Slide 1: Rare Earths – we touch them everyday
Lynas Corporation Rare Earths – we touch them everyday For personal use only Investor Presentation 31 October 2013
Slide 2: Disclaimer
Disclaimer For personal use only This Presentation has been prepared by Lynas Corporation Limited (ABN 27 009 066 648) (Lynas or the Company). This Presentation contains summary information about Lynas and its subsidiaries (Lynas Group) and their activities current as at the date of this Presentatio
Slide 3: Safety – our first priority
Safety – our first priority For personal use only September 2013 quarter Lynas global operations (employees and contractors) were Lost Time Injury free during the September quarter. The 12-month rolling Lost Time Injury Frequency Rate for Lynas global operations as at the end of September was 0.
Slide 4: Lynas Advanced Materials Plant – operational update
Lynas Advanced Materials Plant – operational update For personal use only September 2013 quarter Production: 253 tonnes REO equivalent products Shipments: 218 tonnes REO equivalent products Future milestones Optimise production at the Phase 1 capacity level of 11,000tpa REO until market prices
Slide 5: Lynas Advanced Materials Plant – current work programs
Lynas Advanced Materials Plant – current work programs For personal use only Cracking units Work programs in the cracking units are complete. They have addressed: Wearing of stainless steel devices (replaced with alloys) Clogging of equipment (due to viscosity of material) Leaching units W
Slide 6: Lynas Advanced Materials Plant – synthetic mineral products program
Lynas Advanced Materials Plant – synthetic mineral products program For personal use only Batching plant and RB-10 product Latest developments Market trials and product testing continue across the range of synthetic gypsum products with further work being done with potential customers in agricultu
Slide 7: Rare Earths prices
Rare Earths prices For personal use only Mt Weld basket price history 2008-2013 Mt Weld basket price history last 12 months 250 50 200 40 30 USD/REO kg 150 USD/REO kg 100 20 50 10 0 0 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 China domestic China FOB
Slide 8: Where is the RE market today?
Where is the RE market today? For personal use only Since the peak of the RE crisis in However, In recent months, prices for a number of RE mid 2011 when prices became there are products have moved again as a result of: unsustainable for RE consumers, emerging RE prices have decreased to levels that
Slide 9: RE market outlook – key demand side trends
RE market outlook – key demand side trends For personal use only A number of key trends will drive the future growth of the global RE market 1 Energy efficient and green applications continue to accelerate strong NdPr demand growth Estimated REO demand in magnet industry 50 Wind energy, HEV/EVs, g
Slide 10: RE market outlook – key demand side trends
RE market outlook – key demand side trends For personal use only A number of key trends will drive the future growth of the global RE market Chinese exports of lanthanum products (REO equivalent) 3 NiMH battery technology is continued to be used in HEVs, potentially securing La 18000 demand in the f
Slide 11: RE market outlook – summary
RE market outlook – summary For personal use only Based upon forecast demand in key end markets, the global RE market could grow at 5-6% per annum to 2020 with demand for some elements growing at higher rates However, the RE market will not grow to its full potential unless there is long term pric
Slide 12: Financial overview
Financial overview For personal use only September quarter CASH FLOW A$M OPENING CASH BALANCE 1 JULY 2013 141.4 Average selling price increased to around US$22.70/kg REO (revenue basis), from around US$8.00/kg REO INFLOWS (revenue basis) in the prior quarter, largely due to Cash receipts from the
Slide 13: Key investment themes
Key investment themes For personal use only Company overview 1 Rare Earths production and shipments from the LAMP 2 Focus on cost savings and “right-sizing” business, yet ready to respond to improved market conditions 3 Experienced management team 4 Off-take arrangements through strong customer rela
Slide 14: Rare Earths market data - Disclaimer
Rare Earths market data - Disclaimer For personal use only The slides in this presentation containing Rare Earths market data have been sourced from independent analysis of end application demand, along with Lynas estimates of quantities of Rare Earths end use in various key applications. Althou