PLS Group Limited (PLS) Earnings Call Transcript & Summary

Everybody to the 2025 Annual General Meeting of Pilbara Minerals Limited. My name is Kathleen Conlon, and I'm the Chair of Pilbara Minerals. Before we commence the presentations and the formal business of the meeting, for those of you in the room, please refer to the visual on the screen for evacuation procedures should there be an evacuation event. I would now like to invite Nick Abraham to provide a welcome to country.

Thank you, Kathleen. [Foreign Language] Hello, and welcome. I'm happy to see you all this afternoon. Also happy to be speaking with you this afternoon. As mentioned, my name is Nick Abraham and my family connections are Abraham, [ Benno, Humphrey, Hume, Mipi, Aletal Harris. ] And we're connected to many parts of our country, Whadjuk, which is a wood we're sitting and standing on here today, but also Yued, which is to the north of Whadjuk, also connected to Balarang, which is to the east of Whadjuk; to Wilman, which is to the southeast of Whadjuk; [indiscernible] which is to the south of Whadjuk and Wandi, which is to the south of [ Vingerup ]. I must also take this opportunity to acknowledge my [indiscernible], my wife [indiscernible], Boltons and Woods, and they're also connected into Wilman, which is southeast of Whadjuk; [indiscernible], which is south of Wilman; Balarang, which is southeast of [ Kang and Menang, ] which is south of [indiscernible], which goes all the way down to Albany. I must also take this opportunity just to acknowledge the other parts of the Noongar nation, Amangu, which is just north of Yued; [indiscernible], which is east of Balarang; [ Wadi, ] which is east of Wilman; Nunga, which is south, southeast of [ Golring, ] which goes all the way down towards [ Espan and Bilbman, ] which is further down south. However, [ Bibbman ] is a flow throughout [ Nuna ] country, and you may hear young people talking interchangeably between [indiscernible]. That's because of the ancient and still current connection. [Foreign Language] Just acknowledging the ancient land and the ancient language, but also my oldest past, present and emerging, but also acknowledging each and every one of you here today and online. So just to give a bit of an opportunity for me to tell you a bit of history of this country that you may or may not be aware of. And the story I'm going to tell you that goes back at least 650 plus thousand years. But Kathleen has only given me about 5 minutes to tell you that story. So hopefully, you would walk with me on this journey. And the story I'm telling you about is not about blame. It is not about shame. It's about understanding of this country we're sitting on today. And to do that, I've got to bring you into this space. I've got to bring you into this space by asking you 3 personal questions. Now because there are personal questions, nobody else needs to know the answer other than Buddha, country and overall the sky. So when you answer these questions, you answer them as loud as you can in your head. Buddha will hear you and we will hear, but nobody else. Do we understand? Lovely. First question, as loud as you can in your head. Just let the Buddha and world know your name. Are we all good with that one? Lovely. Next question, just let the Buddha and the world know who's your family and where you're from. You may have connections here, you may have connections to other parts of WA, other parts of Australia or even other parts of the world. Just let the Buddha and the world know who's your mob and where you're from. And depending how much you know your extended family, that may take a while, so I'm going to leave you with that. Now the third question. The answer to the third question can only come from your core, your heart and only you can answer that question. And that question is what's important to you? And I'm going to leave you with that. I want to take you on this journey. [Foreign Language] So when young people are given our knowledge through the oral tradition as passed down from our grandmothers, grandfathers, and moms and dads and younger bosses from long, long ago. And when they're telling us these ancient stories, they're telling us in a very simplistic form. And that very simplistic form takes us all the way through our life. And basically, what they're telling us is [Foreign Language], use your eyes to see, [Foreign Language], use your ears to listen, [Foreign Language] use your head, your eye to understand, understand these stories we're telling you about your country, your culture, people, values, responsibilities and purpose. And they've broken it up in a couple of key little elements that hopefully will help you understand. The very first thing they teach us about is our moral. [Foreign Language] is your family, mom dad, aunt, uncle, aunties, brothers, sisters, all the extended families and different levels of relationships and responsibilities to each and every one of those, including the [Foreign Language], the wife and in-laws because they are a very important part of our social fabric. But that was also one of our laws, one of our laws of who we could and couldn't marry. We couldn't marry close blood lines. We had to keep our genetics strong. And we still have a system today, still functioning. We still maintain our strong genetics. Next follows taught us about our culture. What is culture? I want to give you a couple of definitions what I think culture is. You may agree and you may even have your own. For me, culture is about values. Culture is also about language. And through that language, you can see your identity, your belonging, your beliefs and your spirituality. Next follows taught us about our cartigen. Now cartigen is our knowledge system where the role people understood and knew the relationship between the sun, the stars, the moon, the plants and the animals, the waterways and the seasons and how we live sustainably in those environments. Next follows taught us about our [Foreign Language] bringing together, it's our well-being, and the old people taught us about our foods, our medicines, our sites, our ceremonies, our social interaction responsibilities and purpose. And they knew we were out of balance, physically and emotionally out of connecting with all those different elements to bring us back in balance. And that was a health system. And the old people taught us that these key elements are connected to our Buddha, our land because they knew if we look after country, country would look after us. And this one represents our [Foreign Language], our elders because it was our responsibility on the system, making sure that our laws and our customs are never broken. And that system was functioning for many thousands of generations where the sun would always rise in the east and set in the west. The moon would eventually rise in the East and set in the West. And when our people pass and they leave this place, they go to the next part of the dreaming, a place called [Foreign Language], just over the west with the sunsets. And any time that ever returns in our dreams and some conscious to give us guidance and support of maintaining our laws and customs. So in this part of country, which is the Mural country, which is sort of north of the river and all the Mural people live around here. And at that time, [ Yellowbongga ] was a leader. In some strangers came too down to [ Durbalurgen, ] and they come to the Mural people around about here. And when they came, the Mural people in [ Yellowapunga ] couldn't make sense of who they were because they were pale, they look different, they spoke different and they behave differently, but they came from that way. So [ Yellowongur' ] people, only conclusion if they came from that way and they are pale, they must be a younger ancestor spirits people returning. What did we do? They had no template in how to deal with them. I can understand when they come in our dreams in some cautious way, here they were in physical form. So [ Yellowongura ] people done the only thing that they thought was humanly possible for them. If these are our younger ancestor's spirits people returning, they look tide, they look water, and they look with -- for the long journey. So we must look after them. So what the Mural people done is given up their camps all the way along here, and they moved to another camp that we know now is Lake Monger, which was originally Galup. And they left the younger ancestor spirits people here to rest recover and return. They rested, they recovered. Did they return? No, they stayed. They stayed and they saw this system and they ignore the system. And they imposed new laws and [indiscernible] on this land. And immediately, everything that wasn't important to us, all of a sudden was illegal and devalued. And immediately, we had disruptions to our and the elders in our government system. We had disruptions to our [indiscernible] and our families. We had disruption to our culture and our language. We had disruption to our knowledge system the way we looked after this land. All of a sudden, we had no say in how our land has been died. And we had disruption to our health system. Of course we couldn't have access to our sites for our foods, our medicine, our ceremonies because all of a sudden, we were passing on crown land and property. And these key things disconnected us from Buddha. And that's where my community today, picking up the pieces of the disconnection and the disruption. Now I just want to acknowledge that this disconnection and disruption happened in many parts of the world long before it arrived here and long after it arrived here. In fact, it's happening in the world today. And you need to look at the morning and evening, you can see where this disruption and disconnection is happening in many parts of the world today. I can only talk about impacts is disconnection disruption out of my country, culture, people, values, responsibilities and purpose [Foreign Language]. So despite all this recent disruption, my people's spirits are still here. Despite all this recent disruption, our spirit stories are still here. Despite all this disruption, we are still here. Throughout this disruption, many others have come. And my ancestors will be angry with me if I did not tell the real history of this country that many Western Australians may not be aware of. I just want to say [Foreign Language]. Just let the good spirits look after us and keep us safe while were here and having this meeting and see us safely back home. But also they help us to open our eyes, our ears are head and heart to understand and appreciate what was, what is, but my people are still living in hope of what could be. And what could be is dependent by the responsibility that each and every one of us have. because we've been challenged no matter where we come from. We've been challenged politically, economically, socially, today is technically and environmentally. But we all have one commonality that we all share. We all share the commonality of humanity and its survival. And hopefully, we can walk on a journey together, and we look forward to walking with you on that journey into the future for future generations. Again, [Foreign Language] the good can keep you safe and have a beautiful meeting here today, get business that you need to be done, done and [Foreign Language]. I look forward to seeing you in the future. Thank you.

