Pls Group Limited · ASX:PLS
Pls — Pilbara Minerals — Shareholder Meeting (November 2024)
31 slides from Pls's shareholder meeting presentation, Nov 26, 2024
Slide 1: 2024 Annual General Meeting
26 November 2024 2024 Annual General Meeting ASX:PLS
Slide 2: Acknowledgement of Country
Acknowledgement of Country Pilbara Minerals acknowledges the Traditional Owners of the land on which we meet, the Whadjuk Noongar people, and pay our respect to Elders past and present. We also acknowledge the Traditional Owners of the land on which our Pilgangoora Operation is located, the Nyamal P
Slide 3: Management presentation: Dale Henderson
Management presentation Dale Henderson Managing Director & CEO 9
Slide 4: A global lithium materials supplier
A global lithium materials supplier Operate 100% ownership of Tier 1 asset with ~33 year mine life1 Grow Pilgangoora expansion well advanced with P850 optimised model2 to reduce costs Chemicals Integration into battery materials supply chain via POSCO JV and Ganfeng study Diversify Latin Resources a
Slide 5: Pilbara Minerals growing with the market
Pilbara Minerals growing with the market ASX 50 Company, ~A$8bn market capitalisation. Over the past five-years the share price has grown by +800% Pilbara Minerals five-year share price performance $6.00 29-Mar-23: 21-Dec-21: P1000 FID 6-Oct-21: Pilgangoora & 46% increase Mid-stream 21 Jun 24: $5.00
Slide 6: Lithium market development
Lithium market development 12
Slide 7: Growth market and evolving new industry
Growth market and evolving new industry Small supply deficit led to significant price movement Global lithium supply and demand (Kt LCE)1 1,400 Supply < Demand ~4% LCE supply deficit1 (combined volume CY21 1,200 and CY22) 1,000 800 600 400 200 - 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Supp
Slide 8: Large pricing responses
Large pricing responses Pricing responses historically volatile Spodumene concentrate price (SC6.0%, CIF China basis)2 7,000 Supply < Demand ~4% LCE supply deficit1 (combined volume CY21 6,000 and CY22) 5,000 4,000 3,000 2,000 1,000 0 1 Source: BMI Lithium Forecast Q3 2024 2 Source: Daily average of
Slide 9: Lithium pricing evolving
Lithium pricing evolving Underlying pricing references remain fluid Historic lithium pricing 1, 2 90,000 7,000 80,000 6,000 70,000 5,000 Spodumene concentrate (US$/t) 60,000 Lithium chemical (US$/t) 50,000 4,000 40,000 3,000 30,000 2,000 20,000 1,000 10,000 0 0 Jan 18 Jan 19 Jan 20 Jan 21 Jan 22 Jan
Slide 10: Current pricing unsustainable
Current pricing unsustainable Large portion of lithium supply is estimated to be operating at a loss Excess supply3 BMI global lithium cost curve1 compared to spot price (US$/t LCE)2 20,000 18,000 16,000 14,000 12,000 SMM Spot Price (Exc. VAT, 19-Nov-24) Operating at a loss 10,000 8,000 6,000 4,000
Slide 11: Battery costs reducing and production growing
Battery costs reducing and production growing Manufacturing scale and lower battery costs driving cost competitive electric vehicles Lithium-ion battery cost (Kt LCE)1 Cell Production (GWh) Global Average Cell Cost (US$/kWh) 1,600 250 1,400 200 1,200 1,000 150 800 100 Battery cell cost falls 600 bel
Slide 12: China EV lower cost than ICE
China EV lower cost than ICE Manufacturing scale and lower battery costs driving cost competitive electric vehicles China EV penetration vs EV cost competitiveness1,2 60% 7,000 EV higher cost compared to ICE EV lower cost compared to ICE 6,000 50% 5,000 Cost comparison BEV v ICE vehicles 4,000 40% 3
Slide 13: Government support
Government support Government transition targets for ICE and EVs1 EU 55% CO2 emission reductions for new cars and 50% for new vans from 2030 to 2034 compared to 2021 levels. 100% CO2 UK emission reductions for both new cars and Government targets all new vans and vans from 2035. The EU agreed to per
Slide 14: Sustained growth in key end uses
Sustained growth in key end uses Demand or EV’s and batter storage growing strongl Battery demand by all end use market (%)1 Global EV sales2 (Thousand units) 7% 18,000 8% 10% 13% 15% 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Other Portab
Slide 15: 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 5,000 4,000 3,000 2,000 1,000 - 2024 2030 2035 2040 Supply Demand 1 Source: Benchmark Mineral Intelligence Lithium Forecast Q3 2024. 21
Slide 16: Pilbara Minerals – Growing with the market
Pilbara Minerals – Growing with the market 22
Slide 17: 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 18: FY24 operational and financial highlights
Operate Grow Chemicals Diversify FY24 operational and financial highlights OPERATE GROW CHEMICALS DIVERSIFY Record production of P680 crushing and POSCO JV on Proposed 725,329dmt ore sorting facility schedule with Train acquisition of commissioned 1 in ramp up Latin Resources1 EBITDA margin of Const
Slide 19: FY24 sustainability highlights
Operate Grow Chemicals Diversify FY24 sustainability highlights Valuing Sustainable Responsible and our people operations ethical actions • Safety focus - 1.72 quality • Released • UN Global Compact safety interactions1 and Power Strategy3 Participant 3.41 TRIFR2 • Developed • Launched Reconciliatio
Slide 20: P850 operating model
Operate Grow Chemicals Diversify 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.)
Slide 21: Portfolio sales strategy
Operate Grow Chemicals Diversify Portfolio sales strategy Diversified sales approach with established battery chemicals participants Battery Chemicals Partner Downstream Offtake Spot Sales Integration Long-term Medium-term POSCO Ganfeng (potential1) Yahua Chengxin Yibin Tianyi General Lithium Other
Slide 22: Projects
Operate Grow Chemicals Diversify Projects Project delivery continues to be on schedule and budget P680 Project P1000 Project Crushing and ore sorting facility ramp up on schedule. On schedule – 91% construction complete as at 17 November 2024. P1000 processing plant footprint Image: Crushing and ore
Slide 23: Operate Grow Chemicals Diversify
Operate Grow Chemicals Diversify 29 29
Slide 24: POSCO chemical processing plant
Operate Grow Chemicals Diversify POSCO chemical processing plant Success achieved in early stages of ramp up 30
Slide 25: Transaction to acquire Latin Resources
Operate Grow Chemicals Diversify Transaction to acquire Latin Resources 1 Diversifying revenue beyond Pilgangoora • On-strategy, counter-cyclical transaction to diversify revenue beyond Pilgangoora. • Pilbara Minerals to unlock Salinas’ potential b de- risking funding and development. • Expected to
Slide 26: Positive future with more to come…
Positive future with more to come… 32
Slide 27: Thank you
Sy Pilbara Minerals Thank you 41
Slide 28: 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 42
Slide 29: Appendices
Sy Pilbara Minerals Appendices 43
Slide 30: Important notices
Important notices This document has been prepared by Pilbara Minerals Limited (“Pilbara” or “Pilbara Minerals” or the “Company”) and is dated 26 November 2024. Not an offer of securities This document is provided for informational purposes and does not constitute or contain an offer, invitation, sol
Slide 31: 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
Pilbara Minerals — Shareholder Meeting (November 2024) on 6ix