Pls Group Limited · ASX:PLS
Pls — Pilbara Minerals — POSCO Green Materials Forum 2022
28 slides from Pls's conference presentation, Nov 1, 2022
Slide 1: A leading lithium materials producer in partnership with POSCO
For personal use only A leading lithium materials producer in partnership with POSCO POSCO Green Materials Forum 2022, South Korea Dale Henderson, MD/CEO 1 November 2022 ASX: PLS
Slide 2: Important Notices
Important Notices Not an offer of securities This document has been prepared by Pilbara Minerals Limited (“Pilbara” or “Pilbara Minerals” or the “Company”) and is dated Tuesday 1 November 2022. This document is provided for informational For personal use only purposes and does not constitute or cont
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: Pilbara Minerals
Pilbara Minerals Leading ASX-listed lithium company, with 100% ownership of the largest independently owned hard-rock lithium operation in the world For personal use only ASX 100 $1.375B 1 Listed company Cash at Bank Strong September Quarter Performance $783.7M 147,105 dmt 138,249 dmt increase in ca
Slide 6: 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 7: Amazing growth journey with more to come
Amazing growth journey with more to come For personal use only Mid-stream project Scoping Major milestones achieved along the way Study completed with Calix POSCO JV finalised Strategic relationship formed with POSCO, $79.6M equity investment, Pilgan Plant improvements re- offtake and JV opportunity
Slide 8: Our partnership journey with POSCO
Our partnership journey with POSCO For personal use only Strong relationship built over the past four years POSCO strategic relationship formed - $79.6M equity investment - 240ktpa spodumene offtake - 30ktpa LHM chemical conversion Shareholders’ Agreement facility JV opportunity South Korea for JV f
Slide 9: 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 10: South Korean Market
For personal use only Market South Korean 10
Slide 11: 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 11
Slide 12: Global Market
For personal use only Global Market 12
Slide 13: Lithium pricing remains strong
Lithium pricing remains strong For personal use only The POSCO-Pilbara Minerals JV is in prime position to capitalise on current market conditions Lithium price chart – Jan 2018 to September 2022 EXW China Hydroxide Global Weighted Av. Hydroxide Spodumene Concentrate $90,000 $6,000 Click to edit $80
Slide 14: Lithium deficit is expected to grow
Lithium deficit is expected to grow For personal use only 7.0 Upside 6.0 Base 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 2020 2022 2024 2026 2
Slide 15: A significant global lithium raw material supplier
A significant global lithium raw material supplier 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, LCE)
Slide 16: Operate
For personal use only Operate 16
Slide 17: 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) 17
Slide 18: BMX auction platform enabling price discovery
BMX auction platform enabling price discovery A new digital sales platform for spodumene concentrate For personal use only 9,000 BMX price 1 8,000 7,000 6,000 Market price2 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-22 Aug-
Slide 19: Grow
For personal use only Grow 19
Slide 20: 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 21: 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 22: Diversify
For personal use only Diversify 22
Slide 23: 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 24: 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 25: Sustainability
For personal use only Sustainability 25
Slide 26: 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 26
Slide 27: Pilbara Minerals powering forward…
Pilbara Minerals powering forward… For personal use only Operate Grow Diversify Sustainability 27
Slide 28: Thank you
For personal use only Thank you Follow us on pilbaraminerals.com.au ASX: PLS