Thank you, Nick, for the welcome to country. I acknowledge the traditional owners of the land on which we meet, Whadjuk Noongar people and pay respect to the elders past and present. And I appreciate your history lesson and the thoughtfulness with which you gave it to us. We also acknowledge the owners of the land on which the Pilgangoora operation is located in Nyamal and the [ Garyeri ] people. So welcome to the PLS 2025 Annual General Meeting. It's so wonderful to see so many of you here in Perth. And for those joining us online, thank you for being part of today's meeting. I acknowledge my fellow nonexecutive directors here with me, Sally-Anne Layman, Nick Cernotta, Steve Scudamore, Miriam Stanborough and our Managing Director and CEO, Dale Henderson; and our Company Secretary, Danielle Webber. I'd also like to acknowledge the PLS executive leadership team led by Dale and here with us today; chief Operating Officer, Brett McFadgen; Chief People and Sustainability Officer, Sandra McInnes; Chief Development Officer, John Stanning; Project Developer, Director, Paul Laybourne; and Interim Chief Executive Officer, Flavio Garofalo. They will all be available to take any questions because I know a lot of our shareholders have very detailed questions at the end of the meeting. To our shareholders, thank you. Your continued support is greatly appreciated and is recognized as the strength of our business. Many of our shareholders have been on the journey with us since the early days, and we thank you for your support in the good and in the challenging times, all of which can happen in the course of a few months. I will now deliver a brief address, which will be followed by a presentation by Dale. And finally, we'll move to the formal business of the meeting and provide an opportunity for questions. It's a privilege to deliver my second address to shareholders as the Chairman of PLS. When I joined the company in early 2024, I was drawn to its long-term potential, disciplined approach to growth and its reputation for delivering on its commitments. What I've seen since has only deepened my confidence in the business, the leadership team and the strategic direction we're pursuing. Just last month, the Board visited Pilgangoora once again, witnessing the exceptional scale and quality of the operation. I remain impressed with the professionalism, talent and adaptability of our people. Our site visits are more than symbolic. They give us a direct insight into how our strategy, culture and most importantly, safety is being lived day-to-day. These opportunities are invaluable, and we see this as a key part of our governing role. As part of the FY '25 highlights, our safety first value continued to guide everything that we did in FY '25. It helped us navigate major expansion projects safely and meet our safety targets. But of course, safety means more than just physical safety. It's about mental and emotional well-being, which is why we launched our safe and respectful behaviors portal and rolled out our mentally healthy workplace strategy, reinforcing our commitment to psychosocial safety. Our strategy remains very much focused on long-term value creation, underpinned by disciplined capital allocation and proactive risk management. The Board maintains a strong ethos of creating value through optionality, allowing us to respond rapidly when necessary, especially important in a market where lithium prices can shift and the landscape is rapidly evolving. The past year continued to bring periods of volatility as expected in a developing industry. Our response was both strategic and pragmatic. The decision to consolidate Pilgangoora to the P850 operating model by placing the Ngungaju Plant into care and maintenance reflected thoughtful operational judgment and disciplined capital stewardship. Importantly, our investment program remained on track. We delivered 2 major expansion projects at Pilgangoora, the P680 and the P1000 on time and within budget, significantly increasing our nameplate capacity and operational efficiency. Despite the need to reduce our cost base and conserve capital, we continue to make sensible investments in growth projects to ensure that we can move quickly as the market shifts to capture additional value for our shareholders. FY '25 also marked a step change in our international footprint. The acquisition of Latin Resources and the Colina project in Brazil was a strategic move that aligns with our long-term goals to diversify our revenue base, broaden market access and secure high-quality lithium assets. We also made meaningful progress with our chemical strategy. Our joint venture with POSCO in South Korea has now commenced commercial production, and we continue a joint feasibility study with Ganfeng for another potential downstream lithium conversion facility. We also progressed our midstream demonstration plant with all construction works remaining on track for completion this quarter. I'm pleased to share that we made significant progress in our sustainability journey in FY '25. We achieved a major milestone of the completion of Stage 1 of our Pilgangoora power strategy, and this is now delivering lower emissions, lower cost energy to our operations, a real tangible step towards our goal of net Scope 1 -- net zero Scope 1 and 2 emissions in the decade commencing 2040. As PLS continues to grow and mature, we stay focused on creating value, shared value with the communities we operate. In FY '25, we increased our community investment to $2.2 million in Australia, reflecting our commitment to leaving a positive legacy. In Brazil, we supported our first community development program. And even before regulation required it, our team began with a free and prior informed consent process with the local key Lamba community and achieved 100% approval. We understand that we need to make -- ensure that the community has a voice, not just at the start of the project, but through the entire life cycle. Looking ahead, the long-term outlook for electrical vehicles and battery storage remains incredibly strong with other uses of lithium developing as well. Lithium will continue to play a vital role in enabling the world's energy transition, and PLS is well positioned to be part of that future. We are confident in our ability to continue to navigate current market conditions and respond to customer needs as the market evolves. Our strong financial position and disciplined capital management ensure we remain resilient and ready to invest in growth when the time is right. I'd like to take this opportunity to acknowledge our fellow Director, Steve Scudamore, who has indicated that he plans to retire from the Board before the 2026 AGM. As the inaugural Chairman of our Audit and Risk Committee, Steve has brought exceptional expertise in finance, accounting, compliance and risk management, guiding us through our first decade with clarity and assurance. His strong and steady leadership has helped the Board shape our strategy, capital management and confidence. PLS is stronger for his contribution, and I sincerely thank him for his tireless commitment and service. We are well advanced on our succession plan. And as a Board, we will continue to consider Board skill and renewal requirements. On behalf of the Board, I want to thank our people for their commitment, resilience and to our shareholders for their continued support. Together, we're building a business that's not only delivering for today, but helping shape a sustainable energy future. Thank you for your belief in our long-term vision. I will shortly invite Dale Henderson to deliver his presentation. While we will not address questions on the presentation or general business matters until the formal part of the business, for those attending virtually, you may submit your questions at any time. To submit a written question online, select the Q&A icon at the top of the Computershare virtual platform, type your question into the box select the topic to which your question relates and send. To submit a verbal question or comment, please follow the instructions written below the broadcast. For further instructions, please look at the online meeting guide available on the website or as an attachment on the meeting platform. Please note that while you can submit online questions from now on, I will not address them until the relevant time in the meeting. Please also note that your questions may be moderated or if we get more than one question on the topic, amalgamated. If your question relates to one of the resolutions during the formal portion of the business, please reference the formal meeting item it relates to, and it will be addressed at the relevant time. For those in the room, I ask that you hold your question until then. Before Dale addresses the meeting, please refer to the screen for a short video. [Presentation]

