Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — FY2020 Earnings Presentation
20 slides from Lynas Rare Earths's earnings presentation, Aug 17, 2020
Slide 1: FY20 Results Investor Presentation
LYNAS CORPORATION FY20 Results Investor Presentation 17 August 2020 1
Slide 2: Disclaimer
Disclaimer This Presentation has been prepared by Lynas Corporation Limited (ABN 27 009 066 648) (Lynas or financial position and performance are also forward-looking statements. Forward-looking statements, the Company) This Presentation contains summary information about Lynas and its subsidiaries
Slide 3: Solid revenue & positive operating cash flows
Solid revenue & positive operating cash flows Revenue Cash at year end • FY20 Production and Revenue affected by $305.1m $101.7m • Annual processing limit production halt (December 2019) • COVID-19 temporary shutdown (March-May 2020) (FY19: $363.5m) (FY19: $89.7m) • Decision to restart after the COV
Slide 4: FY20 Results
FY20 Results Production Volume (REOt) COVID-19 25,000 COVID-19 420 Sales Revenue (A$'m) production halt production halt 370 20,000 320 15,000 270 220 10,000 170 120 5,000 5,223 5,444 5,898 4,656 70 2,257 3,896 0 20 FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20 NdPr (RTS) Others (RTS) T
Slide 5: FY20 Sales Volume & Revenue were affected by temporary production halts
FY20 Sales Volume & Revenue were affected by temporary production halts December COVID-19 December COVID-19 production production production production halt halt halt halt 6,000 Sales Volume (REOt) 120 Sales Revenue (A$'m) 5,000 100 4,000 80 3,000 60 2,000 40 1,000 0 20 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY
Slide 6: Key achievements in FY20
Key achievements in FY20 Regulatory Lynas 2025 growth vision Sustainability People Lynas Malaysia operating Progress on key Lynas 2025 Awarded Gold EcoVadis Excellent safety outcomes licence renewed for 3 years projects CSR rating • Operating licence renewed • Kalgoorlie selected as • Gold medal Eco
Slide 7: Caring for our people, our communities and the environment
Caring for our people, our communities and the environment FY20 Achievements • Excellent safety record continued • 12-month rolling lost time injury frequency rate was 0.8 per million hours worked (2019: 0.9 per million hours) • Both sites were proactive in complying with industry best practices • A
Slide 8: Delivering safe and sustainable production
Delivering safe and sustainable production • FY20 Production throughput was affected by 2 temporary production halts • 6 week temporary shutdown of the Lynas Malaysia plant from 22 March 2020 in line with the Malaysian government’s COVID-19 Movement Control Order • A temporary production halt in Dec
Slide 9: Quality initiatives are delivering positive outcomes in a challenging Rare Earths market
Quality initiatives are delivering positive outcomes in a challenging Rare Earths market • COVID-19 has heightened the spotlight on Rare Earths • Increased appetite for reliable, diversified RE supply chain • Lynas is a proven, reliable supplier to key markets • Continuing to engage with end users a
Slide 10: Malaysian operating licence renewed for 3 years
Malaysian operating licence renewed for 3 years • Lynas Malaysia’s operating licence was renewed for three years to March 2023 with key conditions that Lynas expects to be able to satisfy (27 February 2020) • The licence renewal provides the foundation for continued operation of Lynas Malaysia as we
Slide 11: Coming through COVID-19 in good shape
Coming through COVID-19 in good shape • Lynas entered the COVID-19 pandemic in robust financial shape as a result of a number of years of prudent capital management • Both sites rapidly implemented recommended government safety and health recommendations and industry best practices in March 2020 Tem
Slide 12: Supplying essential materials to exciting growth industries
Supplying essential materials to exciting growth industries Key Investment Electric Vehicles (EV) – Including Electric drive components, Hybrid motor technology, Electric public transport and Electric aviation Drivers Benefits: Lighter and more efficient high-performance motors Rare Earth products:
Slide 13: Progress on key Lynas 2025 projects
Progress on key Lynas 2025 projects Malaysia: Investing in increased United States: Filling a market gap Mt Weld, WA: Production ramp up to Kalgoorlie, WA: Building a new Rare downstream processing, product with new separation and product meet forecast demand growth Earth Processing Facility range,
Slide 14: FY20 achievements for our planned Kalgoorlie Rare Earth Processing Facility
FY20 achievements for our planned Kalgoorlie Rare Earth Processing Facility • Construction expected to commence in mid 2021, subject to approvals • Facility will process Rare Earth concentrate from Mt Weld to produce mixed Rare Earth carbonate that will undergo further processing at Lynas Malaysia •
Slide 15: Heavy Rare Earth separation is an attractive strategic project
Heavy Rare Earth separation is an attractive strategic project Mt Weld, WA: Detailed planning & design in Market: Strong appetite for Maximising our Heavy Rare Process design finalized progress separated HREs outside China Earths FY2020 Progress • HRE Process design led by • Strong demand for Dy/Tb
Slide 16: Organizational changes to support the Lynas 2025 vision
Organizational changes to support the Lynas 2025 vision • Lynas is entering an exciting period of transformation and growth as we deliver on the Lynas 2025 vision. To support this change, global operations have been restructured into two new operations units: • Upstream Operations unit: Accountable
Slide 17: Meeting our customers' needs for sustainably produced Rare Earths
Meeting our customers’ needs for sustainably produced Rare Earths We care for our people: We care for the environment: • The health & safety of our • Environmentally-responsible people, our communities and the Rare Earths producer by design environment is always our first priority • Mine to magnet t
Slide 18: The Rare Earths Company of Choice
The Rare Earths Company of Choice Market Opportunities Unique Market Established Operations Growth & Expansion Proven Team Position with Significant IP Opportunities • Long term demand • World’s second largest • Proven and profitable • Mt Weld – Tier 1 Deposit • Corporate culture outlook for key Rar
Slide 19: Visit our Investor Centre at: www.lynascorp.com
Visit our Investor Centre at: www.lynascorp.com 19
Slide 20: Appendix A: JORC Compliance
Appendix A: JORC Compliance The information in this presentation is extracted from the report entitled Lynas Corporation 2019 Annual Report created on (October 2 2019) and is available to view on (https://www.lynascorp.com/wp-content/uploads/2019/10/191002-Annual-Report- Appendix-4G-and-Corporate-Go