Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — Shareholder Meeting (November 2023)
55 slides from Lynas Rare Earths's shareholder meeting presentation, Nov 29, 2023
Slide 1: Lynas Rare Earths Limited Annual General Meeting
For personal use only Lynas Rare Earths Limited Annual General Meeting 29 November 2023
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Lynas Rare Earths Limited (ABN 27 009 066 648) (Lynas as a general guide only and should not be relied upon as an indication or guarantee of future or the Company) this presentation contains summary information about Lynas and its subsidiaries perfor
Slide 3: Acknowledgement of Country
Acknowledgement You will need to of Country For personal use only 1. 2. Lynas xx Rare Earths acknowledges the Traditional Owners of the lands on which we live, work and meet, across Australia. We acknowledge and value Lynas’ Aboriginal and Torres Strait Islander employees, partners and communities a
Slide 4: Chairman's address
For personal use only Chairman’s address Kathleen Conlon 4
Slide 5: CEO presentation
For personal use only CEO presentation Amanda Lacaze 5
Slide 6: Our growth priorities
Our growth priorities For personal use only 1 Safe & sustainable producer 2 Efficient, low impact operations 3 Increasing scale 4 Growing the rare earths market outside China 5 Making a positive community contribution
Slide 7: Safe & sustainable producer
Safe & sustainable producer For personal use only 7
Slide 8: Safety in focus
Safety in focus Safe & Sustainable Producer Lost Time Injury Total Recordable Frequency Rate Injury Frequency For personal use only (LTIFR) Rate (TRIFR) FY23 FY23 1.2 per million hours 3.2 per million hours worked worked FY22 FY22 0.8 per million hours 2.4 per million hours worked worked* • Addition
Slide 9: FY23 financial highlights
FY23 financial highlights You will need to Safe & Sustainable Producer NPAT Sales Revenue For personal use only $310.7m $739.3m FY22 NPAT: $540.8M FY22: $920.0m EBITDA Cash and Short Term Deposits $377.7m $1.01b FY22: $601.2m 30 June 2022: $965.6m 99
Slide 10: FY23 operational highlights
FY23 operational highlights Safe & Sustainable Producer For personal use only 16,780t 6,142t Total REO production NdPr production FY22: 15,970 tonnes FY22: 5,880 tonnes $46.2 $595.5m Average selling price Property, plant & per kg REO equipment capital spend FY22: $60.3/kg 30 June 2022: $186.3m 1010
Slide 11: ESG Commitments
ESG Commitments Safe & Sustainable Communities Environment Producer People • Over 1,100 people globally • Hire locally • Climate Change Policy For personal use only • Focus on safety, equity and • Buy locally • Rehabilitation trials as part of diversity • Be active members of our biodiversity focus
Slide 12: Our GHG emission reduction action plan
Our GHG emission reduction action plan Safe & Sustainable Producer Target: Net Zero GHG emissions by 2050 For personal use only GHG reduction initiatives Contract signed for solar panels at Lynas Pilot underway for state-of-the-art Early works contract awarded for gas Malaysia chemical recycling sys
Slide 13: Meeting market needs for Rare Earths
Meeting market needs for Rare Earths Safe & Sustainable Producer For personal use only 2023 = 45% higher NdPr demand than 2019 (pre-COVID) Modest growth in 2023 mainly due to China’s economic situation Growth expected to accelerate until 2030 13
Slide 14: Celebrating over 10 years of safe operation in Malaysia
Celebrating over 10 years of safe operation in Malaysia Safe & Sustainable Producer For personal use only Videos available at: https://lynasrareearths.com/malaysian-ad-campaign-celebrating-over-10-years-in-malaysia/ 14
Slide 15: Efficient, low impact operations
Efficient, low impact operations For personal use only 15
Slide 16: Mt Weld operations - 2023 highlights
Mt Weld operations - 2023 highlights Efficient, low impact operations For personal use only Record annual Mining campaign 4 167 reverse circulation 19 diamond drill holes concentrate production completed in FY23 holes drilled (36,984m) (5,091 metres) in FY23 to 200 metres below surface & to 200-400
Slide 17: Mt Weld Exploration Program continuing
Mt Weld Exploration Program continuing Efficient, low impact operations • Drilling to 200m and up to 400m below surface and below the Life of Mine Pit Shell For personal use only Carbonatite • Exploration drilling Boundary • Inferred resource drilling Exploration RC • Diamond drilling Exploration Di
Slide 18: Lynas Malaysia operations - 2023 highlights
Lynas Malaysia operations - 2023 highlights Efficient, low impact operations For personal use only Record NdPr 3-year operating MREC receival Capacity uplift to production January – licence renewed to 2 facilities constructed 10.5ktpa NdPr June 2023 March 2026 & commissioned finished product underwa
Slide 19: Lynas Malaysia – MREC filter building & dissolution facility
Lynas Malaysia – MREC filter building & dissolution facility Efficient, low impact operations For personal use only Mixed Rare Earth Carbonate (MREC) receiving facilities constructed Tie in works to integrate new facilities with downstream processes completed and tested Practical completion of prima
Slide 20: Malaysian operating licence updated
