Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — Lynas — Diggers and Dealers Mining Forum 2018
25 slides from Lynas Rare Earths's conference presentation, Aug 6, 2018
Slide 1: Diggers and Dealers Mining Forum
For personal use only LYNAS CORPORATION Diggers and Dealers Mining Forum 6 August 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: Lynas is a proven and profitable producer of specialty Rare Earth Materials
Lynas is a proven and profitable producer of specialty Rare Earth Materials Type of Share Ordinary For personal use only ASX Ticker LYC ▪ Operates a high grade mine at Mt Weld, Western ISIN AU000000LYC6 Australia and a reliable, sustainable chemical Shares Outstanding as at 3 August 662,547,136 proc
Slide 4: A global business founded on the superior Mt Weld Rare Earth deposit
A global business founded on the superior Mt Weld Rare Earth deposit ▪ Mt Weld – located 35km south of For personal use only Laverton in Western Australia ▪ Lynas Advanced Materials Plant (LAMP) – integrated manufacturing facility, located in Kuantan, Malaysia Europe & USA China & Japan Important s
Slide 5: Not just the world's quarry
For personal use only Not just the world’s quarry 928 metres of kilns and tunnel furnaces Lynas adds value to its rich Mt Weld resource 4 rotary kilns (60m long) 8 tunnel furnaces (88m long) Evolving to a strong 46 Plate & Frame Pressure Filters speciality materials 44 High Speed Centrifuges busines
Slide 6: Lynas NEXT: Investing in our future, Growing with the market
Lynas NEXT Investing in our future, Growing with the market For personal use only Increase productivity Deliver better returns Strengthen the Continue to drive Contribute to total of our existing on total Rare Earths business with new total cost down market growth assets processed customer offers In
Slide 7: A spotlight on Mt Weld
For personal use only A spotlight on Mt Weld 7
Slide 8: Mt Weld: A Tier 1 Rare Earth Deposit
Mt Weld: A Tier 1 Rare Earth Deposit Favoured by ▪ Simple open pit mine For personal use only ▪ Grade ▪ Currently mining, by campaign, the Central Lanthanide Deposit (CLD) ▪ NdPr Content ▪ Mt Weld is considered as a Tier 1 deposit (high grade and long life) ▪ UBS rates the in-situ value of the Mt We
Slide 9: 25+ year Ore Reserve at Lynas NEXT rates
25+ year Ore Reserve at Lynas NEXT rates ▪ As a specialty materials business, Lynas needs For personal use only ongoing access to an “assured” reserve ▪ In practical terms, Lynas seeks to maintain a 25+ year ore reserve ▪ Today we announced a substantial upgrade to the Mt Weld Rare Earth Mineral Res
Slide 10: 2018 Mt Weld Mineral Resource: 70% increase in contained REO
2018 Mt Weld Mineral Resource: 70% increase in contained REO Transition and Fresh mineralisation included in inferred category For personal use only Measured Indicated Inferred Total Total Type Tonnes TREO Tonnes TREO Tonnes TREO Tonnes TREO TREO Mt % Mt % Mt % Mt kt LI, CZ & MN 9.3 8.9 8.6 5.4 3.7
Slide 11: 2018 Mt Weld Mineral Resource: Depth Extension
2018 Mt Weld Mineral Resource: 70% increase in contained REO Depth Extension is ~half of the increase in contained REO For personal use only ▪ 3 REO mineralogical layers of economic significance: ▪ Li (iron oxide, monazite) ▪ CZ (monazite, goethite) +10% REO ▪ AP (apatite, monazite, iron oxide) Zone
Slide 12: 2018 Mt Weld Mineral Resource: Duncan – East of Dyke & Halo
2018 Mt Weld Mineral Resource: 70% increase in contained REO Duncan – East of Dyke & Halo is ~quarter of increase in contained REO (JORC 2012, 5 October 2015 ASX Announcement) For personal use only ▪ Duncan - halo of HRE around the CLD within the same host lithology ▪ Central Lanthanide deposit (CLD
Slide 13: 2018 Mt Weld Mineral Resource: Block Model Extension
