USA’s Only Conventional Lithium Project Corporate Presentation – June 2019 ASX: PLL NASDAQ: PLL ABN 50 002 664 495
USA’s Only Conventional Lithium Project ▪ Integrated spodumene-to-hydroxide business model INTEGRATED BUSINESS ▪ One of four such large projects globally ▪ Abundant infrastructure and lithium talent pool IDEAL LOCATION ▪ 50+ years of lithium processing in North Carolina ▪ 1 st quartile operating costs LOW COSTS ▪ US$888mm NPV on initial 13-year mine life ▪ XRD analysis confirms pure spodumene nature of ore body SUPERIOR MINERALOGY ▪ Absence of petalite & lepidolite should lead to strong recoveries ▪ Resource of 27.9 Mt @ 1.11% with numerous drill targets VAST UPSIDE POTENTIAL ▪ Carolina TSB one of world’s leading lithium regions ▪ Next 45 days – Metallurgy and Scoping updates NEAR-TERM CATALYSTS ▪ Next 6 months – Offtake, Permits and Feasibility Study ▪ Trading at <10% of Project NPV VALUATION UPSIDE ▪ Kidman & Wodgina deals imply huge upside for PLL shares ASX:PLL; NASDAQ:PLL 2
The American Mineral Security Act “I think It’s Really Important for our National Security” NC10 Rep Patrick McHenry “Our nation’s mineral security is a significant, urgent, and often ignored challenge…our reliance on China and other nations for critical minerals costs us jobs…and leaves us at a geopolitical disadvantage.” – U.S. Senator Lisa Murkowski, Chair of the Committee on Energy and Natural Resources “The challenge…is ensuring that the U.S. does not exchange a dependence on OPEC’s oil for a dependence on China’s batteries and critical minerals.” – Robbie Diamond, Securing America’s Future Energy ASX:PLL; NASDAQ:PLL 3
Piedmont Ideally Located in North Carolina # 1 0% 23% ~100% State for Business State Mining Royalties Corporate Tax Rate Historic Lithium Production Forbes Magazine ASX:PLL; NASDAQ:PLL 4
North Carolina Cost Advantage Location drives 1 st quartile cost position Source: Public filings, Primero and Company estimates ASX:PLL; NASDAQ:PLL 5
Projected to be a 1 st Quartile Producer Source: Roskill, Refined production cost includes all direct and indirect operating costs related directly to the physical activity of producing a refined lithium compounds, including feedstock costs (either from internal sources measured using the all-in sustaining cost of production (site operating plus other costs, as defined above), refining, on-site general and administrative costs and selling expenses. It does not include costs associated with corporate-level administrative expenses . ASX:PLL; NASDAQ:PLL 6
Low Costs Lead to Exceptional Economics Phased Development to Manage Risk and Minimize Dilution 13 $235mm $888 mm 46 % Year Mine Life Run-rate EBITDA After-tax NPV After-tax IRR PHASE ONE – 2020-2022 Mine & Concentrator • • 170,000 tpy 6% concentrate + by-product minerals • $130mm initial capex • Steady-state EBITDA - $80mm PHASE TWO – 2023+ Chemical Plant • • 22,700 tpy lithium hydroxide • $340mm capex funded partially by concentrate cash flow • Steady-state EBITDA - $235mm Source: Company Scoping Study. Refer to the announcement dated September 13, 2018. ASX:PLL; NASDAQ:PLL 7
Superior Profitability Index vs. Other Mining Projects 2.0 1.6 Profitability Index 1.2 Measures NPV vs. 0.8 Initial Capex 0.4 0.0 Piedmont Trilogy Sabina Corvus Osisko Clean TeQ General Midas Western E-Cobalt Seabridge Northern Polymet Moly Copper Dynasty Western Northern Piedmont Trilogy Sabina Corvus Osisko CleanTeQ General Moly Midas eCobalt Seabridge Polymet Copper Dynasty Project Piedmont Arctic Back River North Bullfrog Windfall Sunrise Mt. Hope Stibnite Casino Idaho Cobalt KSM Pebble Northmet Commodity Lithium Copper Gold Gold Gold Nickel Moly Gold Copper Cobalt Au / Cu Copper Copper Location USA USA Canada USA Canada Australia USA USA Canada USA Canada USA USA Stage PEA PFS DFS PEA PEA DFS DFS PFS DFS DFS PFS PEA DFS After-tax NPV 8 (US$mm) $888 $1,413 $455 $586 $310 $1,390 $734 $832 $1,830 $136 $3,400 $1,774 $271 Initial Capex (US$mm) $470 $780 $311 $424 $298 $1,491 $802 $970 $2,456 $187 $5,500 $4,695 $1,216 Profitability Index (NPV/Capex) 1.89 1.81 1.46 1.38 1.04 0.93 0.92 0.86 0.75 0.73 0.62 0.38 0.22 After-tax IRR 46% 33% 28% 38% 33% 19% 18% 19% 20% 21% 10% 15% 10% Payback 2.0 2.0 2.9 2.1 2.1 4.3 4.1 3.4 3.0 2.9 6.4 5.3 7.5 Market Cap (US$mm) $70 $337 $226 $146 $550 $147 $48 $115 $52 $41 $714 $179 $159 ASX:PLL; NASDAQ:PLL 8
