Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Mining the Territory Conference 2019
23 slides from Arafura Rare Earths's conference presentation, Sep 4, 2019
Slide 1: ASX Announcement: Mining the Territory Conference Presentation
ASX Announcement Presentation - Mining the Territory Conference and the NT Resources Industry Environmental Management & Logistics Forum For personal use only 4 September 2019 Arafura Resources Limited (ASX:ARU) (Arafura or the Company) is pleased to attach a copy of the presentation for the Mining
Slide 2: Emerging as Australia's Next NdPr Producer
For personal use only Arafura Resources Limited (ASX:ARU) Emerging as Australia’s Next NdPr Producer September 2019 Mining the Territory
Slide 3: Important Notice – Disclaimer
Important Notice – Disclaimer 2 For personal use only This presentation has been prepared by Arafura Resources Limited (Arafura, Arafura Resources or the Company) and is of a summary form only and therefore contains general background information which may not be complete. It should be read in conju
Slide 4: Arafura Corporate Snapshot
Arafura Corporate Snapshot 3 For personal use only Capital Structure ASX Code ARU ASX Share Price (02 Sept) $0.068 Shares on Issue 1,055m Market Capitalisation (02 Sept) $71.7m 12 Month Liquidity $46.9m Cash (30 Jun*) $28.6m Debt Nil Enterprise Value (30 Jun) $76.6m July 2019 – investment by Talaxis
Slide 5: Arafura's Nolans Project
Arafura’s Nolans Project 4 For personal use only ▪ DFS completed February 2019 confirming Nolans as a world class DFS NdPr project Complete ▪ Ultra-low cost producer at De-Risked Permitting in Final US$25.94/kg NdPr DFS Stages ▪ Long-life asset – 23-year mine life The based on Ore Reserves only with
Slide 6: 100% Australian Domiciled in the NT
100% Australian Domiciled in the NT 5 For personal use only ▪ DFS includes fully costed permanent disposal and ▪ Stuart Highway 10 km east rehabilitation of tailings and process residues at ▪ Alice Springs railyard, airport and other services 135 km site south ▪ Environmental approvals secured ▪ Ama
Slide 7: Sustainable Supply is Our Value
Sustainable Supply is Our Value 6 For personal use only Extensive community and stakeholder consultation Waste management plan tailings and residue facility Assessing impact from mining, extraction and transport corridor Social License Surface water and groundwater to Operate management plans Biodiv
Slide 8: Benefits for the Territory & Australia
Benefits for the Territory & Australia 7 For personal use only ▪ Direct Capital spend >A$730m ▪ Community Benefits Plan – work in progress ▪ Direct employment in operations 300 ▪ Innovative downstream processing – not just “dig it up and ship it out”, we will value add in Australia ▪ Long mine lif
Slide 9: Local Opportunity
Local Opportunity 8 For personal use only ▪ Local and indigenous procurement strategy currently being developed ▪ Prequalification requirements will be in place for all ALL tenderers ▪ Prequalification requirements will be fully provided and explained well ahead of tender process ▪ Head contractor w
Slide 10: Patented Process – De-risked DFS
For personal use only 9 Patented Process – De-risked DFS Arafura Resources Limited (ASX:ARU) September 2019
Slide 11: Technology Program – De-Risked Process
Technology Program – De-Risked Process 10 For personal use only ✓ Phase 1 Beneficiation • 5,000 kg high- phosphate concentrate • >82% NdPr & ✓Phase 2 >90% P2O5 Phosphate ✓Phase 7 recovery Extraction Rare Earth Beneficiation Pilot Plant • Merchant grade Separation phosphoric acid • Design has suitabl
Slide 12: De-Risked DFS
De-Risked DFS 11 For personal use only ▪ Designed for ramp-up ▪ Risks costed into DFS outcomes o Surge capacities between major process stages including o Conservative three year ramp up schedule included one week concentrate, two weeks pre-leach residue, (29% Y1, 62% Y2, 93% Y3) one week rare earth
Slide 13: The Opportunity
For personal use only 12 The Opportunity Arafura Arafura Resources Resources Limited Limited (ASX:ARU) (ASX:ARU) September 2019
Slide 14: NdPr Market Opportunity
NdPr Market Opportunity 13 For personal use only ▪ Underlying demand for NdFeB magnets across all applications is forecast to grow by 6% p.a. over the period to 2030 ▪ NdFeB demand growth for EV applications is more dramatic and forecast to grow by 24% p.a. ▪ Demand in applications for consumer elec
Slide 15: NdPr Magnet Substitution – EV
NdPr Magnet Substitution – EV 14 For personal use only Modelled effect of increase in NdPr price, NdFeB Magnet v ▪ Chevrolet Bolt: 150 kW NdFeB magnet Induction Motor and incremental Li-ion battery pack motor with 60 kWh lithium-ion battery pack 1 ▪ NdFeB magnet motor cost based on US$8 per kW 2 ▪ E
Slide 16: Supply & Demand Balance (1)
Supply & Demand Balance (1) 15 For personal use only ▪ China continues to dominate the global supply chain being the world's largest producer accounting for about 80% of NdPr for global NdFeB magnet production ▪ Supply reforms, industry consolidation and higher environmental standards will constrain
Slide 17: Supply & Demand Balance (2)
Supply & Demand Balance (2) 16 For personal use only ▪ China will likely to experience some Demand and Supply Growth 2018 to 2030 reduced illegal/undocumented Demand Growth China Supply Global Supply production offsetting increased 30000 production from domestic ores and imported mineral concentrate
Slide 18: Funding to Production
For personal use only 17 Funding to Production Arafura Arafura Resources Resources Limited Limited (ASX:ARU) (ASX:ARU) September 2019
Slide 19: Product Offtake Strategy
Product Offtake Strategy 18 For personal use only ▪ Offtake agreements to underpin project funding ▪ Customer engagement targeted at NdPr users not aligned with China 2025 strategy o Japan – NdFeB magnet manufacturers o Europe & Korea – automotive OEMs and wind turbine makers o China – NdFeB magnet
Slide 20: Project Funding Strategy
Project Funding Strategy 19 For personal use only ▪ Arafura looking to secure a A$1,146m(1) in new funding to execute the Nolans Project ▪ Potential sources of funding include equity, debt, JV and/or project selldown with a strategic investor ▪ DFS completion and environmental approval are critical
Slide 21: Indicative Production Timeline
Indicative Production Timeline 20 For personal use only Arafura Resources Limited (ASX:ARU) September 2019
Slide 22: Thank You
For personal use only Thank You September 2019 Mining the Territory
Slide 23: Long Life Asset
Long Life Asset 22 For personal use only RESOURCES TONNES (m) RARE EARTHS TREO % PHOSPHATE P2O5 % NdPr Enrichment % Measured 4.9 3.2 13 26.1 Indicated 30 2.7 12 26.4 Inferred 21 2.3 10 26.5 TOTAL 56 2.6 11 26.4 As announced on 7 June 2017. 1.0% TREO cut-off grade. Numbers may not compute exactly due
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