Great video. I don't need to do my speech now, I think. Look, thank you, Kathleen, for your introductions, and good afternoon, everyone, and a big thank you to Nick for his a very warm welcome to Country. In our industry, the cycle doesn't define success. It's the decisions you make inside it and the discipline with which you deliver them. The recent cycle revealed very different decisions and very different deliveries across the sector, and the impact of that divergence was clear in FY '25. FY '25 was a transformational year for PLS. It was one that tested the sector, but also demonstrated our resilience, discipline and capability. Despite softer pricing, we delivered major growth projects, materially lowered our cost base, strengthened our balance sheet and expanded internationally with the Colina acquisition, all the while much of the sector was contracting. We turned the down cycle into an advantage, not a limitation. Because of that discipline, we now hold one of the strongest balance sheets, lowest cost hard rock operating positions in the global lithium industry. Combined with our scale, flexibility and 100% independence, this gives PLS a structural advantage. As pricing normalizes, our margins are set to expand faster than our peers. Now as we move through FY '25 -- sorry, as we move through FY '26, our priorities are clear: operational excellence, disciplined cost control and capital efficiency. We are leveraging the platform we've built to drive stronger margins and sustainable long-term returns for our shareholders. In short, we've laid the foundations, strengthened our resilience, and we are well positioned for the opportunities ahead. Now today, I want to speak to 3 key things. The first is how we delivered through one of the toughest pricing cycles in recent years. The second is how we advanced our strategy across operations, growth, chemicals and diversification. And lastly, why PLS is positioned for the long-term opportunity ahead. So as many of you will be aware here, PLS is the world's largest independent hard rock lithium producer. And that independence is one of our greatest strengths. It gives us the agility to navigate a fast-moving market on our terms and pursue value with discipline. Our foundation asset is, of course, the long-life Tier 1 Pilgangoora operation. And through the P680 and P1000 expansions, we've built a leading low-cost processing platform that delivers greater scale, higher efficiency and operational flexibility, positioning PLS competitively on the global cost curve. But our ambition extends beyond Pilgangoora. We are building a diversified growth platform. Through downstream exposure with our POSCO joint venture in Korea and international optionality via the Colina project in Brazil, these assets broaden our footprint, deepen our participation in the value chain and strengthen our long-term growth profile. And we're doing this from a position of financial strength with $852 million in cash and $625 million undrawn credit facilities as at the end of the September quarter. This gives us the flexibility to invest and grow and lead through the cycle. All of this reflects disciplined, consistent execution on our long-term strategy, and it's a strategy anchored in 4 enduring pillars, which I'll outline next. So FY '25 marked a major step change in executing this strategy. With the investment cycle now largely complete and our operating base strengthened, it's the right time to reaffirm the 4 pillars that guide PLS. First is our operating excellence, delivering reliability, efficiency and safety across the business. The second is around unlocking the full potential of our asset base, led by, of course, our Pilgangoora operation, but also supported by the international opportunity that we have in Brazil with the Colina project. Third, creating additional value through the battery material supply chain, including the POSCO joint venture, I mentioned a moment ago, our midstream demonstration plant and our study pathway with Gunfeng and shout out to the Gunfeng team who are here today. Our fourth pillar is diversifying our revenue base beyond Pilgangoora, building a broader, more resilient business with multiple future growth pathways ahead of us. These pillars have shaped every major decision we've made, and they underpin the discipline, optionality and resilience that you see across the business we've built today. Now our strategy is delivering exactly what it was designed to deliver. Scale, efficiency and a structurally stronger operating base. In FY '26, that showed up in the midpoint of our published guidance, and you can see the trends here as it relates to CapEx down to around $315 million as we move from construction to optimization. Unit costs down to approximately $580 per tonne, reflecting the structural efficiencies we've embedded through our P850 operating model, our Cost Smart program and our expansions being the P680 and P1000. And then the production itself, up to about 845,000 tonnes, supported by a more efficient processing platform and improved recoveries. So in short, lower CapEx, lower costs, higher output. And I have to say this is my favorite slide in the deck. This is the operating leverage we've set out to build. We're strengthening our margins, improving our cash generation and giving us the resilience today with meaningful upside as market conditions improve. And of course, it reflects the discipline that has guided us through the cycle and positioned us for long-term advantage. Now that discipline has been central to how we've navigated the cycle, ensuring that we protect, of course, that strong balance sheet, strengthen cash flow and maintaining the flexibility to invest when conditions support them. Over the past 3 years, these actions have delivered meaningful results, including around $230 million in cash flow improvements in FY '25 alone. This reflects a whole of business effort. This includes the structural gains from our P850 operating model, the establishment of our $1 billion revolving credit facility, our targeted workforce and corporate cost reductions and our continued delivery of the Cost Smart initiative, which is our cost-out program, embedding lasting cost discipline, and our earlier decision to withhold dividends to preserve cash during the downturn. Together, these measures ensured PLS remains one of the best capitalized companies in the sector with the resilience and flexibility to advance growth and respond decisively as the cycle recovers. Now that same discipline also guided how we used the cash generated during the last pricing peak, where we converted short-term returns into long-term structural advantage. Across FY '22 and FY '23, PLS generated $3.1 billion in cash. It was a beautiful period. But we put it to good use and we allocated it deliberately. We put approximately 2/3 or $1.9 billion back into the base operation, funding our P680 and P1000 expansions and other projects that have transformed the Pilgangoora operating base into a large-scale, efficient Tier 1 asset and large -- and arguably second to none in terms of its processing capability that we've established. We also invested about another 1/4 of that $3 billion plus or $800 million, giving it back to shareholders, which some of you here in the audience, I know remember. So of course, wonderful to be giving back to many of you who are here today for having faith in the company and riding that part of the cycle. And lastly, the balance that we retain to protect the business and ensure resilience through the low part of the cycle. In short, we use the cycle strategically, building structural advantages that will deliver value for years to come. Now moving now to FY '25 highlights. FY '25 tested the resilience of the entire sector, but it also showed PLS at our best. Operationally, FY '25 was a standout year. We delivered record production of 755,000 tonnes. We implemented the P850 operating model to prioritize value over volume, and we commissioned the world's largest lithium ore sorter as part of the P680 project, enabling whole of ore processing and improving resource utilization. We also completed the P1000 expansion, providing capacity to scale efficiently as the market recovers. Now I'd be remiss to not mention we were on time and under budget, and you can talk to Paul Laybourne, our Project Director later on how we managed that. And we've got Brett in the front row that Kathleen introduced to lead our operations. So a fantastic set of outcomes. I have to say, highly uncommon in any major project ramp-up ever, but delivered by the full team, an incredible set of outcomes, and that is what's been behind some