Malaysian operating licence updated Efficient, low impact operations For personal use only 3-year Malaysian 24 October 2023 1% of Lynas Malaysia Lynas Malaysia will operating licence operating licence gross sales to be used process both renewed March 2023 updated for R&D lanthanide concentrate with
Slide 21: Lynas Malaysia - Lanthanide concentrate & MREC processing
Lynas Malaysia - Lanthanide concentrate & MREC processing Efficient, low impact operations For personal use only Lynas Cracking & Mixed Rare Earth Kalgoorlie Leaching Carbonate (C&L) (MREC) Feedstock: Lynas Malaysia process flow : Rare Earth Cracking & Solvent Extraction Product Finishing Separated
Slide 22: Increasing scale
For personal use only Increasing scale 22
Slide 23: Growing scale and increasing capacity to meet forecast demand growth
Growing scale and increasing capacity to meet forecast demand growth Increasing scale For personal use only Lynas USA Project: Targeting capacity to produce approx.5,000 Lynas tpa LRE products, Malaysia including approx. 1,250 capacity tpa of NdPr; and expansion: approx.2,500-3,000 tpa Targeting HRE
Slide 24: Kalgoorlie Rare Earths Processing Facility project update
Kalgoorlie Rare Earths Processing Facility project update Increasing scale For personal use only Kiln heated and at Nameplate production capacity Project budget forecast temperature increased to approx. 9,000tpa* updated to approx. $730m* All refractory cured Up from original design of approx. 7,000
Slide 25: Kalgoorlie flythrough
Kalgoorlie flythrough Increasing scale For personal use only 25 Video available at: https://www.youtube.com/@LynasTV
Slide 26: Mt Weld capacity expansion project update
Mt Weld capacity expansion project update Increasing scale For personal use only Minor & preliminary works Mt Weld Life of Mine Proposal Modern Manufacturing Initiative approved March 2023 recommended for $20 million grant received from Australian Earthworks nearing completion, concrete Government t
Slide 27: Transitioning to cleaner energy at Mt Weld
Transitioning to cleaner energy at Mt Weld Increasing scale For personal use only Tender released in FY23 for hybrid gas- Staged hybrid gas-renewable power supply renewable power station at Mt Weld to replace targeting up to 70% renewable energy current diesel power station penetration with mix of s
Slide 28: A Step Change Improvement in Water Recycling
A Step Change Improvement in Water Recycling We are investing over $30m in a state of the art water recycling facility Increasing scale For personal use only TSF Pond Process Water Pond New Process: Targeting up to 90% of tailings water recycled High pH Dissolved Air Chemical Multimedia High Pressur
Slide 29: Mt Weld Expansion timelapse
Mt Weld Expansion timelapse Increasing scale For personal use only Video available at: https://www.youtube.com/@LynasTV 29
Slide 30: U.S. Rare Earths Processing Facility project snapshot
U.S. Rare Earths Processing Facility project snapshot Increasing scale Co-located Heavy and Light Rare Earths Processing Facility in Seadrift, Texas For personal use only US$258 million approx. U.S. DoD grant funding for HRE plant and US$30 million matched grant funding from U.S. DoD for LRE plant 2
Slide 31: Growing the rare earths market outside China
Growing the rare earths market outside China For personal use only 31
Slide 32: Leveraging expertise and investing in clean energy R&D
Leveraging expertise and investing in clean energy R&D Growing the RE market For personal use only The Lynas R&D team are utilizing internal expertise in product purity, surface and formulation to develop new clean energy technologies. The clean energy technologies require a new generation of cataly
Slide 33: Exploring new opportunities at Lynas Malaysia
Exploring new opportunities at Lynas Malaysia Growing the RE market For personal use only Video available at: https://lynasrareearths.com/malaysian-ad-campaign-celebrating-over-10-years-in-malaysia/ 33
Slide 34: Making a positive contribution to our communities
Making a positive contribution to our For personal use only communities 34
Slide 35: Building prosperity in our communities
Building prosperity in our communities Positive contribution to our communities For personal use only $600k 1st 88% $8.5m Reflect level local suppliers in invested in R&D in invested in community Reconciliation Action FY23 FY23 support and initiatives Plan (RAP) endorsed by in FY23 Reconciliation Au
Slide 36: Farewell and thank you to our Chairman, Kathleen Conlon
Farewell and thank you to our Chairman, Kathleen Conlon For personal use only 36
Slide 37: Visit us at LynasRareEarths.com
For personal use only Visit us at LynasRareEarths.com 37
Slide 38: Appendix A: JORC Compliance and Competent Person's Statement
Appendix A: JORC Compliance and Competent Person’s Statement For personal use only Exploration Results The information in this report that relates to the Exploration Results is based on information compiled by Dr Sadangaya Ganesh Bhat. Dr Sadangaya Ganesh Bhat is a full-time employee of Lynas Rare E
Slide 39: Lynas Rare Earths Limited Annual General Meeting
For personal use only Lynas Rare Earths Limited Annual General Meeting 29 November 2023
Slide 40: Resolution – Remuneration Report
