Slide 1: September Quarter FY25 Activities Presentation
30 October 2024 September Quarter FY25 Activities Presentation ASX:PLS
Slide 2: Mission and strategy
Mission and strategy Our ambition To be a leader in the provision of sustainable battery materials products Strategic pillars Operate Grow Chemicals Diversify Deliver our operating Achieve full Extract greater Diversify revenue performance potential of the value along the battery beyond the commitme
Slide 3: September Quarter – key outcomes
September Quarter – key outcomes Strong operational performance and delivery of projects in line with plan Production Sales Costs 220k dmt 215k dmt $606/t produced shipped Unit operating costs (FOB) Growth and Diversification Revenue Optimisation • P680 Crushing and ore sorting in ramp-up • P1000 pr
Slide 4: Health and safety
Operate Grow Chemicals Diversify Health and safety Building the culture, systems and processes to ensure everyone goes home safely every day 4.03 2.81 2.09 Total recordable Significant Injury Quality safety interactions injury frequency Frequency rate2 completed per 1,000 hours rate (TRIFR)1 worked3
Slide 5: Production
Operate Grow Chemicals Diversify Production Performance ahead of expectations while P680 crushing and ore sorting commissioned • Another strong operational quarter: o Production of 220.1k dmt o Sales of 214.5k dmt • Continued strong performance from the P680 primary rejection facility enabled: o Con
Slide 6: Projects
Operate Grow Chemicals Diversify Projects Project delivery continues to be on schedule and on budget P1000 • P1000 Project remains on schedule and budget - ~80% complete at end of September Quarter. • Construction works include the installation of steel modules, pipe racks and thickeners. • Commissi
Slide 7: POSCO chemical processing plant
Operate Grow Chemicals Diversify POSCO chemical processing plant Success achieved in early stages of ramp up 18% Equity interest in a joint venture with POSCO for a 43,000 tpa two train lithium hydroxide monohydrate (LHM) facility in Gwangyang, South Korea. Call option to increase to 30%. Train 1 pr
Slide 8: Transaction to acquire Latin Resources
Operate Grow Chemicals Diversify 1 Transaction to acquire Latin Resources Diversifying revenue beyond Pilgangoora • On-strategy, counter-cyclical transaction to diversify revenue beyond Pilgangoora. • Pilbara Minerals to unlock Salinas’ potential by de- risking funding and development. • Expected to
Slide 9: September Quarter Financials
September Quarter Financials Note: Non-IFRS financial metrics such as “Net Cash” are used throughout the presentation to provide additional information on business performance. Throughout this presentation, amounts may not add due to rounding 9
Slide 10: Sep Qtr FY25 – vs Prior Quarter
Sep Qtr FY25 – vs Prior Quarter Production volume and unit costs reflecting the integration and ramp-up of P680 Summary Operational and Financial Metrics Units Sep Q FY25 Jun Q FY24 (%) • Production volume of 220.1kt was 3% lower than the prior Quarter but exceeded expectations in this integration a
Slide 11: Sep Qtr FY25 – Cash Flow Bridge
Sep Qtr FY25 – Cash Flow Bridge Cash declined largely due to planned capital expenditure Cash flow bridge – 30 June 2024 to 30 September 2024 (A$M) • Cash balance at 30 September 2024 remains strong at 2 $1.4B. 1, 2 220 • Total cash outflow of $274M declining from $1.6B to 22 5 $1.4B largely driven
Slide 12: Market Update and Continued Cost Optimisation
Market Update and Continued Cost Optimisation 12
Slide 13: Growth market and evolving new industry
Growth market and evolving new industry Rapidly evolving market driving pricing volatility Global lithium supply and demand (Kt LCE)1 1,400 • Industry Emergence – Demand and supply growing 1,200 rapidly from a small base to serve the expanding lithium- 1,000 ion battery industry. Electric Vehicle (E
Slide 14: Current pricing unsustainable
Current pricing unsustainable Large portion of lithium supply is estimated to be operating at a loss BMI global lithium cost curve1 compared to spot price (US$/t LCE)2 • Demand – Forecast demand for lithium has grown 20,000 meaningfully during CY24 with an estimated growth of 30% from CY233. 18,000
Slide 15: China leading cost competitive electric vehicles
China leading cost competitive electric vehicles Manufacturing scale and lower battery costs driving cost competitive electric vehicles Lithium-ion battery cost (Kt LCE)1 China EV penetration vs EV cost competitiveness2,3 60% 7,000 Cell Production (GWh) Global Average Cell Cost (US$/kWh) EV higher c
Slide 16: Strong growth fundamentals
Strong growth fundamentals Structural drivers include energy transition, technology adoption and government policy Global lithium supply and demand (Kt LCE)1 6,000 • Industry Emergence – Strong structural drivers fuelling industry emergence. Drivers include technological advancements in e-mobility a
Slide 17: Optimising Pilgangoora
Optimising Pilgangoora To reduce costs and further strengthen Pilbara Minerals’ financial position against lower market prices Pilbara Minerals has • In response to lower prices, the • Pilgan will ramp up to the same nameplate Pilgangoora Operation will be optimised capacity as under the previous P1
Slide 18: P850 operating model
P850 operating model Substantial cash flow improvement for a moderate reduction in production volume FY25: P850 Optimised Operating Model Current P850 Operating Plants (no.) 2 1 ~$200M Total Material Mined ~40 ~30 cash flow (mtpa) improvement3 Number of Fleet1 (no.) 7 4 in FY25 for a moderate reduct
Slide 19: FY25 Guidance – Updated
FY25 Guidance – Updated Guidance updated for P850 Commentary Previous P850 Updated Change: • P850 updated guidance reflects a moderate reduction in FY25 Guidance1 Unit production volume for a reduction in unit costs and Guidance 2 Guidance Midpoint capex. Production volume3 Kdmt 800 – 840 700 – 740
Slide 20: Questions
o Pilbara Minerals Questions 20
Slide 21: Contacts
Contacts Investor Relations James Fuller Group 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 21
Slide 22: Appendices
o Pilbara Minerals Appendices 22
Slide 23: Physicals summary
Physicals summary Total Ore Mined and Processed Units Sep Q FY24 Dec Q FY24 Mar Q FY24 Jun Q FY24 Sep Q FY25 Ore mined wmt 1,411,017 1,618,748 1,535,521 1,841,748 1,388,698 Waste material wmt 7,741,062 7,965,907 7,761,304 7,407,146 8,078,567 Total ex-pit tonnes mined wmt 9,152,078 9,584,655 9,296,82
Slide 24: Important notices
Important notices This document has been prepared by Pilbara Minerals Limited “Pilbara” or “Pilbara Minerals” or the “Company” and is dated 30 October 2024. This document should be read in conjunction with the ASX announcement titled “September 2024 Quarterly Activities Report” released to the ASX o
Slide 25: Important notices
Important notices Important Information regarding Mineral Resources, Ore Reserves and P680, P1000 and P2000 Projects Information in this document regarding production targets and expansions in nameplate capacity of the Pilgangoora Operation in respect of the P680, P1000 (and P850 operating model) an