Offtake Pricing and Project Expansion UpdateCUSTOMER PRICE...

Offtake Pricing and Project Expansion Update
CUSTOMER PRICE REVIEWS ACHIEVE IMPROVED PRICING OUT COMES;P680
EXPANSION PROJECT SCHEDULE ON TRACK WITH REVISED CAPITAL COST
ESTIMATE.
KEY POINTS
•Pricereviewscompleted withmajorofftakecustomers,resultinginimproved
pricing outcomes, equating to an average SC6.0 equivalent price of approximately
US$6,300/DMT (CIF China) when applying current pricing reference data.
•P680 Expansion Project delivery schedule remains on target with the total capital
cost estimate revised to ~A$404M. The estimated capital cost to deliver an additional
100ktpa of spodumene concentrate by way of a new primary rejection heavy media
separation circuit (Primary Rejection) has been revised to A$150M, whilst the new
integrated crushing and ore sorting (Crushing and Ore Sorting) facility which will
support future expansions is now expected to cost A$254M.
•The Primary Rejection facility remains on track for commissioning in the September
2023 Quarter, with the Company focused on delivering this additional 100ktpa of
production capacity as rapidly as possible to take advantage of favourable market
conditions.TheCrushingandOreSortingfacilityalsoremainsontrackfor
commissioning in the December 2023 Quarter and will support future expansions
at the Pilgan Plant which will ultimately deliver 1Mtpa of spodumene concentrate
from the combined Pilgangoora operations.
•Pre-FID funding of $38M for the P1000 Expansion Project approved by the Board to
procure long-lead items and progress engineering to maintain the overall project
schedule, with the Final Investment Decision for the P1000 Project now scheduled
for the March 2023 Quarter.
Australian lithium producer Pilbara Minerals Limited (Pilbara Minerals or the Company–
ASX: PLS) is pleased to provide an update following completion of price reviews with its
major offtake customers, as well as an update on its expansion activities at the Pilgangoora
Project.
PRICING UPDATES
Pilbara Minerals has achieved a significant improvement in pricing outcomes with its major
offtakecustomers,followingcompletionofthepricereviewsforeshadowedinthe
Company’s September 2022 Quarterly Activities Report. The revised offtake pricing applies
for all shipments to the Company’s major offtake customers falling within December 2022
and onwards.
Based on today’s market pricing reference data, average pricing across major offtake
customerswouldequatetoapproximatelyUS$6,300/DMT(CIFChina)onanSC6.0
equivalent basis.