of the fantastic success we are starting to realize this financial year. But lastly, for FY '25 highlights, well, we went international. We completed our first international acquisition that Kathleen touched on being the Colina project in Brazil. So together, these achievements reflect disciplined execution and strategic foresight, positioning PLS strongly for the next phase of growth as and when the market supports. Moving to financial highlights. While FY '25 was undeniably challenging from a pricing standpoint, yet our financial performance highlights the underlying resilience of the business and the discipline with which we have navigated the cycle. With revenue of $769 million, that reflected a 43% decline in the average realized price of USD 672 per tonne. Even so, we delivered positive underlying EBITDA of $97 million, demonstrating the strength of our operating platform. We also achieved a reduction in unit operating costs during the period, down to $627 per tonne FOB even as we completed the major ramp-up activities that I mentioned a moment ago. So lower costs, a stronger operating base and a robust balance sheet provide the resilience through the current cycle and position PLS to capture significantly stronger margins as the market conditions improve. Now it's that combination of disciplined execution, strategic investment, well, that also now extends to how we think about sustainability and our broader role in the energy transition, which I'll turn to now. Sustainability remains central to how we create long-term value. And within FY '25, we delivered meaningful progress across all dimensions, including safety, carbon emissions reductions and community partnerships. So just touching on safety briefly. We achieved TRIFR of 2.79 beating our target and performing below the peer average, a clear reflection of the strength of our safety culture and operational leadership. Second, reduction in emissions, where we reduced our Scope 1 and 2 emissions by 7.1%, and we lowered power-related emissions intensity by 20%, enabled by the completion of our Stage 1 of our power strategy. These gains improve both our environmental footprint and our long-term cost position. Thirdly, as it relates to our community and supply chain partnerships, where we spent in total $1.2 billion with Australian businesses, including $30.5 million with First Nations enterprises, working with 16 indigenous owned suppliers across the Pilbara, which we're very proud of. So together, these outcomes show how we've advanced safety, efficiency and decarbonization in line with our mission of powering a sustainable energy future. And we continue to create shared value for our people, our partners, communities and of course, our shareholders. And it is the same disciplined long-term focus is reflected clearly at Pilgangoora, where our multiyear investment cycle is now delivering a step change in capability. Pilgangoora's latest investment cycle is now complete, and the site has been fundamentally reshaped into a Tier 1 large-scale, long-life operation with lower cost and a far more flexible operating platform. The P680 and P1000 projects have delivered a step change in capability, including new crushing and ore sorting facility that enables whole of ore processing and greater scale and efficiency. In parallel, while we transitioned to the P850 operating model, this is supported by turning off the Ngungaju facility, and that has created a simpler and more efficient structure, reflecting a disciplined value over volume approach designed to maximize cash flow in the current market environment. With construction now complete, our focus has shifted firmly to optimization, lifting throughput, improving recoveries and embedding further cost efficiencies across the asset. A key driver of that progress is our Cost Smart program. Cost Smart is delivering sustained structural reductions in operating costs across both mining and processing and more broadly across the business. These initiatives are embedding a culture of continuous cost discipline, maximizing value through the cycle and reinforcing Pilgangoora's position at the lower end of the global cost curve. I have to say, Flavio, our interim CFO, has done an excellent job leading the charge on this front. Now this is this disciplined foundation around cost out that supports our ability to advance growth options in a measured and strategic way. I'll now turn to the outlook for the business. So as it relates to FY '26, our focus is clear. It's about operations excellence, disciplined cost control and capital efficiency, strengthening margins and ensuring resilient returns. Our priorities align with the 4 pillars of our strategy: operate, grow, chemicals and diversification. Together, these priorities reflect a focused and disciplined approach to FY '26, positioning PLS to capture value as the cycle turns. As it relates to our approach to growth, while this remains measured and disciplined, growing in lockstep with the market and advancing options that strengthen diversification, flexibility and future scale, which I have to say are all fully within our control. As it relates to Ngungaju, we retain the optionality to bring Ngungaju back online. This is latent capacity, enabling rapid additional tonnes when pricing supports higher output. Now of course, this is without long lead times or major capital. As it relates to P2000, our next expansion at Pilgangoora, while the feasibility study assessing potential expansion of this, which would increase production to more than 2 million tonnes per annum, that feasibility study is due in FY '27. And of course, any development decision relating to that study depends upon funding pathways and, of course, taking a view of the pricing environment at that time. So to avoid any doubt, this is a growth option that we have to bring to market when it makes sense for the market. It is not a commitment. In the same vein, we also have the Colina project in Brazil. Now drilling and study optimization continue with outcomes due in the June quarter of this year -- next year, I should say. Now the Colina project is a high-quality, 100% owned project that broadens our footprint into the Atlantic markets. So collectively, these initiatives form a disciplined suite of growth options, strengthening scale, geographic diversification and long-term strategic positioning, all set to be deployed as the cycle recovers. As it relates to our downstream strategy, well, this also provides important growth optionality and our joint venture with POSCO in South Korea is a key part of that. Our 18% interest in the facility gives us exposure to one of the world's most advanced battery and EV hubs and provides meaningful foothold for further down the battery material supply chain. This facility has a 43,000 tonne hydroxide facility. Both trains 1 and 2 have successfully produced battery-grade material, demonstrating the capability of the operation and customer certification is well progressed across both trains. Overall, PPLS provides valuable downstream optionality, positioning PLS within an established battery ecosystem and supporting our strategy to create value across the battery material supply chain. Now alongside PPLS, we are advancing additional downstream pathways selectively and with discipline, as it relates to the midstream demonstration plant, construction is progressing well and remains on schedule for completion next month. The facility will demonstrate our ability to produce high-purity intermediate products through lower emissions processing pathway. As it relates to our study with our partners, Ganfeng, where we have assessed more than 1,000 potential sites globally together. And through that process, we have identified several preferred locations. Both parties have extended the sunset date for our potential joint venture to December 27, ensuring that we can time that investment decision with the market in the right location and of course, making sure it is a compelling investment case. So together, these initiatives broaden our downstream optionality, providing multiple well-sequenced pathways to participate more deeply in the battery material supply chain as the market evolves. Now with those pathways in place, it's worth briefly reflecting on the broader market backdrop. So before I step through the market in more detail, I wanted to frame the context briefly. We continue to see short-term volatility, but the long-term fundamentals remain incredibly strong, driven by EVs, energy storage and the rapid build-out of AI and data center infrastructure. What matters in this environment is cost position, product quality, balance