Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — Lynas — Shareholder Meeting (November 2004)
28 slides from Lynas Rare Earths's shareholder meeting presentation, Nov 24, 2004
Slide 1: Building a fully integrated Rare Earths supply chain from mine to customer
Building a fully integrated Rare Earths supply chain from mine to customer Presented by Nicholas Curtis Lynas Corporation’s AGM 24 November 2004
Slide 2: Content
CONTENT Introduction to Lynas Corporation Ltd Introduction to Rare Earths Mt Weld Rare Earths Project Conclusion 1
Slide 3: Lynas is a listed Australian company
LYNAS IS A LISTED AUSTRALIAN COMPANY Australian • Head Office in Sydney • Mt Weld Rare Earths deposit in Western Australia • Additional significant mineralisation for Rare Metals including Nb, Ta, Ti, Zr, Rare Earths particularly weighted to the mid and heavy Rare Earths Listed and Independent • Lis
Slide 4: Lynas has a clear vision and strong values
LYNAS HAS A CLEAR VISION AND STRONG VALUES Vision We will lead the growth of the global Rare Earths industry by creating a reliable, fully-integrated source of supply from mine through to customer Values • Strive for excellence in safety, health and the environment • Value our differences and be ope
Slide 5: Content
CONTENT Introduction to Lynas Corporation Ltd Introduction to Rare Earths Mt Weld Rare Earths Project Conclusion 4
Slide 6: What are Rare Earths?
WHAT ARE RARE EARTHS? Rare Earths is the collective name for 15 metallic elements known as the Lanthanide series, plus Yttrium 5
Slide 7: Where do Rare Earths come from?
WHERE DO RARE EARTHS COME FROM? Whilst Rare Earths are relatively abundant in the earth’s crust, they are rarely present in economic concentration They are never found as free metals but as a ‘cocktail’ of Rare Earths elements that need separating for commercial use China currently supplies more tha
Slide 8: Rare Earths enrich our lives in many ways
RARE EARTHS ENRICH OUR LIVES IN MANY WAYS Glass Colour & Light Miniaturisation Polishing Powerful magnets Powders - Neodymium - Cerium Phosphor for CRT & PDP screens Ceramic capacitors - Europium / Yttrium - Neodymium - Terbium / Yttrium - Lanthanum Glass Screens - Cerium ‘Nano’ Powders
Slide 9: Rare Earths have many applications in the automotive industry
RARE EARTHS HAVE MANY APPLICATIONS IN THE AUTOMOTIVE INDUSTRY… Glass and Mirrors UV cut glass Car body primers polishing powder and anti-corrosive • Cerium Daimler Chrysler Fuel Cell • Cerium coatings Vehicle • Yttrium Diesel Fuel Additive Engine • Cerium Sensors • Lanthanum • YSZ Catalytic Converte
Slide 10: Electronics is also a key industry for Rare Earths
…ELECTRONICS IS ALSO A KEY INDUSTRY FOR RARE EARTHS Integrated Circuit Speakers • Ultra high purity Ce polishes silicon • Nd magnets in wafer headphones of NEC Notebook powered by integrated Fuel Cell Ipod and MP3 Players Screen • Nd magnet in PC • Eu, Tb phosphors and Notebook speakers – CRT & PDP
Slide 11: The Rare Earths market is global and growing strongly
THE RARE EARTHS MARKET IS GLOBAL AND GROWING STRONGLY Regional distribution of 2003 market Market forecast (excluding new applications) 5.5% 103 4.5 Ceramics Japan & 100 CAGR 5.5 Other SE Asia 90 84 7.0 Phosphors 23% 4.0 China 80 5.0 14.0 Polishing Pwdr 5.7 34% 70 TREO ('000 tpa) 11.5 18.5 60 Magnet
Slide 12: Rare Earths prices and demand are recovering rapidly
RARE EARTHS PRICES AND DEMAND ARE RECOVERING RAPIDLY Basic Rare Earth Product Average Price on Mt Weld Distribution (1992 to 2005F) (Metric Tonnes) (US$/kg) 120000 14 100000 12 10 80000 8 60000 6 40000 4 20000 2 0 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Actual RE Dema
Slide 13: Mt Weld's grade and composition are a natural advantage
MT WELD’S GRADE AND COMPOSITION ARE A NATURAL ADVANTAGE Mt Weld Composition vs Baotou Composition By Weight By Value By Weight By Value Lanthanum oxide 25.50% 10% 25.70% 13% Cerium oxide 46.70% 17% 51.30% 24% Praseodymium oxide 5.30% 10% 5.40% 13% Neodymium oxide 18.50% 25% 15.70% 30% Samarium oxide
Slide 14: Content
CONTENT Introduction to Lynas Corporation Ltd Introduction to Rare Earths Mt Weld Rare Earths Project Conclusion 13
