Pls Group Limited · ASX:PLS
Pls — Pilbara Minerals — The BMO 29th Global Metals & Mining Conference 2020
24 slides from Pls's conference presentation, Feb 24, 2020
Slide 1: Pilgangoora – positioned for the future
Pilgangoora – positioned for the future For personal use only Ken Brinsden, Managing Director/CEO The BMO 29th Global Metals & Mining Conference – 25 February 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 24/02/2020. 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: Pilbara Minerals
For personal use only Pilbara Minerals • ASX200, $690M1 market cap • 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 expansion and targeted downstream
Slide 5: Operational journey
Operational journey Nameplate production For personal use only • ~330,000tpa, ~6% Li2O spodumene concentrate • ~321,000lbspa, +5% primary tantalite concentrate Moderated production strategy in response to current market conditions • Prudent cash flow management strategy • Latest production campaign
Slide 6: Operational journey
Operational journey For personal use only Overall lithia recovery1 since the commencement of Pilgangoora production Optimisation: Recent campaigns steady state lithia recovery2 80% 80% 30% Spodumene concentrate grade 75% 24% 70% 70% 18% Lithia recovery 65% Commercial production achieved 1 April 2019
Slide 7: Half-year physical results
Half-year physical results For personal use only Total ore mined and processed Units Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Ore mined wmt 762,531 540,426 640,173 303,177 65,941 Waste mined wmt 2,154,690 2,445,917 1,900,027 868,441 26,046 • Production moderation strategy, Total material mined wmt 2,
Slide 8: Half-year results
For personal use only • Moderated production strategy preserved cash flow and working capital, resulting in an improvement in cash gross margin1 in Q4 2019 to $11.5M (Q3 2019: cash gross margin loss of $13.3M) through the utilisation of existing stockpiles and operating cost reductions. Consolidated
Slide 9: Strong balance sheet underpins operations
Strong balance sheet underpins operations For personal use only Cash flow analysis - half-year ended 31 December 2019 A$M • Cash balance of $105.5M and working capital $94.8M (as at 31 Dec 19) • Moderation strategy results in net $0.5M cash outflow associated with operating activities conducted duri
Slide 10: Lithium supply chain stocks appreciating
Lithium supply chain stocks appreciating Three-month share price performance lithium industry participants For personal use only Normalised as of 1st Nov 2019 10
Slide 11: Lithium raw material demand only just beginning
Lithium raw material demand only just beginning For personal use only Long-term lithium chemicals supply forecast 2015 to 2035 Source: Benchmark Mineral Intelligence (2019) 11
Slide 12: Our customers and partners supplying the biggest battery manufacturers
Our customers and partners supplying the biggest and highest quality battery manufacturers in the world For personal use only Shipped battery cells for automotives in 2019 (Gwh) Source: ‘Shipped Battery Cells for Automotive in 2019’ Roland Zenn compiled from SNE Research 02/2020 Note: Customer relat
Slide 13: Key infrastructure / values
VALUES ENVIRONMENT LOW-COST PROXIMITY TO MARKET For personal use only POLITICALLY STABLE SOCIALLY RESPONSIBLE KEY INFRASTRUCTURE GROWTH WA HARD ROCK LITHIUM IS THE FUTURE CONFLICT FREE QUALITY PRODUCTS STABLE GOVERNANCE LEADING PARTNERS SUSTAINABILITY DIVERSITY LOW SOVEREIGN RISK SAFETY 13
Slide 14: Hard rock
For personal use only Hard rock Spodumene concentrate lithium The direct conversion 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 that enable extended driving range 14
Slide 15: Battery technology of the future
Battery technology of the future For personal use only Global lithium supply and breakdown of demand by end use 2018 Global lithium supply and breakdown of demand by end use 2035 15 Source: Benchmark Mineral Intelligence (2019)
Slide 16: Hydroxide the product choice of the future
Hydroxide the product choice of the future For personal use only Lithium demand by lithium chemical product – 2015 to 2035 Source: Benchmark Mineral Intelligence (2019) 16
Slide 17: Car manufacturers gearing up for an electric future
Car manufacturers gearing up for an For personal use only electric future All new cars launched by Volvo will be partially or completely battery- powered Over the next 10 years VW will be launching 70+ new pure EVs By 2023, BMW will offer 25 electrified models 17
Slide 18: Long term contracts to secure supply
Long term contracts to secure supply For personal use only Volkswagen Volvo Toyota BMW 10+ year battery 10-year lithium Half of global sales By 2023, BMW will supply agreement LG supply agreement (10M in 2019) to be offer 25 electrified Chem and CATL with Ganfeng Lithium electric vehicles by models
Slide 19: Superbowl EV commercials
Superbowl EV commercials For personal use only Big spending by car manufacturers to advertise their electric vehicle models at this year’s Superbowl • Competition is heating up as EV brands grow (especially Tesla) and their sales steal market Porsche – Taycan Tubo S GMC – Hummer EV share • Imperativ
Slide 20: European market, EVs gaining traction
European market, EVs gaining traction For personal use only Quarterly EV sales in top European markets Volkswagen Group – expected BEV volumes by region1 VW targeting European markets Source: ACEA Quarterly Alternative Fuel Vehicle Registrations Source: InsideEVs website (May 2019) 20
Slide 21: Battery storage markets gaining traction
Battery storage For personal use only markets gaining California residential energy storage installations traction Number of systems Source: BloombergNEF, EIA Form 861M 21
Slide 22: Pilgangoora an exceptional growth opportunity
Pilgangoora an exceptional growth opportunity For personal use only UPSTREAM DOWNSTREAM STAGE 1: 2MTPA STAGE 2: 5MTPA STAGE 3: 7.5MTPA* POSCO JV STAGE: Operations STAGE: DFS and conditional STAGE: Proposed subject to STAGE: Detailed Term Sheet, FID complete on original market demand subject to Board
Slide 23: 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 6% expansion. 40,000tpa downs
Slide 24: For personal use only
For personal use only ASX: PLS pilbaraminerals.com.au Follow us on
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