sheet strength and the ability to stay disciplined through the cycle. Now turning to pricing. The lithium market remains fast moving, reflecting shifting supply responses, emerging demand segments and evolving policy settings across China, the U.S. and Europe. Now despite this near-term noise, the fundamental outlook remains intact. Inventory levels are normalizing. In fact, of late, they've been decreasing. Downstream activity is stabilizing and policy momentum continues to emphasize the importance of secure high-quality supply. We're also seeing increasing government focus on critical minerals resilience and PLS is actively engaged in these discussions, including -- we recently went on an AUSTrade delegation to the U.S. that Sandra here in the front row attended. We're also engaged in the strategic reserve discussions for Australia, and we have direct engagement with the policymakers in Canberra. Separate to that, where we've also been involved offshore, including the recent APEC Summit in South Korea. And just the other week, we attended COP30 in Brazil. Again, all government related and the common thread through all of it was critical mineral security. Now in recent months, pricing has improved from earlier lows. And as the market matures, well differentiation between producers is becoming clearer and clearer. Cost position, operational reliability and balance sheet strength matter today more than ever. And in that environment, PLS is exceptionally well positioned with a long-life Tier 1 asset, a structurally low-cost operating base and the financial strength to remain agile as conditions evolve. Now the rapid growth we're seeing across the electric vehicles and battery energy storage continues to reinforce the strength of long-term lithium demand. Together, these remain the 2 largest and fastest-growing drivers of the market. Global EV sales are expanding strongly, up about 24% year-to-date, with global penetration reaching approximately 30% and more than half of all new vehicles in China are now electric. This growth is being supported by falling battery costs, broader model availability and tightening emission standards across our major markets. As it relates to battery energy storage, well, it's growing even faster. It's up around 40% year-on-year. China's rapid build-out of renewable energy, particularly solar, is driving the need for large-scale storage solutions to stabilize grids, sorry, and firm up supply. Now while there's been some short-term noise around U.S. tax credits and tariffs, these developments do not change the long-term trajectory. Electrification continues to deepen and storage is becoming a fundamental component of every modern energy system. These are structural, not cyclical drivers, and they continue to strengthen. And with 100% ownership model, scale growth pipeline and a strong balance sheet, we, PLS are well positioned to capture the full value of this demand as market conditions recover. Now electrification is now moving well beyond passenger vehicles into a much broader range of mobility segments. And these emerging markets bring significantly higher battery intensity. As it relates to electric truck sales, well, they grew more than 140% in the first half of this calendar year alone, driven largely by China's tighter efficiency standards and the rapid build-out of charging infrastructure. As it relates to rail, well, it's beginning to adopt battery electric locomotives, including Australia's first units now operating here in the Pilbara. In Marine Transport, Tasmania's ICA has delivered the world's largest fully electric vehicle and aerospace is taking early steps with successful test flights of next-generation electric aircraft. Even motorsport is transitioning with Formula 1 adopting larger hybrid electric systems from '26. So apologies to the petrol heads out there. Formula 1 is going electric and go on. And you might have seen in the video, the flying drone. That was either myself or James Fuller. We got to ride in that in Guangzhou a couple of months back. So these things are real. That wasn't AI, I can assure you. And how we got that through our life insurance, I'm not sure. We won't go to that. But it's incredible to see how the world is changing, and it was absolutely thrill for all the right reasons to ride in that eVTOL a few months back. So across these e-mobility segments, well, they actually require larger battery systems and passenger vehicles, amplifying their impact on future lithium demand. but the awakening giant. Beyond mobility, one of the most significant accelerations in lithium demand is coming from battery energy storage and the rapid build-out of AI and data center infrastructure. These are becoming major structural demand engines in their own right. Battery energy storage is the fastest-growing segment of the market. China alone is targeting 180 gigawatts of new storage capacity by the end of '27. That's more than 140% increase from today's level, representing a USD 30 billion of new investment. Globally, as renewable energy penetration grows, particularly solar, storage is increasingly required to stabilize grids and support reliability. At the same time, AI and data centers are emerging as the second major driver. These facilities require large-scale instantaneous power support, making grid-connected BES essential for digital reliability. And in 2025, this year, more than USD 580 billion is expected to be invested in data centers alone. So together, China's storage build-out and the explosive growth in digital infrastructure are accelerating lithium demand, reinforcing the long-term opportunity for scale producers like PLS. So stepping back, the fundamentals underpinning long-term lithium demand continue to strengthen. EV adoption is rising globally, energy storage is scaling rapidly and the expansion of AI and data center infrastructure is creating significant new source of demand. China's policy momentum, combined with growing renewable penetration worldwide is accelerating the build-out of large-scale storage. While emerging mobility segments and digital infrastructure add depth and diversification to future demand. These are structural forces, broad-based, global and long term. And with a Tier 1 asset, a structurally low-cost position, a strong balance sheet and further growth options, PLS is exceptionally well placed to capture this growth as the cycle evolves. So against that backdrop of strengthening long-term demand, I want to bring together the themes that have defined PLS over the past year and the qualities that position us for the opportunities ahead. Let me return to the theme that frame today's discussion. In our industry, the cycle doesn't define success. It's the decisions you make inside it and the discipline with which you deliver them. The recent cycle revealed very different decisions and very different deliveries across the sector, and the results were clear in FY '25. PLS turned the down cycle into an advantage. We delivered major growth projects, lowered costs, maintained a strong balance sheet and expanded our portfolio while much of the sector was contracting. Because of those decisions and the discipline with which we've delivered them, we now stand with a Tier 1 asset operating at scale, a structurally lower cost base and one of the strongest balance sheets in the lithium industry. Combined with our scale, flexibility and 100% independence gives PLS a structural advantage. As pricing normalizes, our margins are set to expand faster than our peers. Our growth options across chemicals, international expansion and downstream technologies are sequenced, flexible and fully in our control. But our confidence is anchored in what we control, disciplined decisions, disciplined delivery, operational excellence and strategic agility. These are the hallmarks that define PLS and our role as a partner of choice in the global supply chains. Now before I close, I want to acknowledge our long-term shareholders. Many of you and many of you in the room today have held firms through the tough parts of the cycle, staying committed when sentiment weakened. It's your conviction that help position PLS where it stands today. We are stronger than ever and ready for the opportunities ahead. So let me finish with where we began. The cycle may shift, but disciplined decisions and disciplined deliveries are what sets us apart. PLS is well positioned for the next chapter. Thank you to our great people of PLS, our partners, our community partners, my fellow directors and all our shareholders for your continued support. I'll now hand back to Kathleen for formal proceedings. Thank you very much.

