Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — Lynas — Diggers and Dealers Mining Forum 2016
22 slides from Lynas Rare Earths's conference presentation, Aug 2, 2016
Slide 1: Breaking the Barriers: The Lynas Story
Breaking the Barriers For personal use only The Lynas Story Diggers and Dealers Mining Forum Amanda Lacaze Managing Director and CEO 2 August 2016
Slide 2: Disclaimer
Disclaimer For personal use only This Presentation has been prepared by Lynas Corporation Limited (ABN 27 009 066 648) (Lynas or the Company) This Presentation contains summary information about Lynas and its subsidiaries (Lynas Group) and their activities current as at the date of this Presentation
Slide 3: The Mount Weld Carbonatite Intrusion
The Mount Weld Carbonatite Intrusion World Class REE and Rare Metals Deposit For personal use only Central Lanthanide Deposit Crown Deposit Mt Weld Mining Leases • Central Lanthanide Deposit, the highest grade operating Rare Earths Coors Deposit mine in the world with a current operating LOM JORC re
Slide 4: CLD Deposit – Current Reserve 20+yrs
CLD Deposit – Current Reserve 20+yrs For personal use only • Carbonatite contains 3 ore types that are flat lying and laterally continuous Current • Reserve ore zone lies between Pit 25m to 110m depth and is amendable to open pit mining with a simple ore blending Current +20yr Reserve Pit strategy •
Slide 5: Beneficiation Challenges
Beneficiation Challenges Just a simple “Bulk Float” ?? For personal use only • Very fine grain – 50% less than 7 microns • Requires very clean water – all water is Reverse Osmosis (RO) treated including recycled water • Challenging materials handling – 5 types of positive displacement pumps have bee
Slide 6: Beneficiation Challenges: Water management
Beneficiation Challenges Water management For personal use only Historical Situation Before • Tailings Storage Facility – full of stable solid suspension (22% solids) and free water on top • Very fine tailings (50% <7 microns), dispersants added in flotation • Originally, no suitable tailings thicke
Slide 7: Mt Weld Production Improvement
Mt Weld Production Improvement Water usage For personal use only Progressive Reduction in water consumption
Slide 8: Cracking the Separation barrier
Cracking the Separation barrier For personal use only 928 metres of kilns and tunnel furnaces 4 rotary kilns (60m long) 8 tunnel furnaces (88m long) 44 High Speed Centrifuges 46 Plate & Frame Pressure Filters 1,000 Solvent Extraction Stages Quality specs as low as <50ppm for some impurities
Slide 9: Cracking the Separation Barrier
Cracking the Separation Barrier For personal use only • Cracking is the first stage of the LAMP process. • Challenges were similar to lateritic nickel processes. • Mt Weld Rare Earths concentrate is mixed with 98% sulphuric acid resulting in vigorous exothermic reaction. The mixture is abrasive, cor
Slide 10: The Rare Earth market offers specific challenges
The Rare Earth market offers specific challenges For personal use only • Rare Earths are essential inputs to many important future facing technologies: – To reduce car gas emissions – In new green applications such as electrical and hybrid cars, and renewable energies such as wind turbines • China h
Slide 11: Essential inputs to the Auto Industry
Essential inputs to the Auto Industry For personal use only
Slide 12: Rare Earths Magnets are the best choice for small/medium motors
Rare Earths Magnets are the best choice for small/medium motors For personal use only Smaller size/weight Asynchronous Wired ABS pump Ferrite NdFeB 1400gr 700gr Electrical Power efficiency • NdFeB benefits are fully leveraged with e-cars • Weight reduction = Reduced fuel consumption (standard cars)
Slide 13: Breaking into the Market
Breaking into the Market For personal use only • Build position as credible, reliable non-Chinese source of Rare Earths from mine to customer • Environmentally assured and traceable supply source – from mine to customer • Establish strong commercial relationships with customers in Japan: – JARE is o
Slide 14: Lynas Today: Production Volume
Lynas Today For personal use only REOt Production Volume 4,000 Start up of SX5 Train 4 3,727 Start up of SX5 Train 3 3,500 3,171 3,166 3,000 2,606 2,567 2,500 2,177 2,043 1,973 2,000 1,500 1,000 500 445 542 432 839 968 937 850 1,142 0 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 N
Slide 15: Lynas Today: Sales Volume
Lynas Today For personal use only Sales Volume REOt 4,000 3,806 3,500 3,082 2,935 * 3,000 2,691 2,500 2,353 2,014 1,970 2,000 1,546 1,500 1,000 500 0 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 * Restated volume without value impact Sales Volume Sales volume has kept pace with pr
Slide 16: Lynas Today: Sales Revenue
Lynas Today For personal use only A$m Sales Revenue (A$'m) 60 56 55 52 50 50 46 45 45 40 36 35 31 30 30 25 20 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Sales Revenue (Gross) Revenue growth has been driven by increased volume compensating for the sustained low market prices 17
Slide 17: Lynas Today: Unit Production Costs vs Production
Lynas Today For personal use only Unit Production Costs vs Production (REO t) (A$/REOkg) 6,000 18 18 19 17 17 16 17 5,000 14 14 15 13 13 4,000 3,727 11 3,171 3,166 3,000 2,606 9 2,567 2,043 2,177 7 1,973 2,000 5 3 1,000 1 Q4FY16 June 0 -1 figure unaudited Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 F
Slide 18: Lynas Today: Total Overheads vs Production
Lynas Today For personal use only A$m 9 Total Overheads vs Production REOt 9.0 8 8,000 8.0 7,000 7.0 6 6,000 6.0 6 6 5 5,000 5 5 5.0 3,727 4,000 4.0 3,171 3,166 2,606 2,567 3,000 3.0 2,177 2,043 1,973 2,000 2.0 1.0 1,000 - - Q4FY16 June Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16
Slide 19: Lynas has kept its promises to the communities and regulators
Lynas has kept its promises to the communities and regulators in WA and Malaysia For personal use only • Lynas has been operating safely for over 3 years – Lynas operations comply with all regulatory requirements in WA and Malaysia – Lynas has industry-leading systems at both sites • Water managemen
Slide 20: Lynas is no longer a start up
Lynas is no longer a start up For personal use only • 100% of capacity is commissioned and operating • Experienced and disciplined management team • Capable and ready for future challenges • Well positioned to leverage increases in market demand and price • Strong stable operating foundations allow
Slide 21: And the moral of our story
And the moral of our story For personal use only A great resource is not a free pass to making a lot of money BUT If you have a great resource and a big dose of determination, creativity and discipline, then you will make money from your great resource!
Slide 22: Competent Person's Statement
Competent Person’s Statement For personal use only COMPETENT PERSON’S STATEMENTS– MINERAL RESOURCES The Mineral Resources and Ore Reserves Statement in this Presentation is based on, and fairly represents, information compiled by Mr. Brendan Shand who is a consultant geologist to Lynas Corporation.