Slide 15: Overview of the entire RED model with initial volumes
OVERVIEW OF THE ENTIRE RED MODEL WITH INITIAL VOLUMES Upstream Downstream Method Open Cut Flotation Acid Cracking Solvent Extraction Output Ore Concentrate SEG + RECl RE compounds REO con- Av 14.8% 40% SEG 96% ~100% centration over 1st 20yr RECl 45% Planned 121,000 tpa 31,500 tpa SEG 450 tpa 10,500
Slide 16: The Mt Weld mine
THE MT WELD MINE Access to the world’s richest known Rare Earths deposit, located at Mt Weld, Western Australia All environmental and Aboriginal Heritage studies and approvals are complete Lynas is currently evaluating transportation options from Mt Weld to Port of Esperance for shipping to China 15
Slide 17: The Central Lanthanide deposit is the world's richest RE deposit
THE CENTRAL LANTHANIDE DEPOSIT IS THE WORLD’S RICHEST RE DEPOSIT 16
Slide 18: The Mt Weld resource estimate and mine plan are complete
THE MT WELD RESOURCE ESTIMATE AND MINE PLAN ARE COMPLETE Central Lanthanide Deposit (4% REO cut-off) Category Tonnes (Mt) Grade (%REO) Tonnes REO Measured 1.2 15.7 186,000 Indicated 5.0 11.8 583,000 Inferred 1.5 9.9 148,000 Total 7.7 12.0 917,000 JORC standard resource estimation and resource modell
Slide 19: Mt Weld will be a small open pit operation
MT WELD WILL BE A SMALL OPEN PIT OPERATION Key aspects of mining operation Final dimensions – 600m x 300m Open pit – maximum depth 70m Minimal blasting required for waste removal ROM pads used for grade control Crush to maximum size 10cm Stockpile for road train and rail transport 18
Slide 20: Rare Earths concentration
RARE EARTHS CONCENTRATION Successfully completed technical feasibility study for the production of Rare Earths concentrate Lynas’ concentration process employs a novel state-of-the- art flotation regime A pilot plant has been completed achieving a steady state process recovery for the Rare Earths ox
Slide 21: Rare Earths cracking and initial separation
RARE EARTHS CRACKING AND INITIAL SEPARATION Mt Weld concentrate will be processed at a purpose built processing facility in China Chinese design institute has completed engineering study for a cracking and initial separation plant in China The process flow sheet has been tailored to offer flexibilit
Slide 22: Conceptual plant layout for cracking and separation in China
CONCEPTUAL PLANT LAYOUT FOR CRACKING AND SEPARATION IN CHINA 21
Slide 23: Separation to individual Rare Earths
SEPARATION TO INDIVIDUAL RARE EARTHS Lynas will control the Rare Earths material through the entire supply chain from mine through the processing stages to final separation for end product consumers Lynas is in discussions with several separation plants in China that could either undertake toll sepa
Slide 24: Lynas is the largest shareholder of AMR Technologies Inc.
LYNAS IS THE LARGEST SHAREHOLDER OF AMR TECHNOLOGIES INC. Schematic of AMR Technologies Inc. Market Cap ~ CAD$39M AMR AMR AMR AMM R&D JIANG YIN ZIBO (Magnetics) RE 3240tpa Europe, RE 3000tpa Thailand US & China + Zirconium Lynas maintains its strategic stake in AMR Technologies Inc., the world’s sec
Slide 25: Lynas continues to monitor its 20% stake in AMR
LYNAS CONTINUES TO MONITOR ITS 20% STAKE IN AMR Two RE separation plants in China, AMR 2004 Sales Annualised RE Magnet plant in Thailand, 100% ~ US$53M expanding into Zirconium Korea Focus on high value products via 23% co-product development with China customers, supported by large 27% R&D effort F
Slide 26: Mt Weld also holds the Rare Metals resource
MT WELD ALSO HOLDS THE RARE METALS RESOURCE 25
Slide 27: Mt Weld's defined Rare Metals resource
MT WELD’S DEFINED RARE METALS RESOURCE Million Ta2O5 Nb2O5 TLnO ZrO2 Fe2O3 P2O5 Y2O3 Al2O3 TiO2 Category Tonnes ppm ppm % ppm % % ppm % % Indicated 1.5 0.037 1.40 1.65 0.32 46.5 8.9 0.10 9.94 5.8 Inferred 36.2 0.024 1.06 1.14 0.30 42.6 8.0 0.09 11.3 3.9 Total 37.7 0.024 1.07 1.16 0.30 42.8 8.0 0.09
Slide 28: Conclusion
CONCLUSION Lynas is poised to develop this important and strategic project – building the world’s only fully integrated Rare Earths supply system from mine to customer 27