Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — 5th Annual Northern Territory Major Projects Conference 2014
22 slides from Arafura Rare Earths's conference presentation, Oct 23, 2014
Slide 1: Arafura presents at NT Major Projects Conference
ASX RELEASE 23 October 2014 ARAFURA PRESENTS AT NT MAJOR PROJECTS CONFERENCE Australian Rare Earths company Arafura Resources Limited (ASX: ARU) (“Arafura” or For personal use only the “Company”) is pleased to advise that Managing Director, Gavin Lockyer, today delivered a presentation at the 5th An
Slide 2: Nolans Rare Earths – A Major Project for the Territory
For personal use only NOLANS RARE EARTHS – A MAJOR PROJECT FOR THE TERRITORY October 2014 Gavin Lockyer Managing Director Arafura Resources Limited (ASX: ARU)
Slide 3: Disclaimer
DISCLAIMER For personal use only Important Notice This presentation contains certain statements which may constitute “forward-looking statements.” Such statements are only expectations or beliefs and are subject to inherent risks and uncertainties which could cause actual values, results or performa
Slide 4: Company Snapshot
COMPANY SNAPSHOT For personal use only ASX listed company developing the ASX Code ARU Nolans Rare Earths Project in Australia Market Cap @ 8c A$35.3 million Focused strategy targeting full-scale 1-year range 5.5 – 10.5 cents production this decade Cash at 30/09/14 A$21.1 million Debt nil Strategic p
Slide 5: Key Messages
KEY MESSAGES For personal use only Focused strategy for first production this decade World-leading magnets leverage to drive high-value growth World scale project with robust economics on realistic assumptions Developing a new industry in the Territory for secure, long-term supply of rare earths Sig
Slide 6: Focused Strategy for First Production This Decade
FOCUSED STRATEGY FOR FIRST PRODUCTION THIS DECADE For personal use only Extensive development program has significantly de-risked project Moving forward with confidence towards commercialisation Concurrent offtake & funding initiatives well advanced Estimates of times are indicative only and are sub
Slide 7: Rare Earths in Tight Supply
RARE EARTHS IN TIGHT SUPPLY For personal use only EU: Economic Importance & Supply Risk USDOE: Medium-Term (2015-2025) Criticality Matrix European Commission, July 2010: Critical Raw Materials for the EU US Department of Energy, December 2011: Critical Materials Strategy Fluorescent lamps Headphones
Slide 8: World-Leading Magnet Leverage
WORLD-LEADING MAGNET LEVERAGE For personal use only RARE EARTHS MARKET 2013 global RE demand ~115,000 tonnes Global demand forecast to grow at 6-7% p.a. between 2014 and 2020 Demand driven by technology innovation, and industrial and clean energy sectors Global market valued at US$3-5 billion MAGNET
Slide 9: Nolans Project Highlights
NOLANS PROJECT HIGHLIGHTS For personal use only Underpinned by a world-scale, low-risk resource in the Territory Close to vital infrastructure – transport, water, gas, power, workforce, logistical and service support Potential to supply 10% of the world’s magnet feed demand Project status – well adv
Slide 10: From Mine to Market
FROM MINE TO MARKET For personal use only Arafura Resources Limited (ASX: ARU) 9
Slide 11: A World Scale, Low-Risk Resource
A WORLD SCALE, LOW-RISK RESOURCE For personal use only Tonnes Rare Earths Tonnes Phosphate Uranium Resources (million) % REO REO % P2O5 % U3O8 Measured 4.3 3.3 144,000 13 0.03 Indicated 21 2.6 563,000 12 0.02 Inferred 22 2.4 511,000 10 0.02 TOTAL 47 2.6 1,217,000 11 0.02 1% REO cut-off grade Premium
Slide 12: Nolans Site
NOLANS SITE For personal use only Arafura Resources Limited (ASX: ARU) 11
Slide 13: Concentrating & Intermediate Processing
CONCENTRATING & INTERMEDIATE PROCESSING For personal use only MINE & CONCENTRATOR RE INTERMEDIATE PLANT CAPEX A$217.1 million CAPEX A$964.2 million OPEX A$4.50/kg REO OPEX A$7.84/kg REO Arafura Resources Limited (ASX: ARU) 12
Slide 14: Power & Water
POWER & WATER For personal use only Arafura has defined an extensive, high-yielding groundwater system SW of Nolans Site that offers a viable alternative and preferred supply to Ti Tree WCD Capacity to service the life of Nolans operation (4.0-6.2 Gl per annum) from several borefields Community bene
Slide 15: Logistics Flowsheet – Northern Territory & Offshore
LOGISTICS FLOWSHEET – NORTHERN TERRITORY & OFFSHORE For personal use only TRANSPORT & LOGISTICS CAPEX A$21.3 million OPEX A$1.54/kg REO Logistics simplified by reduction in hazardous and dangerous good volumes and movements Excellent existing transport infrastructure for road and rail close to Nolan
Slide 16: Offshore Refining (RE Separation)
OFFSHORE REFINING (RE SEPARATION) For personal use only RE SEPARATION PLANT CAPEX A$205.4 million OPEX A$1.79/kg REO Three offshore sites identified for RE Separation Arafura has fully costed a USA Gulf Coast chemical precinct location for an RE Separation Plant Cost-competitive access to key reagen
Slide 17: Robust Project Economics on Realistic Assumptions
ROBUST PROJECT ECONOMICS ON REALISTIC ASSUMPTIONS For personal use only US$m pa A$m pa Sales Revenue The Nolans Project generates a REO equivalent 20,000 tonnes 638 NPV of A$2,045 million and an (less Royalty & Selling Expenses) IRR of 21.4% Total Revenue (A$1 = US$0.897) 638 712 OPEX The NPV has be
Slide 18: Key Differentiator – Risk Mitigation
KEY DIFFERENTIATOR – RISK MITIGATION For personal use only Key risks identified and mitigation strategies implemented Project Funding Alignment with strategic parties – producers, trading houses, investment banks, ECAs, customers, end users, supportive major shareholder Cost & Schedule Blow Outs; Ra
Slide 19: Execution
EXECUTION For personal use only Financial markets have changed permanently – a feasibility study defined by JORC or other technical bodies does not guarantee successful financing Current Focus Using experts – no western organisation has successfully designed, built & operated a modern RE plant in tw
Slide 20: Key Messages – A Recap
KEY MESSAGES – A RECAP For personal use only Focused strategy for first production this decade World-leading magnets leverage to drive high-value growth World scale project with robust economics on realistic assumptions Developing a new industry in the Territory for secure, long-term supply of rare
Slide 21: Nolans Development Report
NOLANS DEVELOPMENT REPORT For personal use only Detailed description of the Company’s plans to develop the Nolans Rare Earths Project 120+ pages fully referenced Released September 2014 Download from www.arultd.com Arafura Resources Limited (ASX: ARU) 20
Slide 22: Thank You – Questions?
For personal use only THANK YOU Questions? Arafura Resources Limited (ASX: ARU)
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