Thank you for that. So I'll briefly explain the meeting procedures before we move to the formal business of today's meeting. All voting will be conducted by way of poll on all resolutions, which I will declare open shortly. If you are eligible to vote, there are 2 ways you may cast your vote in person or via the online platform. Voting shareholders who have joined us in person should have received a white attendance card at registration. If you did not receive a white attendance card and believe you should have, please raise your hand now and Computershare representative will assist you. Once voting is open, shareholders in the room can scan the QR code on the white attendance card using the camera function on your smartphone. This will open the voting app. You will need to accept the terms and conditions. You can then vote by selecting either for, against or abstain. If you need assistance voting, please raise your hand at any time and a Computershare representative will assist you. For the virtual attendees eligible to vote in the meeting, a vote icon will appear on the virtual platform. Select the icon will bring up the list of resolutions and present you with voting options. To cast your vote, simply select one of the options. There's no need to hit submit or enter button as the vote is automatically recorded. You can change your vote up until the time I declare voting closed. If you require assistance during the meeting, please refer to the online meeting guide. With regard to proxies, these numbers will be displayed on the screen for each resolution. Please note that a number of open proxies has been received for the Chairman's discretion, and I advise that I, as Chairman, will be directing these in favor of each relevant resolution. Ladies and gentlemen, I now turn to the formal matters to be considered today and declare the voting open on all items of business. I will give you a warning before I close voting. Rod Soms from Computershare has agreed to be the returning officer today. And following confirmation by Computershare, final results will be announced to the ASX later today. The questions process for those attending virtually has been explained. For those in the room, if you wish to ask a question, please raise your hand and wait for a microphone before stating your name for the record. In the interest of time and to allow all attendees the opportunity to ask a question, you may be limited to one question and one follow-up question. I will now move to the business of the meeting. The company has released its notice of meeting for today's meeting, which can be viewed in the ASX and the PLS websites as well as on the company's Computershare meeting platform. I propose that the notice of meeting is taken as read. If there are no objections, I will record that the motion is carried. The first item of business is to receive and table for consideration the annual report, which includes the financial report, the sustainability report, the directors' report and the auditor's report for the financial year ending 30 June 2025. Members should note that the reports are not tabled for approval, but simply for discussion. Mr. Derek Meats from the company's auditor, KPMG, is available to answer questions from members in relationship to the conduct of the audit. I will now pause to allow shareholders to comment or ask questions on the financial report, reports of the directors or auditors or any other general questions of the company following Dale's presentation. We can address those now. So are there any questions in the room?

