Pls Group Limited · ASX:PLS
Pls — Pilbara Minerals — Diggers and Dealers 2016
26 slides from Pls's conference presentation, Aug 1, 2016
Slide 1: Pilgangoora Lithium-Tantalite Project
For personal use only Pilgangoora Lithium-Tantalite Project ASX: PLS The world’s leading lithium development project Diggers and Dealers - August 2016
Slide 2: Disclaimer and Competent Person's Statement
Disclaimer and Competent Person’s Statement Disclaimer For personal use only ► This presentation may contain some references to forecasts, estimates, assumptions and other forward-looking statements. Although the company believes that its expectations, estimates and forecast outcomes are based on re
Slide 3: Pilbara Minerals – Overview
Pilbara Minerals – Overview ► 100% ownership of the world-class Pilgangoora Lithium-Tantalite Project in WA’s For personal use only Pilbara region ► World-class lithium-tantalum reserve with significant upside ► Second largest spodumene-tantalite resource in the world ► PFS confirms technical and fi
Slide 4: Board of Directors
Board of Directors Tony Kiernan Steve Scudamore Robert G Adamson Ken Brinsden Neil Biddle John Young For personal use only Non-Executive Non-Executive Non-Executive MD and CEO Executive Director Technical Director Chairman Director Director Highly experienced Highly experienced Geologist with over 4
Slide 5: Corporate Summary
Corporate Summary Pilbara Minerals Share price – as at 29 July 2016 For personal use only Capital Structure ASX: PLS Shares on issue 1149 million Top 20 shareholders Approximately 37% Unlisted Options 103 million Cash at 30/06/2016 $100 million Market capitalisation $618 million @ 54¢ Debt $0 Enterp
Slide 6: Developing a World-Class Lithium Mining Centre
Developing a World-Class Lithium Mining Centre For personal use only ►Pilgangoora Project located 120km south of Port Hedland in WA’s Pilbara region ►Reserve location offers strategic advantages for infrastructure access, mining approvals and lower cost of operations ►High quality PFS demonstrates e
Slide 7: Pilgangoora – A Globally Significant Lithium Resource
Pilgangoora – A Globally Significant Lithium Resource Talison Lithium For personal use only Greenbushes Pilbara Minerals Ltd Nemaska Exploration Exploration Target Whabouchi - Canada (2016) MIN / NeoMetals Mt Marion RB Energy Ltd Quebec - Canada Altura Mining Ltd Galaxy Resources Pilgangoora Mt Cait
Slide 8: PFS Highlights: Technically and financially robust long-life project
PFS Highlights Technically and financially robust long-life project For personal use only ► Indicated and Inferred Resource of 128.6Mt @ 1.22% Li2Oand 138ppm Ta2O5 containing 1,570,000 tonnes Li2O, and including 39 M lbs Ta2O5 ► 2Mtpa mining in Phase 1 and on-site processing. DFS to further describe
Slide 9: PFS Highlights: Outstanding project economics driven by very low cost
PFS Highlights Outstanding project economics driven by very low cost of operations ► Life-of-mine operating cash costs1 of only USD$205/tonne of For personal use only spodumene concentrate FOB (including by-product credits for Ta2O5 production) ► EBITDA over first 5 years of operations of approximat
Slide 10: Pilgangoora – Mining
Pilgangoora – Mining A straightforward open pit mining proposition For personal use only ►Conventional open pit mining proposed, 100- tonne mining fleet ►2Mt ore feed per annum, Phase 1 ►PFS Reserve, LOM strip ratio of 3.5:1, waste: ore tonnes. ►PFS Strip ratio over first 5 years 2.87: 1 ►Both owner
Slide 11: PFS underscores robust base case however further growth to come
PFS underscores robust base case however further growth to come ► Robust PFS: >50% EBITDA margins & 44% IRR based on: For personal use only ► average spodumene price of US$456/t FOB ► 29.5mt reserve for mine life of 15 years (at 2mtpa) ► We see significant upside potential in several areas: ► Curren
Slide 12: Pilgangoora DFS Underway
Pilgangoora DFS Underway For personal use only Stage 1 Stage 2 Stage 3 Stage 4 Resource PFS DFS – Nearing Project Growth Complete Completion Delivery Resource Estimation Project Definition Detailed Design and Finance / Permitting – ► JORC Inferred /Indicated ► Maiden reserve, Project Planning Decemb
