Strategically positioned to capture value across the supply chain For personal use only Upstream Mid-Stream Downstream Spodumene concentrate Lithium enriched product Lithium hydroxide ~5.2% >16% >99% purity lithia content1 lithium metal technical grade battery grade 2 3 1. Av erage grade of spodumen
Slide 13: Downstream chemicals facility with POSCO
Downstream chemicals facility with POSCO For personal use only 18% equity interest with call option to increase to 30% in a 43,000 tpa lithium hydroxide facility in Gwangyang, South Korea in joint venture with POSCO. Train 1 commissioning commenced and expected to be materially completed in the Marc
Slide 14: December Quarter Financials
For personal use only December Quarter Financials 14
Slide 15: Dec Qtr FY24 – Operational and Financial Metrics
Dec Qtr FY24 – Operational and Financial Metrics For personal use only Summary Operational and Financial Metrics1 Units Sep Q FY24 Dec Q FY24 (%) • Revenue declined 46% compared to prior Quarter to $264M, reflecting a 50% decline in average realised price partly offset by a 9% increase in sales volu
Slide 16: H1 FY24 – Operational and Financial Metrics
H1 FY24 – Operational and Financial Metrics For personal use only Summary Operational and Financial Metrics1 Units H1 FY23 H1 FY24 (%) • Revenue declined 65% to $757M in H1 FY24 driven by a 67% reduction in the average realised price compared to the prior corresponding period. Production volume kt 3
Slide 17: Dec Qtr FY24 – cash flow bridge
Dec Qtr FY24 – cash flow bridge For personal use only Cashflow bridge – 30 September 2023 to 31 December 2023 • The Group generated strong and positive cash margin from operations even at the December Quarter lower Cash Margin from Operations: average realised price of US$1,113/t. $176M 1 • Cash mar
Slide 18: Preserving Balance Sheet Strength
Preserving Balance Sheet Strength For personal use only Strong balance sheet Investment Strategy with $2.1B of cash – • Investment in P680 and P1000 Projects to continue - fully funded, gives rise to lower unit costs and puts Pilbara Minerals in an even stronger PLS well positioned position to benef
Slide 19: Market
For personal use only Market 19
Slide 20: Growth in global EV sales drive long-term demand for lithium
Growth in global EV sales drive long-term demand for lithium For personal use only Global EV sales Annual lithium demand 60 6,000 50 5,000 40 4,000 CAGR 24% (estimate) CY23 - CY28 Millions Kt LCE 30 59.1 3,000 31% growth 20 CY22 - CY23 2,000 36.1 10 1,000 13.8 10.5 6.6 3.3 0 - 2020 2021 2022 2023 20
Slide 21: Questions
For personal use only Questions 21
Slide 22: Contacts
Contacts For personal use only Investor Relations James Fuller Manager, Investor Relations T: +61 (0) 488 093 763 James.Fuller@pilbaraminerals.com.au Media Michael Vaughan Fivemark Partners T: +61 (0) 422 602 720 22
Slide 23: Appendices
For personal use only Appendices 23
Slide 24: Physicals summary
Physicals summary For personal use only Total Ore Mined and UNITS Mar Q FY23 June Q FY23 Sep Q FY24 Dec Q FY24 H1 FY23 H1 FY24 Processed Ore mined wmt 1,225,563 1,271,150 1,411,017 1,618,748 2,538,284 3,029,765 Waste material wmt 6,572,687 7,311,878 7,741,062 7,965,907 12,901,285 15,706,969 Total ma
Slide 25: Important notices
Important notices This document has been prepared by Pilbara Minerals Limited (“Pilbara” or “Pilbara Minerals” or the “Company”) and is dated 24 January 2024. For personal use only Not an offer of securities This document is prov ided f or inf ormational purposes and does not constitute or contain a
Slide 26: Important notices
Important notices Im portant Information regarding Mineral Resources, Ore Reserves and P680 and P1000 Projects For personal use only Inf ormation in this presentation regarding expansions in nameplate capacity of the Pilgan Plant in respect of the P680 and P1000 projects are unde rpinned by the Comp