My name is Aaron Wood. I would like to ask a question regarding capital allocation and especially, I guess, employee share plans. And I guess, try to understand if there is any consideration for these being placed on market instead of being a dilutionary impact to existing shareholders moving forward.

Thank you for your question. It's something that we -- in terms of buying shares online on market versus allocating them. And the issue for us has been whilst we continue to be potentially capital constrained, then it tends to make sense to issue the shares. As we become a more mature company, then we will definitely look at buying those shares on market. And given the volatility in the market, our balance sheet and the cash that we've had on hand has held us in very good stead. So it is something we absolutely consider and we'll continue to do so. Other questions in the room? Please ask a question about Dale's presentation, yes.

I'm Karen [indiscernible]. I note that you're talking a lot about sustainable energy, and I think that's a great thing. In Dale's presentation, he talked about now at Pilgangoora having the largest lithium ore sorter and in Korea, the joint venture plant. Could you give us some more details on exactly how much of both of those items and Brazil, if you have the information, is -- how much of the energy that you use in those locations is sustainably generated and what your short, midterm goals are to improve the sustainability of the energy that you use, for example, at Pilgangoora. I haven't seen any wind farm wind turbines or solar panels in any of the photos, but that could be just because they were out of the photo.

I'll let you answer that, Dale.

Thank you very much for your question. So I'll speak to the strategies as much as we have defined for each of those 3 regions. So starting with Australia, we have a 3-phase approach for our energy transition. in Australia, and we've completed Phase 1. So we've moved from what was actually remote diesel generators, which is very carbon-intensive to a combination of solar plus batteries plus LNG. And by the way, this was actually one of the things delivered this past year. I didn't add it on the list. We did so many things, but we've done the first phase of that 3-phase strategy. Then the second phase is essentially an extension of that, more solar, more batteries and scaling that up. And then the third phase, hopefully, we'll look to do a network power solution in the region. And there's a couple of different models being floated. And the idea there would be to network into a larger infrastructure network where we're all part of the same network. But the aim is to continue to pursue carbon out whilst also getting cost out. So that's Australia. As it relates to Brazil.

So in Australia, what percentage today is sustainable energy? What percentage are you using? Is it...

Sandra, do we have that number off the hand? 6 megawatts of solar power. How much? We've had a 20% reduction in power emissions. We can follow up after we have disclosed this to market. on Australia. But just to round out on Brazil. The good news there is they actually lead the G8 as it relates to lowest carbon power as a country, largely hydropower power. And we will be looking to network into that. So this is a very low carbon power source. And of course, one of the attractions of the region and further, a very low-cost supply of power. As it relates to Korea, they have a combined source of power. It includes some nuclear and some carbon. I don't have the stats off hand unless Sandra, do you have any of that? Sorry. We'll have to come back to you on Korea. But certainly, Korea, like the other countries, all other countries is pursuing carbon out strategy. Does that answer your question?

Not really. I'd like to know, is it 20%, 30%, 1%, 99% in each of the 3 areas.

So Brazil is 100% carbon out already, clear of the hydropower. South Korea, I don't have that number off hand. We'll have to come back to you. And as it relates to Australia, we've disclosed this already. I don't have that number on hand, but we can give that to you after the meeting.

Okay. Any additional questions in the room? Do we have any online questions?

Yes. I have received a couple of questions online. The first one is from Mr. Stephen Mayne in regard to financial statements and reports. PLS has 12% of total shares currently sold short, down from 20% a few weeks ago. We have also had Australian Super lift its stake from 11.5% to 17.5% in the last few months. The stock has also doubled in that time. What is going on? Is any of this connected? And do you know if Australian Super has a policy of making any of its $2.2 billion stake in our company available to short sellers?

So thank you, Stephen Mayne. is a very supportive shareholder. They strongly believe in the energy transition are putting a lot of money into the sector, not just in our company. We have been told they do not have a policy of providing those shares to short. And as you know, our stock gets shorted as a proxy for lithium price. So when an announcement comes out or there's some speculation about what's happening in the capacity and whether capacity is coming online or offline, that often results in speculation and shorting in the marketplace as a proxy for the lithium price. Do we have any other questions?

Yes. Another general business question from Mr. Stephen Mayne. I have moderated this one slightly as I did the previous one. PLS is one of the 20 most popular stocks on the ASX with retail shareholders, however, less than 2% bothered to vote at AGMs. This makes the relative influence of institutional shareholders such as Australian Super, greater at AGMs than it should be when it comes to contested resolutions put to vote. Who do we deal with Australian Super? And what would we say to them if they requested a Board seat?

So I'll answer the first question, which is retail shareholders voting. We make an effort to provide the opportunity for retail shareholders by having a hybrid meeting. We always make sure that our Investor Relations contact details are on the material that goes out. And in my experience, when retail investors are unhappy with what the company is doing, they show up and they vote. So that doesn't concern me because I think we give them ample opportunity, and we take their feedback very seriously. In terms of Australia Super, as I said before, they're very supportive. We work with their investment team. We also have multiple interactions with their ESG and stewardship teams. They spend time with us talking about governance. And frankly, I'm not going to engage in a speculation as to whether or not they're going to ask for a Board seat. Any other questions online?

No more questions on those resolutions.

Any other questions in the room? Excellent. If there's any questions we haven't had time to address, please take the time to either talk to James or anybody else. And further on sustainability, we have Sandra in the room as well. So if there are no further questions, I'll proceed to the specific resolutions in the Notice of Meeting for shareholder consideration. We have a number of remuneration resolutions to consider today. So I thought I would have Nick come and explain our philosophy and strategy with executive remuneration. So I'd like to invite Nick Cernotta, the Chairman of our People and Culture Committee, to say a few words.