Resolution 1 – Remuneration Report This resolution is seeking approval for adoption of the 2023 Remuneration Report which is set out in the Annual Report. The Remuneration Report sets out specific details of the Company’s remuneration For personal use only framework in the year ended 30 June 2023. P
Slide 41: Text of Resolution – Remuneration Report
Text of Resolution 1 – Remuneration Report For personal use only “That the Remuneration Report of the Company for the year ended 30 June 2023 be adopted.” 41
Slide 42: Resolutions
Resolutions 2 - 5 Resolution 2: Re-election of John Humphrey as a Director For personal use only Resolution 3: Re-election of Grant Murdoch as a Director Resolution 4: Re-election of Dr Vanessa Guthrie as a Director Resolution 5: Election of John Beevers as a Director 42
Slide 43: Resolution – Re-election of John Humphrey as a Director
Resolution 2 – Re-election of John Humphrey as a Director Mr Humphrey joined the Company as a Non-Executive Director on 15 May 2017. His key areas of expertise include mergers and acquisitions, corporate finance and corporate governance. For personal use only Mr Humphrey is a senior consultant to Ki
Slide 44: Resolution – Re-election of Grant Murdoch as a Director
Resolution 3 – Re-election of Grant Murdoch as a Director Mr Murdoch joined the Company as a Non-Executive Director on 30 October 2017. Mr Murdoch has more than 38 years of chartered accounting experience. From 2004 to 2011, Mr Murdoch led the corporate finance team for Ernst & For personal use only
Slide 45: Resolution – Re-election of Dr Vanessa Guthrie as a Director
Resolution 4 – Re-election of Dr Vanessa Guthrie as a Director Dr Guthrie was appointed as a Non-Executive Director on 1 October 2020. Dr Guthrie has qualifications in geology, environment, law and business management including a PhD in Geology and over 30 years’ experience in the For personal use o
Slide 46: Resolution – Election of John Beevers as a Director
Resolution 5 – Election of John Beevers as a Director Mr Beevers joined the Company as a Non-Executive Director on 1 May 2023. Mr Beevers is an experienced Board director with over 30 years’ experience in the resources, mining services and For personal use only chemical industries. He has broad inte
Slide 47: Text of Resolution – Re-election of John Humphrey as a Director
Text of Resolution 2 – Re-election of John Humphrey as a Director For personal use only “That John Humphrey, having retired as a director of the Company pursuant to Article 13.2 of the Company’s Constitution and, being eligible, having offered himself for re-election, be appointed as a director of t
Slide 48: Text of Resolution – Re-election of Grant Murdoch as a Director
Text of Resolution 3 – Re-election of Grant Murdoch as a Director For personal use only “That Grant Murdoch, having retired as a director of the Company pursuant to Article 13.2 of the Company’s Constitution and, being eligible, having offered himself for re-election, be appointed as a director of t
Slide 49: Text of Resolution – Re-election of Dr Vanessa Guthrie as a Director
Text of Resolution 4 – Re-election of Dr Vanessa Guthrie as a Director For personal use only “That Vanessa Guthrie, having retired as a director of the Company pursuant to Article 13.2 of the Company’s Constitution and, being eligible, having offered herself for re-election, be appointed as a direct
Slide 50: Text of Resolution – Election of John Beevers as a Director
Text of Resolution 5 – Election of John Beevers as a Director For personal use only “That John Beevers, who was appointed by the Board as a new director of the Company since the previous Annual General Meeting, having offered himself for election, be appointed as a director of the Company.” 50
Slide 51: Resolution – Authorisation Of Issue Of Performance Rights
Resolution 6 – Authorisation Of Issue Of Performance Rights Under Listing Rule 7.1, the Company may issue or agree to issue equity securities equivalent to 15% of the total issued equity securities For personal use only in the Company in any 12 month period without obtaining shareholder approval. Li
Slide 52: Text of Resolution – Authorisation Of Issue Of Performance Rights
Text of Resolution 6 – Authorisation Of Issue Of Performance Rights For personal use only “That, for the purpose of Rule 7.2 Exception 13 of the Listing Rules of ASX Limited and for all other purposes, the Company hereby approves the issue of Performance Rights (“Performance Rights”) under the Lynas
Slide 53: Resolution – Grant of Performance Rights for CEO Amanda Lacaze
Resolution 7 – Grant of Performance Rights for the benefit of CEO & Managing Director – Amanda Lacaze For personal use only The Company proposes to issue up to 405,944 Performance Rights for the benefit of its CEO and Managing Director, Amanda Lacaze. Each Performance Right is a right to acquire one
Slide 54: Text of Resolution – Grant of Performance Rights for CEO Amanda Lacaze
Text of Resolution 7 – Grant of Performance Rights for the benefit of CEO & Managing Director – Amanda Lacaze For personal use only “That pursuant to and in accordance with Listing Rule 10.14 of the ASX Listing Rules, and for all other purposes, the Company approves and authorises the Directors of t
Slide 55: Lynas Rare Earths Limited Annual General Meeting
For personal use only Lynas Rare Earths Limited Annual General Meeting 29 November 2023
Lynas Rare Earths — Shareholder Meeting (November 2023) on 6ix