2018 Mt Weld Mineral Resource: 70% increase in contained REO Block Model Extension (North & West) is ~quarter of increase in contained REO ▪ Inclusion of material surrounding high grade core. For personal use only ▪ The 2018 block model is significantly larger in all resource categories 2014 Resourc
Slide 14: 2018 Mt Weld Ore Reserve: 60% increase in contained REO
2018 Mt Weld Ore Reserve: 60% increase in contained REO 19.2Mt @ 8.6 % REO for 1,690 kt contained REO For personal use only ORE RESERVES TONNAGE REO CONTAINED CATEGORY (Million tonnes) (%) TREO kt Ore Reserves within Pit boundary Proven 14.1 8.8 1,240 Probable 5.1 7.7 390 Ore Reserves On Stockpiles
Slide 15: 2018 Mt Weld Ore Reserve: Increase from Depth Extension and Duncan
2018 Mt Weld Ore Reserve: 60% increase in contained REO Increase from Depth Extension, Duncan and Lateral Resource Extension For personal use only Geological and Metallurgical test work has confirmed CLD and Duncan as one deposit 2015 Pit Shape ▪ Duncan is treatable via flotation flowsheet ▪ Duncan
Slide 16: 2018 Mt Weld Ore Reserve: Lateral Resource Extension
2018 Mt Weld Ore Reserve: 60% increase in contained REO Increase from Depth Extension, Duncan and Lateral Resource Extension For personal use only 16
Slide 17: Lynas NEXT: Growing with the market
For personal use only Lynas NEXT Growing with the market 17
Slide 18: Rare Earths are essential for many future facing technologies
Rare Earths are essential for many future facing technologies Where RE Property RE Allows Final Impact Key For personal use only Products Wind Permanent Nd Pr, Dy No gear box (Cost) Energy turbines magnet Better yield in light produced at generators winds lower cost Cars Permanent Nd Pr, Dy Electric
Slide 19: Lynas NEXT: Investing in our future
Lynas NEXT: Investing in our future For personal use only Increase productivity Deliver better returns Strengthen the Continue to drive Contribute to total of our existing on total Rare Earths business with new total cost down market growth assets processed customer offers Invest in improved plant E
Slide 20: Lynas NEXT: How are we doing it?
Lynas NEXT: How are we doing it? Not just on time and on budget For personal use only ▪ Executing while still producing ▪ Delivered by an In-house Project Team with intimate understanding of the process New design off-gas ducting that will last ▪ Clearly understanding what is needed and what is not
Slide 21: Excellent Return on Capital
Excellent Return on Capital Incremental CAPEX: $22.5m For personal use only Total CAPEX: $35m Capex per Total Capex NdPr per NdPr per tonne per Invested annum month year A$M REOt REOt A$/kg Establishment costs + Production Lines 749 1,956 163 382.9 Additional Production Lines 259 3,282 274 78.9 1,00
Slide 22: Lynas is a proven and profitable producer
Lynas is a proven and profitable producer For personal use only In Quarter 4: ▪ Cashflows from operating activities of A$20.7 million Continued focus on ▪ Record production financial and ▪ Total REO production of 4,800 tonnes operational ▪ Total NdPr production of 1,447 tonnes excellence ▪ Processin
Slide 23: Performance on all key metrics continues to improve
Performance on all key metrics continues to improve Production Volume Sales Volume (tonnes) 20,000 17,753 20,000 Others Sales 17,672 For personal use only 18,000 16,003 18,000 16,000 NdPr Sales 14,615 16,000 12,631 14,000 12,513 14,000 12,000 12,000 REOt 8,799 REOt 10,000 10,000 7,883 8,000 8,000 6,
Slide 24: We have Significant Market Leading 1st Mover benefits
We have Significant Market Leading 1st Mover benefits ▪ Proven and profitable producer serving high growth markets For personal use only ▪ Only integrated miner and processor outside China ▪ Ore Reserve that underpins continued growth ▪ Efficient, proven processing capability ▪ Established customer
Slide 25: Competent Person's Statement
Competent Person’s Statement COMPETENT PERSON’S STATEMENTS– MINERAL RESOURCES For personal use only 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