Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — 2024 Australian Critical Minerals Conference
21 slides from Arafura Rare Earths's conference presentation, May 29, 2024
Slide 1: 2024 Australian Critical Minerals Conference ASX Announcement
ASX ANNOUNCEMENT 2024 AUSTRALIAN CRITICAL MINERALS CONFERENCE 29 May 2024 Arafura Rare Earths Limited (ASX: ARU) (“Arafura” or the “Company”) is pleased to attach a copy of the presentation delivered by Managing Director and CEO, Darryl Cuzzubbo, at the 2024 Australian Critical Minerals Conference i
Slide 2: Arafura Rare Earths
ASX: ARU For personal use only Arafura Rare Earths 29 May 2024
Slide 3: Disclaimer
Disclaimer This presentation is dated 29 May 2024 and has this presentation and, subject only to any legal to Mineral Resources is extracted from the announcement dated 11 November 2022 been prepared by Arafura Rare Earths Limited obligation to do so, Arafura Rare Earths accepts Company’s ASX announ
Slide 4: Agenda
Agenda For personal use only 1 Corporate summary 9 Binding offtake target 2 Nolans Project location 10 Project funding: indicative debt structure & status 3 Construction ready 11 Equity engagement 4 Nolans Project indicative timeline 12 A new era: Board and Management refresh 5 Market outlook: struc
Slide 5: Corporate summary
Corporate summary Why the Nolans Project? Explorer Developer Project Execution For personal use only ✓ fully-permitted1 ✓ single-site ore-to- ✓ scalable oxide project ✓ construction-ready3 ✓ tier 1 location NdPr is essential for the Demand expected to nearly energy transition double by 2032 2 – deve
Slide 6: Nolans Project location
Nolans Project location For personal use only Stuart Highway 10km east Water supply 25km Alice Springs railyard, airport southwest and other services 135km south Amadeus natural gas Tailings and waste Deep water port and associated pipeline adjacent to site management at site infrastructure at Darwi
Slide 7: Construction ready
Construction ready Once financed, we are ready to go For personal use only Environmental permits and Granted mineral lease / Access to existing approvals in place1 license infrastructure >$40m on site works de- Experienced Board and Construction to commence risking project schedule leadership team s
Slide 8: Nolans Project indicative timeline
Nolans Project indicative timeline Pre-FID CRITICAL Engineering, For personal use only PATH YEAR 1 YEAR 2 YEAR 3 YEAR 4 Procurement & Construction FID Beneficiation Plant Engineering Fabrication Construction Commissioning Complete Complete Complete Complete Sulphuric Acid Plant Engineering SAP Equip
Slide 9: Market outlook: structural deficit about to bite
Market outlook: structural deficit about to bite 126kt For personal use only 32% Automotive 57kt Drivetrain Required Supply Projects Forecast supply gap represents ~88% of Gap global supply today 9% Wind Turbines Consumer 6% Electronics • The equivalent of > 12 Nolans projects 65kt 13% Other Vehicle
Slide 10: Market drivers: NdPr pricing upside
Market drivers: NdPr pricing upside Remember the semi-conductor chip crisis?1 For personal use only • Acute competition to secure chips Big names with big promises are dependent on NdPr • Created significant risk to automotive global supply chain Selected OEM 2030 Sales Targets4 based on 2023 averag
Slide 11: Supply chain risk
Supply chain risk Remember the chips? 1 Supply security creates significant risk For personal use only Japan has ex-China strategy Japan has secured significant proportion of ex-China NdPr for stable feedstock 2 ~90% ROW dependant on China Global NdPr is Today the US, Korea andREuropean EV and wind
Slide 12: Virtue of Nolans: large, scalable, low-cost resource
Virtue of Nolans: large, scalable, low-cost resource Nolans: a differentiated proposition Benchmarking vs Lynas and MP Materials3 For personal use only 6,000 Large, high-grade Low unit cost – 5,000 resource phosphoric acid Bubble size = Grade credits (% NdPr) 2 Enterprise value1 (A$m) 4,000 3,000 Pr
Slide 13: Binding offtake target
Binding offtake target Focus on strategic value and NdPr % of Binding For personal use only equity investment Offtake Discussion Group Location Oxide (Tpa)1 Offtake Target4 Targeting NdPr users not Secured Offtake (Binding Agreement) aligned with ‘Made in China 2025 Strategy’ Hyundai & Kia Korea
Slide 14: Project funding: indicative debt structure & status
Project funding: indicative debt structure & status Facility Amount (US$m) Conditional Status Approval (US$m) For personal use only Project Finance Facilities EFA 125 125 Conditionally Approved3 US$80m NAIF 100 100 Conditionally Approved (A$150m)3 EDC 300 300 Conditionally Approved 4 KEXIM 75 - LoI
Slide 15: Equity engagement
Equity engagement Potential build-up of equity capital For personal use only Cornerstone Group Public Market Customer Cornerstone & Other Strategic • Substantial holders Industry Cornerstone • Other customer cornerstones • Government seeded funds Institutional Investors with supply chain diversifica
Slide 16: Refreshed leadership team and Board
Refreshed leadership team and Board For personal use only Mark Southey Darryl Cuzzubbo Chris Tonkin Cathy Moises Michael Roger Higgins1 Non-Executive Chairman Managing Director & Chief Non-Executive Director Non-Executive Director Spreadborough1 Non-Executive Director Executive Officer Non-Executive
Slide 17: ESG – an integrated approach focusing upon what matters most
ESG – an integrated approach focusing upon what matters most As a greenfield developer we have a unique opportunity For personal use only to create and deliver value for all stakeholders Climate Change We recognise the interdependencies of ESG Environmental in our business Management Health & Safety
Slide 18: The Nolans Project is ready to go
The Nolans Project is ready to go For personal use only Definitive Feasibility Study Native Title Agreement Mineral Leases granted Federal government approvals Northern Territory 68% of targeted senior debt Remaining debt well Early works completed government approvals funding secured – EDC, progres
Slide 19: Contact
ASX: ARU For personal use only Contact Level 6, 432 Murray St Perth WA 6000 PO Box 5773 St Georges Terrace Perth WA 6831 T: +61 8 6370 2800 E: arafura@arultd.com (All corporate and general enquiries) E: nolansproject@arultd.com (Nolans Project enquiries only)
Slide 20: Appendices
For personal use only Appendices 19
Slide 21: Appendix 1: pure-play rare earth peer benchmarking
Appendix 1: pure-play rare earth peer benchmarking Mineral Contained NdPr NdPr Company Project Location Stage Product EV (A$m)1 TREO grade (%) NdPr enrichment (%) NdPr grade(%)2 Source(s) For personal use only Resources (Mt) (Mt) Production Measured: 4.9 Measured: 3.2% Measured: 26.1% Measured: 0.84
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