Thank you, Kathleen, and good afternoon, shareholders. I'd like to address resolutions 6 through to 10 relating to equity grants for our Managing Director and CEO, Dale and executive remuneration framework more broadly. The resolutions before you today reflect the Board's simple but powerful philosophy. Executives should think, act and be rewarded like owners. When our executive hold meaningful equity in PLS, their interests become aligned and inseparable from yours. They share in the upside when we create value, and they feel the pain when share price declines. This alignment drives the right behaviors, long-term thinking, disciplined capital allocation and a relentless focus on sustainable shareholder returns. Our strategy is to embed this owner's mindset as early as possible by way of 3 key mechanisms: existing long-term incentive framework being performance rights worth in Dale's case, 150% of his fixed remuneration and vesting over 3 years, subject to meeting defined performance conditions. The recently introduced mandatory 20% deferred equity component of each executive's short-term incentive with an option -- an optional election to up that to 50% in deferred equity rather than taking the cash. Pleasingly, that election has been taken up by Dale and all the other executives. Thirdly, extending the salary sacrifice scheme to the executives, similar to what has been in place for the nonexecutive directors for the past 2 years. Both the LTI and STI equity components carry performance conditions for safety, production, costs, relative shareholder returns and delivery of strategic objectives. If PLS doesn't perform the vesting of the awards, cash and equity is impacted. We've also proposed an executive loan share plan, which has been designed to accelerate shareholder alignment through what is a once-only escrowed equity allocation to incentivize for both share price appreciation and 4-year executive retention during what continues to be a period of sustained volatility in the lithium market. The Board is acutely aware of the heightened risk of executive turnover. Maintaining a stable and committed executive team over the next 4 to 5 years is considered critical to ensuring the company can successfully navigate current market conditions and be positioned to capitalize on the future growth opportunities. The Board considers the loan share plan to be a necessary supplement to the existing LTI and STI plans at this specific point in the cycle. Importantly, the performance linkage is built into the offer as any upside to participants only materializes if there is share price appreciation over the 4-year vesting period. This provides strong alignment with shareholder outcomes, while the additional equity exposure accelerates the alignment of executives' interest with those of you, our shareholders. We want executives who don't just want to work for PLS, but we want executives who have an owner's mindset. This approach drives better long-term performance, stronger governance and greater strategic discipline. So the Board unanimously recommends you vote in favor of all the remuneration resolutions. Thank you.

With that, we'll move to Resolution 1, which relates to the remuneration report, which is included as part of the directors' report that can be found on 102 of the company's 2025 annual report. Voting on the adoption of the remuneration report is for advisory purposes only. The resolution and proxy votes received on this resolution are displayed on the screen. I now invite the shareholders to comment or ask questions that they may have on Resolution 1, and Danny will let me know of any online questions. Are there any questions in this room related to this resolution? No. Danny, are there any questions online?

Yes, we've received one question from Mr. Stephen Mayne. Did any of the proxy advisers recommend against this remuneration report item or any other item of business today? And did this translate into any material against votes? Can the Chair please share what engagement occurred with proxy advisers and major institutional investors before today's AGM?

Thank you, Stephen. Having conversations with investors and proxy holders ahead of the AGM is an important part of the work we do. Sally-Anne as Chair of the Sustainability and myself, we meet with a number of the stewardship and investment teams at major shareholders, and we meet with all the major proxy holders and attempt to answer all the questions. The proxy adviser reports are confidential and they're the ownership of the proxy advisers. So I'm not going to provide information on that. I will point out that there was some negativity in the rem report and in the share loan grant with some concern about whether there was an appropriate mechanism. But in fact, most shareholders supported it. Are there any other questions on the rem report? Okay. So if there are no other questions, I'll put the resolution to the meeting. If you haven't done so, please now cast your vote on this item. I will now move to the next item of the business. I refer you to Resolution 2 of the Notice of Meeting, which relates to the reelection of Mr. Nicholas Cernotta as Director. Nick retires by rotation and offers himself to you for reelection. His details are set out in the explanatory memorandum and annual report. The resolutions and proxy votes are displayed on the screen. I now invite Nick to say a few more words.

Thanks again, Kathleen. Firstly, let me say that it really does remain a privilege and an honor to stand here before you to seek your support in my reelection to the Pilbara Minerals Board. When I first joined in 2017, I committed to bringing my operational experience strategic insight and responsible stewardship to protect and enhance shareholder value. I'd like to believe my contribution to the Board so far has helped deliver against those objectives. With over 40 years in the mining industry and the colors in the explanatory memorandum, if you want to, after cutting my teeth in the gold fields and then broadening my responsibilities across many bulk, precious and base metal commodities, I don't think there's much that would surprise me today in terms of operating challenges, social, cultural and environmental considerations and geopolitical and economic turmoil, and there's been no shortage of that lately as we know. I've enjoyed senior executive positions with several very accomplished resource and mining service companies where knowledge and insights to safe and efficient mining and processing applications were matured along with gaining empathy, which is required to support the executive in the execution of business strategies. I currently also serve as an independent Nonexecutive Director across a portfolio of ASX-listed companies where I chair and participate in various Board subcommittees, giving me a deep and current appreciation for best practices in corporate governance, strategic oversight, business and corporate risk management, social and environmental stewardship and all keeping a pulse check on culture and operational execution. This broader ASX company exposure brings informed and new perspectives to our strategic boardroom considerations, ultimately supporting more responsible shareholder wealth creation. I take seriously the trust that you place in me and my independence, which allows me to challenge constructively so that decisions are made in the best long-term interest of all our shareholders and our stakeholders. On that note, I respectfully ask for your continued confidence and trust and for your support in my reelection to the Board. I look forward to continuing to serve you and to work in the best interest of this uniquely positioned and amazing company.

Nick has the full support of the Board, and he's an incredibly good contributor. So I'll now invite shareholders to comment or ask any questions they may have on the resolution to reelect Mr. Chad. If there are no questions in the room, Danny, do we have any online?

Yes, we do. We have one question online from Mr. Stephen Mayne. There was a 9.7% protest vote on the proxies against Nicholas Cernotta's reelection. Was there an issue? Could Nicholas confirm that this will be his last 3-year term, and he won't be seeking a fourth term in November 2028 when he will have served almost 12 years?

Thank you, Stephen. As many people know that there's an increasing alignment with shareholders' votes when they have an issue either with the auditor or with the rem report to also have a protest vote against the individual who's been elected. So we weren't actually given any reason or any feedback from our investors about any issues they might have with Nick. And in terms of Nick's standing for reelection, as I said earlier, we have a succession plan that we're putting in place at the moment to make sure that we have an orderly transition of directors over time. So if there are no more questions, I'll put the resolution to the meeting. If you haven't already done so, please now cast your vote on this item. I'll now move to the next item of the business. I refer you to Resolution 3 of the Notice of Meeting, which is a special resolution and relates to the proposal to change the company's name to PLS Group Limited. The resolution and proxy votes received are displayed on the screen. I'll now ask shareholders to comment or ask any questions they may have on this resolution. Danny, are there any questions online?