PLS Group (PLS) Study Update summary

Study highlights and outcomes

• The P2000 project at Pilgangoora targets over 2 million tons per annum production for the first six years, with a 10-year average of 1.9 million tons at a 5.2% product grade, and a revised mine life of 23 years supported by a reserve upgrade to 214 million tons.

• The project delivers an incremental NPV of $2.6 billion and an IRR of 55%, with unit operating costs estimated at $550–650 per ton FOB and a payback period of about three years.

• Capital cost for the expansion is estimated at $1.2 billion, with capital intensity per ton comparing favorably to peers.

• Sensitivity analysis shows NPV could reach $5.4 billion under higher price scenarios, with NPV highly sensitive to spodumene prices.

• The project is underpinned by 214Mt of Ore Reserves at 1.2% Li₂O and Mineral Resources of 413.8Mt at 1.15% Li₂O, with ongoing drilling targeting further extensions.

Project development and strategy

• Expansion follows a disciplined, phased approach, leveraging over six years of operational experience and staged growth aligned with market conditions.

• The next step is a detailed feasibility study, scheduled for completion in the December quarter 2025, with FID to follow based on market outlook and study results.

• The project design maximizes lithium recovery at the lowest unit cost, utilizing in-house expertise and lessons from previous expansions.

• The new processing train will complement existing facilities, optimized for lower grade, diluted ore, and will increase the scale of operations by 60–80%.

• Water requirements will increase, but solutions are being developed to reduce unit water use, and no major concerns are anticipated regarding water sourcing.

Technical and operational details

• The strip ratio is expected to average 7.6 in early years, rising to 10:1 later in mine life.

• Recovery for the new plant is targeted at 67.5%, with potential for improvement as new ore sorting technology is integrated.

• Capital estimates are at PFS-level accuracy (-20% to +30%), with risks assessed and provisions included based on live data from ongoing projects.

• The current site footprint is sufficient for the expansion, and further optimizations are expected in the next study phase.

• Infrastructure upgrades include new maintenance and port outloading facilities, with additional power and water supply solutions under review.