The World’s Best -Located Lithium Project Company Presentation – August 24, 2017 ASX:PLL | ABN 50 002 664 495 | www.piedmontlithium.com
Company Overview
Corporate Structure Piedmont Lithium Limited (ASX:PLL) Piedmont Lithium Limited Australian ASX-Listed Company Ordinary Shares (ASX:PLL) 454.0 million Management & Advisor Options 80.4 million (Exercise 5c-25c, Expiry Dec 2019-Jul 2022) 100% Share Price 10.0 cents (@ 22 August 2017) Market Capitalization Piedmont Lithium, Inc. A$45.4 million (@ 22 August 2017) North Carolina Corporation Cash A$4.6 million (@ 30 June 2017) 100% Piedmont Lithium Key Shareholdings Project 40km from Charlotte Directors & Management ~20% North Carolina, USA 3
Experienced Board and Management Keith D. Phillips – President & CEO BOARD OF DIRECTORS Highly respected New York mining investment banker with a +30 year career on Wall Street during which he worked on strategic and financing transactions representing over $100 billion in Ian Middlemas aggregate value. Previously Senior Advisor with merchant banker Maxit Capital, after leading the mining investment banking teams for Merrill Lynch, Bear Stearns, JPMorgan and Dahlman Rose. Chairman Anastasios Arima – Founder & Executive Director Keith Phillips Resource company executive with experience in the development and funding of resource Managing Director companies. Founder & former Executive Director of Paringa Resources Ltd and Coalspur Mines Ltd. Instrumental in developing Coalspur from a A$3 million to A$1 billion market capitalisation prior to Anastasios Arima his departure. Executive Director Lamont Leatherman – Chief Geologist Robert Behets Exploration geologist with +25 years of experience. Former project geologist for BHP Minerals and Non-Executive Director Noranda. Extensive experience in numerous styles of mineralisation including lithium bearing pegmatite systems. Levi Mochkin Dr. Vijay Mehta – Lithium Product & Processing Advisor Non-Executive Director Lithium industry veteran with 45+ years of experience in mineral and brine based processing Mark Pearce technology. Previously Product and Process Technology Development Leader of FMC Corporation (NYSE: FMC) and involved in the processing of the spodumene pegmatites from FMC’s operations Non-Executive Director in North Carolina. Board Success ASX: SO4, Mkt Cap: A$60 million ASX: PNL, Mkt Cap: A$140 million ASX: BKY, Mkt Cap: A$190 million ASX: PDZ, Mkt Cap: A$85 million Exit (2015) ~A$700 million Exit (2011) ~A$1.2 billion 4
The World’s Best -Located Lithium Project ▪ Ranked 2 nd of 50 US states for business ▪ Ranked 1 st for ‘low state & local business tax burden’ North Carolina is Business-Friendly ▪ NC is a ‘right to work’ state ▪ 9-month state permitting process for mining operations ▪ The world’s primary source for lithium from 1950s – 1980s Past Producing Region ▪ Metallurgy is proven ▪ Sony commercialized the LI-ion battery using local ore Proximity to Downstream Markets ▪ <15 miles to the only two large lithium processing facilities in the US ▪ Advanced transportation network World Class Infrastructure ▪ Low-cost power from multiple sources ▪ 4+ kilometers of strike length identified in Phase 1 drilling High-Grade Drill Results ▪ High-grade lithium in every drill hole ▪ Phase 2 drilling underway with assay results pending ▪ Low-cost power from multiples sources ▪ Skilled local labor – no need to transport/house workers in camp Low capital and operating costs ▪ Nearby industrial consumers for by-products ▪ No state mining royalties ▪ Only US spodumene project Strategic Value ▪ Only upstream project within 1,000 miles of ALB and FMC facilities Positioned for US Markets ▪ US asset, US management and (soon) a US listing 5
Important Milestones ✓ 1 st Qtr 2017 Secured Core Land Position ✓ 2 nd Qtr 2017 Completion of Phase 1 Drilling Campaign ✓ 2 nd Qtr 2017 Commencement of Phase 2 Drilling Campaign ✓ 3 rd Qtr 2017 Appointment of CEO and Key Strategic Advisors ✓ 3 rd Qtr 2017 Appointment of Key Geology, Engineering and Permitting Consultants ✓ 3 rd Qtr 2017 Acquire Additional Land Options to Expand Footprint ✓ 3 rd Qtr 2017 Commence trading on the OTCQX in the United States ✓ 4 th Qtr 2017 Completion of Phase 2 Drilling Campaign ✓ 4 th Qtr 2017 Maiden JORC Resource Estimate ✓ 4 th Qtr 2017 Commencement of Preliminary Economic Assessment ✓ 1 st Qtr 2018 Achieve full North American share listing 6
Lithium Battery Revolution Market Factors Driving Lithium Battery Demand