2019 Catalysts Should Drive Re-Rating Piedmont Currently Trading at a Substantial Discount to Peers • Last 30 Days • Phase 4 drill results 1,150 • PFS-level mineralogy 2018E LCE Production of Mineral Resource update • 20,000t • Next 45 Days Enterprise Value (US$mm) • PFS-level metallurgy 847 • Scoping Study update H2 2019 • Permitting • • Reserve declaration 526 • Definitive Feasibility Study Resource of 16.6Mt @ 1.16% Offtake / Partnering 394 • in March 2015 318 • Project financing 263 179 153 77 PLL INR A40 NMX AJM LAC KDR PLS ALB / MIN ASX:PLL; NASDAQ:PLL 9
M&A Deals Imply Substantial Upside for PLL Shares Kidman and Wodgina Deal Pricing Consistent and Encouraging 3.00 Transaction Value / Steady-State EBITDA Lithium M&A Activity Accelerating 2.50 • Wesfarmers US$545mm bid for Kidman 2.54 2.00 2.37 • ALB US$1.15bb bid for 50% of Wodgina 1.50 • Pilbara and Nemaska have hired advisors Wodgina Kidman • Posco’s acquisition of Galaxy properties $25,000 Transaction Value / Annual LiOH Production • Pluspetrol acquisition of LSC Lithium $20,000 • Schlumberger investment in Pure Energy $23,000 $21,883 M&A Valuations Imply Upside for PLL $15,000 Wodgina Kidman • EBITDA multiples of 2.4x-2.5x • PLL steady-state EBITDA ~$235mm Transaction Value / Net Present Value 1.00 • LiOH production multiple of ~$22k-$23k • PLL annual LiOH production 22,700t 0.75 0.94 • Project NPV multiples of 0.60x-0.90x 0.50 0.58 • PLL Project NPV ~$888mm 0.25 Wodgina Kidman ASX:PLL; NASDAQ:PLL 10
Corporate Snapshot Dual-Listed on ASX and Nasdaq to Maximize Liquidity Piedmont Lithium Limited Share Price 30% Below Pre-Resource Highs Shares / ADRs (1 ADR = 100 Shares) 670.4 mm 6.70 mm Price (@ 6/21/19) A$0.165 US$11.95 Market Cap A$110.6 US$80.1mm Cash (@ 3/31/19) A$10.3 mm US$7.1 mm 90-day ADTV (42% Nasdaq, 58% ASX) ~A$152,000 ~US$80,000 Key Shareholders AustralianSuper Pty Ltd 13.2% Officers and Directors 11.6% Board of Directors Ian Middlemas Australia Chairman Research Coverage Keith D. Phillips USA CEO Anastasios Arima USA Executive Director Jeff Armstrong USA Director Jorge Beristain USA Director Levi Mochkin Australia Director ASX:PLL; NASDAQ:PLL 11
Project Background
High-Grade Mineral Resource One of North America’s Largest Hard -Rock Lithium Resources 27.9 Mt @ 1.11% Li 2 O ✓ 764,000 tonnes of contained LCE ✓ 100% of the lithium is attributable to spodumene mineralization ✓ Shallow open pits – 74% of resource within 100m of surface and 97% within 150m ✓ Open along strike and at depth – Phase 4 drilling ongoing ASX:PLL; NASDAQ:PLL 13
Vast Exploration Upside Large Areas of the Carolina Tin-Spodumene Belt Remain Unexplored “The pegmatite deposit in the Kings Mountain district in North Carolina is considered one of the three largest lithium bearing pegmatite deposits in the world together with the Manono deposit in the Democratic Republic of Congo and Greenbushes in Australia.” – Minerals Engineering – January 2019 Issue ASX:PLL; NASDAQ:PLL 14
Aggressive Land Consolidation Strategy Numerous Prospective Targets to Drive Resource and Mine Life Initial Options 2017 2018 Current 415 Acres 903 Acres 1,383 Acres 2,105 Acres ASX:PLL; NASDAQ:PLL 15
Exceptional Pure Spodumene Mineralogy XRD analysis confirms pure spodumene “The first question an investor should nature of Piedmont’s ore body ask of a hard- rock lithium CEO is “how much of the lithium reports to • Absence of petalite and lepidolite in pegmatites spodumene?” – Jon Hykawy , PhD – expected to lead to high lithium recovery President, Stormcrow Capital • Mineralogy consistent across Piedmont’s Core, Central and Sunnyside properties ASX:PLL; NASDAQ:PLL 16
Strong Metallurgical Recoveries Pure Spodumene Mineralogy Supports Strong Recoveries Resource Grade 1.50% Competitive Resource Grade… 1.11% Resource Grade 1.25% 1.00% … and Positive Met Recoveries… 0.75% 85% recoveries…based on bench scale tests and North Carolina precedent…and supported by pure spodumene mineralogy 1.25% Recovered Grade 1.00% …Lead to Strong Recovered Grade 0.75% Driving exceptional project economics 0.50% ASX:PLL; NASDAQ:PLL 17
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