Pilbara Minerals

Overview

Pilbara Minerals Limited (ASX:PLS) is focused on the world-class, wholly-owned Pilgangoora Lithium-Tantalum Project, located in the Pilbara region of Western Australia, within 120 kilometers of Port Hedland. The advanced Pilgangoora Project is already confirmed as the second largest hard rock lithium (spodumene) deposit in the world, with on-going drilling expected to further increase the project’s resource base.

A March 2016 Pre-Feasibility Study (PFS) for the Pilgangoora Project showed robust economics and confirmed that it is set to become a major low-cost supplier of high-quality lithium concentrates. “Based on these results, Pilgangoora is now firmly established as the world’s leading lithium development project – a premier mid-tier mining asset which is already attracting strong interest from prospective project financiers and cornerstone investors based on its potential to transform Pilbara into a leading player in the rapidly growing lithium industry,” said Ken Brinsden, Pilbara Minerals’ Managing Director and CEO.

A Mineral Resource upgrade is on track for July 2016 and a Definitive Feasibility Study (DFS) is due for completion by August 2016.

Investment Highlights

• Pilgangoora is the world’s second largest hard rock lithium (spodumene) deposit. The project ranks above average in terms of size, grade, and costs, as well as demonstrating favorable metallurgy to date.
• Updated Mineral Resource Estimate expected in July 2016, ahead of the DFS in August 2016.
• PFS shows project Net Present Value (NPV) of A$407 million (post-tax discount rate of 10 percent) and Internal Rate of Return (IRR) of 44 percent.
• Heavily oversubscribed $100 million capital raising completed in April 2016 to accelerate Pilgangoora Project development.
• Ability to serve total lithium market including meeting demand for low-iron spodumene.
• Off-take Memorandums of Understanding (MOUs) in place, accounting for more than 100% of planned annual production output.
• Lithium demand is forecast to grow between 10 percent and 12 percent annually until 2020. The highest growth segment is lithium-ion batteries with about a 50 percent Compound Annual Growth Rate (CAGR).