Slide 13: General Lithium – a major producer of lithium chemicals in China
General Lithium – a major producer of lithium chemicals in China For personal use only ► Listed on NEEQ, Beijing, Code No: 837358 ► Currently produces 8,000tpa of Lithium Carbonate (LC) & 2,000tpa of High Purity LC 4N (99.99%) ► Soon to commission 5,000tpa of Lithium Iron Phosphate (LFP), Li battery
Slide 14: Lithium Raw Materials – Battery Supply Chain
Lithium Raw Materials – Battery Supply Chain Future Value Added Products For personal use only Pilbara and General Lithium Spodumene Lithium Upgraders Cathode & Battery E Transport Mine Carbonate/Hydroxide & Component Electrolyte Producer Producer Grid Storage Mixers Producers & Grid Stabilisation D
Slide 15: Downstream Chemical Processing
Downstream Chemical Processing For personal use only ► Develop partnerships with key lithium chemicals industry participants ► Access to technology, operating expertise and intellectual property ► Shortcut to Pilbara’s participation in downstream lithium chemicals market, supporting the Company’s fu
Slide 16: Global Lithium Markets Surging Demand – Tight Supply
Global Lithium Markets Surging Demand – Tight Supply For personal use only ► Pilgangoora spodumene concentrates meet the metallurgical specifications of the entire range of lithium products ► Cornerstone offtake agreement with General Lithium ► Over 100% of projected lithium oxide production subject
Slide 17: China – A Lithium Consumption Powerhouse
China – A Lithium Consumption Powerhouse ► Broad Central Government policy position towards For personal use only ‘New Energy’ ► Domestic carbonate pricing took-off coincident with acceleration in EV sales ► Significant expansion through entire lithium-ion supply chain, including major chemical conv
Slide 18: Global Motor Vehicle Lithium Demand
Global Motor Vehicle Lithium Demand For personal use only ► Tesla Series 3 to be released in ► China, Japan and Korean Government 2017, retail price of US$36,000, policy strongly supports EV’s with large 400,000 orders already and growing rebates, zero sales tax and free licensing. ► Mercedes Benz r
Slide 19: Strong Demand Outlook
Strong Demand Outlook World forecast demand for Lithium by first use (t LCE) For personal use only ►Lithium-ion batteries driving demand ► 20%+ annual growth since 2000 ► Currently ≈35% of global market ►Electric Vehicles and E-Bikes ► Currently 3% of global lithium market ► Accelerated growth expec
Slide 20: Summary: Key investment takeaways
Summary Key investment takeaways For personal use only Emerging low- Largest lithium Outstanding Ideally placed to cost Australian resource and project Rapid pathway to capitalize on robust strategic high grade economics financing and market outlook and metals relative to ASX- demonstrated productio
Slide 21: Additional Information
Additional Information For personal use only Developing a globally significant new Australian lithium business 21
Slide 22: Market Outlook
Market Outlook For personal use only Price forecasts – Chemical-grade spodumene ►Conservative pricing based on Roskill forecast data ► Latest public contract price +USD$600/t CFR ► Indicative of very tight supply ►Very strong leverage within the project to improved pricing outcomes. USD$600/t (FOB)
Slide 23: Pilgangoora – Processing
Pilgangoora – Processing 2Mtpa ore feed with flowsheet to produce 3 product streams For personal use only 23
Slide 24: A Rapid Pathway to Financing and Development
A Rapid Pathway to Financing and Development For personal use only 24
Slide 25: Pilgangoora Project Resource and Reserve Tables
Pilgangoora Project Resource and Reserve Tables For personal use only Pilgangoora Resource Category Category Mt LiTonnage 2O (%) (Mt) Ta2O Ta 2O5(ppm) 5 (ppm) Li2OFe(%) 2O3 (%) Ta2O5 (T) Li2O (T) Ta2O5 (Mlbs) Ta2O5Li(M 2O lb) (T) Table (July 2016) Ta2O5 17.9 182 3,255 7.2 Measured Indicated 18.0 1.3
Slide 26: Pilgangoora Lithium-Tantalite Project
For personal use only Pilgangoora Lithium-Tantalite Project Developing a globally significant new Australian lithium project