Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — Diggers & Dealers Mining Forum 2019
21 slides from Lynas Rare Earths's conference presentation, Aug 7, 2019
Slide 1: Lynas: Growing with the Market
For personal use only LYNAS: GROWING WITH THE MARKET Diggers & Dealers Mining Forum 7 August 2019 Amanda Lacaze, CEO & Managing Director 1
Slide 2: Disclaimer
Disclaimer For personal use only 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
Slide 3: We have delivered on our promises
We have delivered on our promises LYNAS ENTERPRISE VALUE For personal use only 4000 3500 Sales Revenue (A$'m) 3000 AUD millions 12,000 Production Volume REOt 220 2500 10,000 170 2000 8,000 1500 Debt 1000 A$'m REOt 6,000 120 500 4,000 70 0 2,000 2010 FY 2012 FY 2014 FY 2016 FY 2018 FY 0 20 H115 H215
Slide 4: Our product offering today
Our product offering today For personal use only Product Capacity REO Market tonnes/annum NdPr+Nd+Pr Oxide & Metal 7,200 NdPr 5,400 Magnets Nd 1,500 Magnets, Catalysts Pr 300 Catalysts, Pigments, Magnets SEG Oxide 1200 HRE Separation Ce-La Carbonate, Oxide, Metal, Compounds 16,000 Ce Carbonate, Oxid
Slide 5: Increased product range through Lynas NEXT
Increased product range through Lynas NEXT For personal use only Nd oxide - targeting 1500t per annum Pr oxide - targeting 300 tonnes/annum for magnets & catalysts for catalysts, pigments & magnets 5
Slide 6: Mt Weld is favoured by grade, NdPr content, total REO and life of mine
For personal use only Mt Weld is favoured by grade, NdPr content, total REO and life of mine 66
Slide 7: The world's largest, most modern RE plant designed on best practice sustainability principles
The world’s largest, most modern RE plant designed on best practice sustainability principles For personal use only 77
Slide 8: Our competitiveness continues to improve
Our competitiveness continues to improve For personal use only • From 2014 to 2016, Lynas operations stabilised Lynas NdPr Production cost Index: 100=Average 2016 • Mid-2016, both plants were running 250% at design capacity 200% • Through Lynas NEXT, production capacity has increased to 7.2 ktpa of
Slide 9: Improving Capital Efficiency
Improving For personal use only Capital Efficiency Phase 1: 29 Flotation Cells Phase 2: 9 Flotation Cells Lynas NEXT: 1 Flotation Cell Lynas 2025: 3-5 Flotation Cells Scoping hybrid power station with potential to 40,000L per month reduction in supply up to diesel consumption through the 50%
Slide 10: Lynas NEXT - Cracking and Leaching
Lynas NEXT - Cracking and Leaching For personal use only MgO Circuit Split, new heat exchangers added, new pumping designs, new hopper designs, changed filter configurations Redesigned WGT ducting Emissions improvements 10
Slide 11: Demand for NdPr is forecast to accelerate from 2021
Demand for NdPr is forecast to accelerate from 2021 For personal use only Global demand for fresh NdPr Oxide 70.0 • Energy International Agency: 125-220m electric cars on the road in 2030 60.0 Equivalent to 88-155ktns additional supply of NdPr over next 10 years REO kt of NdPr Oxide 50.0 40.0 • Mo
Slide 12: The automotive industry is embracing Rare Earth Electric Vehicle Drives
The automotive industry is embracing Rare Earth Electric Vehicle Drives For personal use only • Today, electric vehicles are expensive and the battery represents 50% of the cost • A Rare Earth Electric Vehicle Drive is the solution - 2kg of REE magnets at a cost of US$100/vehicle - REE motor efficie
Slide 13: Lynas is a key supplier to the global Rare Earths value chain
Lynas is a key supplier to the global Rare Earths value chain For personal use only Mining Separation Metal Alloy Magnet Component OEM • Security of supply from Lynas has contributed to growth in Japanese industry • Lynas provides rest of world automotive manufacturers with confidence in Rare Earths
Slide 14: Malaysia regulatory update
Malaysia regulatory update For personal use only Operating License renewal • On 1 August 2019 the Malaysian • Full Operating Stage License (FOSL) due for Prime Minister indicated the renewal by 3 September 2019 export of WLP from Malaysia will • License renewal application progressing to a no longer
Slide 15: Lynas 2025: Growing with the market
Lynas 2025: Growing with the market For personal use only A larger business to meet • Efficient capacity expansion leveraging Lynas’ unique assets forecast demand growth • 10,500 tpa NdPr products Diversified Industrial footprint • Upstream processing close to the resource with processing facilities
Slide 16: Our track record underpins our confidence in the future
Our track record underpins our confidence in the future For personal use only Malaysia A dynamic operation in Gebeng with increased investment in downstream processing; SX, Product Finishing, value added processing and recycling. United States Western Australia Exciting specialty materials An expand
Slide 17: Lynas is an environmentally-responsible supplier of Rare Earths
Lynas is an environmentally- Rare Earths are critical to technologies responsible supplier of Rare Earths For personal use only needed for low-carbon economies through their unique applications Lynas was designed from the ground up as a state-of-the-art environmentally- responsible Rare Earths opera
Slide 18: We are highly engaged with our stakeholders
We are highly engaged with our stakeholders For personal use only Our People Our Customers Investors Communities Government 18
Slide 19: We make a meaningful contribution to our communities
We make a meaningful contribution to our communities For personal use only The safety of our people, our communities and the environment is our first priority We aim to make a positive contribution to local employment, skills, education, and health We provide meaningful opportunities for Lynas staff
Slide 20: Facing the future with confidence
Facing the future with confidence For personal use only Mt Weld Market position Inhouse Proven Operations Will to win • A true Tier 1 • World’s second Intellectual • Established • Corporate culture Resource largest Rare Earths Property operating assets founded on our • Continuing producer • Technica
Slide 21: Competent Person's Statement
Competent Person’s Statement For personal use only COMPETENT PERSON’S STATEMENTS– MINERAL RESOURCES The information in this report that relates to the 2018 Mineral Resources is based on information compiled by Mr Alex Whishaw under the guidance of Dr Andrew Scogings. Mr Wishaw and Dr Scogings are fu
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