Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Shareholder Meeting (October 2023)
27 slides from Arafura Rare Earths's shareholder meeting presentation, Oct 19, 2023
Slide 1: Annual General Meeting
ASX: ARU 19 October 23 For personal use only Annual General Meeting
Slide 2: NdPr Market Update
For personal use only NdPr Market Update 19 October 23 2
Slide 3: Market update: ARU share price & NdPr prices
Market update Arafura Rare Earths share price & Monthly NdPr prices For personal use only (US$/kg REO) EXW China basis 0.80 160.0 NdPr oxide prices have stabilised following marginal recovery in recent 0.70 140.0 months. Weakness in the Chinese domestic 0.60 120.0 market saw limited purchasing activ
Slide 4: Magnet Demand: NdFeB demand by end-use sector
Magnet Demand NdFeB demand by end-use sector (kt NdFeB) For personal use only Rare earth permanent magnet demand is forecast to increase at a Favourable CAGR of 7.2% in the period to NdFeB demand 2033, doubling market size to more driven by clean than 400kt NdFeB magnet materials. energy transition
Slide 5: Market Outlook: Electric Vehicles
Market Outlook: Electric Vehicles Passenger EV sales For personal use only Q1 2021 - Q2 2023 (thousands) Electric Vehicles China EV subsidies were cut at the end of 2022, leading to a sharp slowing in EV sales growth. China’s Q2 sales point towards a potential return to the high levels of EV sales g
Slide 6: Market Outlook: Wind Energy
Market Outlook: Wind Energy For personal use only New offshore wind energy & technology Wind Energy Significant recovery in new wind energy capacity in 2023 after a weak 2022. Continued increase in direct drive usage for offshore wind, particularly in regions with high wind speeds and challenging of
Slide 7: Recent developments
Recent developments Header TBC For personal use only China controls ~87% of global rare earths refining capacity China has extended its influence over existing or potential suppliers of rare earths via direct investment in development projects, offtake agreements and the construction of new faciliti
Slide 8: Favourable Supply-Demand Profile
Favourable Supply- Demand Profile NdPr Supply & Demand For personal use only Based on end-use demand from magnets DEMAND SUPPLY MATERIAL INVESTMENT IN NEW PROJECTS IS Automotive sector is forecast to Forecast supply gap represents REQUIRED TO 6.9% Required 57kt CGAR Projects Supply Gap be the primar
Slide 9: Project Delivery
For personal use only Project Delivery 19 October 23 9
Slide 10: Fly camp and construction camp
ASX: ARU October 23 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) FLY CAMP AND CONSTRUCTION CAM
Slide 11: Water infrastructure development
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) WATER INFRASTRUCTURE DEVELOPMENT 19 Octo
Slide 12: Water infrastructure development
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) WATER INFRASTRUCTURE DEVELOPMENT 19 Octo
Slide 13: Water infrastructure development
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) WATER INFRASTRUCTURE DEVELOPMENT 19 Octo
Slide 14: Process plant laydown area earthworks
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) PROCESS PLANT LAYDOWN AREA EARTHWORKS 19
Slide 15: Camp facilities
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) CAMP FACILITIES 19 October 23 15
Slide 16: Hydrometallurgical plant
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) HYDRO- METALLURGICAL PLANT A full flythr
Slide 17: Toward Net Zero 2050
For personal use only Toward Net Zero 2050 19 October 23 17
Slide 18: Arafura is committed to becoming a net zero rare earths producer
Arafura is committed to For personal use only becoming a net zero rare earths producer 19 October 23 18
Slide 19: Sustainability activities and initiatives
Sustainability activities and initiatives For personal use only “ Arafura’s ESG commitment is GHG Emissions and Water Management Water reduction strategy underway Annual Update of Sustainability Report Signatory of the UN Global Compact Pending IRMA Member Arafura has completed the IRMA Ready assess
Slide 20: Offtake
For personal use only Offtake 19 October 23 20
Slide 21: Offtake
Offtake Arafura is targeting 85% of planned production1 as binding offtake (Binding Offtake Target). For personal use only % OF BINDING OFFTAKE OFFTAKE DISCUSSION GROUP 10% LOCATION NDPR OXIDE (TPA)2 TARGET Offtake strategy aligned with NdFeB users seeking a diversified supply SECURED OFFTAKE (BINDI
Slide 22: Project Funding
For personal use only Project Funding 19 October 23 22
Slide 23: Funding Structure
Funding Structure Project Funding MMI GRANT Requirement For personal use only Société Générale and KfW appointed MLAs. KfW appointed as Export Credit Agency (ECA) structuring bank. Offtake drives participation of untied ECA DEBT EQUITY funding and creates debt liquidity. MLA financing will have a co
Slide 24: Funding Structure
Funding Structure For personal use only DEBT EQUITY Euler Hermes letter of support Potential strategic investment for up to US$600m untied loan being negotiated in conjunction guarantee subject to offtake with with final offtake through a HoA German companies and credit with Hyundai. approval. Strat
Slide 25: Indicative Project Development Timeline
Indicative Project Development Timeline For personal use only APR 2023 H1 2024* Siemens Gamesa Finalisation of credit First Renewable Energy term sheets, strategic production* Offtake Agreement investors and offtake OCT 2023 arrangements On-Country JAN 2023 Completion of Early Works Main Constructio
Slide 26: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Arafura Rare Earths Limited (Arafura, Arafura Rare Earths or the Company) Mineral Resources and Ore Reserves and is of a summary form only and therefore contains general background information which may not be complete. It shoul
Slide 27: Contact
Contact Level 6, 432 Murray St For personal use only 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)
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