Lithium Demand is Increasing Rapidly Consensus sees lithium demand tripling by 2025 due to growth in EVs 2016 Demand by End-Market Lithium is the new gasoline.” Goldman Sachs Forecast Demand by End-Market Source: UBS Research 8
Broad Array of Electric Vehicles Coming to Market 9
Electric Vehicle Revolution is Accelerating “EVs will make up 54% of global sales by 2040.” Bloomberg New Energy Finance Recent country announcements Recent company announcements ▪ France – 100% EV by 2040 ▪ Volvo – all new models will be EVs from 2019 ▪ UK – 100% EV by 2040 ▪ VW – 25% EV mix by 2025, 1M EVs p.a. ▪ Norway – 100% EV by 2025 ▪ Mercedes – 10 EV models, 15-25% EV by 2025 ▪ India – 100% EVs by 2030 ▪ BMW – 0.4M EVs by 2020 ▪ China – 2M EV by 2030 ▪ Porsche – 50% EVs by 2023 ▪ Netherlands – 100% EV by 2025 ▪ Ford – 13 EV/PHEV models by 2020 ▪ Germany – 100% EV by 2030 ▪ Tesla – 1M units by 2020 “…around 2021 battery costs will reach $100/kWh, bringing EVs to cost parity.” Tesla CFO Deepak Ahuja 10 Source: Deutsche Bank research (9 July 2017)
Consensus Estimates May Prove Too Conservative “We are on the cusp of one of the fastest, deepest, most consequential disruptions of transportation in history.” Tony Seba Source: Tony Seba “…what happened to Kodak when digital cameras appeared. The end was swift and brutal.” Sydney Morning Herald 11
Lithium is the Commodity most-Impacted by Growth in EVs Lithium supply must increase 30x in a 100% EV world % Lift in Battery Material Demand from 100% EV Penetration Lithium 2898% Cobalt 1928% Rare earths 655% Graphite 524% Nickel 105% Copper 22% Manganese 14% Aluminum 13% Silicon 0% Steel -1% PGM -53% -500% 0% 500% 1000% 1500% 2000% 2500% 3000% Source: UBS Securities 12
Energy Storage will also Drive Lithium Demand Lower-cost, more energy-intensive batteries will address current limitations of alternative energy sources 13
Continued Delays in Supply Response would Support Higher Prices Major 2016 Global LCE Supply Distribution New lithium projects principally coming from brines in Argentina and China-processed Australian spodumene projects Historic Lithium Supply Estimates 700 410 Greenfield lithium projects 600 Global LCE Supply Actual Forecast 500 have underperformed (k tonnes) 400 expectations 300 198 134 200 100 0 2012 2016 14 Source: 1) UBS Research 2) Orocobre Presentation, Roskill
Piedmont Lithium Project Back to the Future for the World’s First Lithium Producing Region
Location, Location, Location Back to the Future in the Cradle of the Lithium Industry Based in the famous Carolina Tin-Spodumene belt Home to the only two historic US spodumene mines and the only two significant US lithium processing facilities HQs for Albemarle and FMC Lithium Piedmont Lithium Project Charlotte is the 2 nd fastest growing city in the US and home for many important American companies 16
North Carolina – The Cradle of the Lithium Industry Piedmont Lithium Project 17
Superior Infrastructure Power & Gas Transportation Skilled Workforce/Population McGuire Nuclear Power Station (2.3 GW) I-85 Interstate Highway Transcontinental Natural Gas Pipeline Charlotte/Douglas Int. Airport ~11.5 GW of large scale, low cost Interstate 85 (I-85) runs directly south of 2.4 million people located within the ▪ ▪ ▪ power, within 50km from the project the project providing connection to the Charlotte Metropolitan area major highways of the US Major transmission lines run The region is home to multiple universities ▪ ▪ immediately south of the project CSX and NS Railways are proximal to the providing for a highly skilled pool of talent ▪ project The Transcontinental Gas Pipeline, one Charlotte ranks as a top workplace ▪ ▪ of the largest in the US, runs through Charlotte/Douglas Airport, one of the destination given the cities affordability ▪ Bessemer City largest hubs in the USA, is ~30km from the and location within the US project 18
Promising Drill Results High-grade mineralization in every drill hole 4 high grade Li corridors identified ▪ Property consists of 530 contiguous acres ▪ Historic drilling (2009/2010) consisted of 19 holes totaling ~1,200 m ▪ Phase 1 drilling program consisted of 12 holes totaling ~1,500 m of drilling and identified 4 corridors or groups of pegmatite swarms within the property 4+ kilometers strike length ▪ Pegmatite dikes generally strike northeast with a moderate southeast dip and range in thickness between 5-25 m ▪ Phase 2 drilling 60% completed. Program will consist of approximately 9400 m ▪ Maiden resource anticipated by year-end 19
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