Blue Ocean $2.50 Strategic Price Target Report, page-23

Here are my notes from the presentation today given by Neil Biddle.


PILBARRA MINERALS - PLS GOOD
Pilgangoora Lithium Tantalum Project
Flagship project - 2.5 years,
Second largest spodumene-tantalite resource in the world
DFS confirms tech and fin viability of 2Mtpa Pilgangoora dev
Cornerstone off take partner, General Lithium China
Pilgangoora Project 120km south of Port HEdland in WA's Pilbara region.
Port Hedland Port access
Exploration to Mining company transformation
New MD Ken Brinsden brings alot of exp in taking
$100M in bank, well funded
Average daily turnover in shares is $114M shares
Market cap $633MC at 55c.
DFS has delivered an outstanding outcome.
Expect to be commissioning by end of 2017.
And product leaving by 2018.
$250M p.a. EBITDA
NPV of $1B.
Demand for spondumene is not understood by the market.

1/3 of all Lithium is used in Glass CEramics
1/3 in rechargeable batteries small lithium batteries - power tools
Demand is pretty steady with global economy.
Lithium in China is booming
Broad Central Government policy position towards New Energy.
E-Bike phenomenon
30M E bikes produced annually.
200M E-Bikes in circulation
Targeting 5M new energy vehicles by 2020.
Tesla is less than 10% of what we will see in China.
Their demand for Spodumene will grow in China.

Lithium batteries demand will go up.
But for the price to go down, the feedstock will need to go up.
Hence China wants PLS's lithium stock.
Lead Acid batteries will be obselete within 5 years by PLS views

Lithium Phosphate Batteris (LFP) for Lead Acid Batteries replacement.
-LFP betteries superior to LA batteries. Triple life span, 95% efficiency fcompared to 60%.
Availability and Price is what is stopping LFP batteries taking over LA Battery market.
Less than 1 third in weight compared to LA.
2.5kg = 5Mt LiCo3 Equivalent
500,000 tonne per annum over next decade , 7.5t of spodumene to make 1 tone of lithium.

Mass production of EV's set to take off from 2018.
160B forcast.

Energy storage for domestic, commercial and Industrial PV/Wind Installations.


Regarding my conversation after in the break. I spoke to the other executive and he confirmed:
1. No takeover. That is a rumour.
2. The MIN Litigation is resolved. All good.