Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Investor Presentation (November 2018)
23 slides from Arafura Rare Earths's investor presentation, Nov 12, 2018
Slide 1: Accelerating Towards Final Investment Decision
For personal use only Not for release or distribution in the United States of America Arafura Resources Limited “Accelerating Towards Final Investment Decision” November 2018 Investor Presentation
Slide 2: Important Notice - Disclaimer
Not for release or distribution in the United States of America 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 i
Slide 3: Introducing Arafura
Not for release or distribution in the United States of America Introducing Arafura 3 For personal use only ▪ Arafura Resources Limited (“Arafura”, “Company”) is NdPr Oxide Pricing US$/kg $85.0 an ASX listed company focussed on developing its $80.0 100% owned Nolans Rare Earths Project located in th
Slide 4: Investment Highlights
Not for release or distribution in the United States of America Investment Highlights 4 For personal use only ▪ Globally Strategic Asset – Nolans Rare Earth Project is one of the world’s largest undeveloped NdPr projects with an existing JORC Australian Project Compliant Resource of 56Mt at 2.6% TRE
Slide 5: Corporate Snapshot
Not for release or distribution in the United States of America Corporate Snapshot 5 For personal use only Capital Structure ASX Code ARU ASX Share Price (15 Oct) $0.07 Shares on Issue 629,595,910 Market Cap (15 Oct) $44.1m 12 Month Liquidity $25.0m Cash (30 Sept ‘18) $8.1m Debt Nil Enterprise Value
Slide 6: Experienced Board
Not for release or distribution in the United States of America Experienced Board 6 For personal use only IAN KOWALICK TERRY GROSE NON-EXECUTIVE CHAIRMAN NON-EXECUTIVE DIRECTOR Ian Kowalick has qualifications in science, engineering, Terry Grose has a strong commercial economics, and finance. From 1
Slide 7: Experienced Management
Not for release or distribution in the United States of America Experienced Management 7 For personal use only PETER SHERRINGTON RICHARD BRESCIANINI CHIEF FINANCIAL OFFICER & COMPANY GENERAL MANAGER EXPLORATION & SECRETARY DEVELOPMENT Peter commenced employment with Arafura in 2008 as Richard has ov
Slide 8: NdPr Price Linked to Geopolitical Events
Not for release or distribution in the United States of America NdPr Price Linked to Geopolitical Events 8 For personal use only 2,000 2.50 Arafura 15 Year Share Price Performance and Volume 3 2.00 1,500 $90m raised at GFC 6 $1.20 per share 1.50 Volume ('000) Price ($) 1,000 Global downturn 1.00 ECE
Slide 9: Geopolitical Tensions are Rising
Not for release or distribution in the United States of America Geopolitical Tensions are Rising 9 For personal use only ▪ US dominated the rare earth market supply in the 1960s. ▪ In 1992, Chinese Leader Deng Xiaoping, said, “The Middle East has oil; we have rare earths”. China’s embarks upon coord
Slide 10: China Becoming a Net Importer of NdPr
Not for release or distribution in the United States of America China Becoming a Net Importer of NdPr 10 For personal use only ▪ China’s domestic NdPr consumption will NdPr Oxide China increase by over 30% in the next 5 years as it 60,000 pursues clean energy objectives and global Tonnes leadership
Slide 11: 100% Australian Domiciled Project
Not for release or distribution in the United States of America 100% Australian Domiciled Project 11 For personal use only Arafura Resources Limited (ASX:ARU) November 2018
Slide 12: Close To Key Infrastructure
Not for release or distribution in the United States of America Close To Key Infrastructure 12 For personal use only ▪ Stuart Highway is 10 km east. ▪ Alice Springs railyard, airport and other services are 135 km south. ▪ Amadeus natural gas pipeline is adjacent to project site. ▪ Water supply is 30
Slide 13: Flowsheet Piloting Nearing Completion
Not for release or distribution in the United States of America Flowsheet Piloting Nearing Completion 13 For personal use only Phase 1 Phase 2 Phase 3 Phase 4 Phases 5 & 6 Phase 7 Beneficiation Phosphate Extraction Bulk Pre-Leach Acid Bake Rare Earth Processing Rare Earth Separation • 5,000 kg high-
Slide 14: Definitive Feasibility Study Expected December 2018
Not for release or distribution in the United States of America Definitive Feasibility Study Expected December 2018 14 For personal use only External Team appointed Internal Team appointed ▪ Process plant, infrastructure and lead study ▪ Additional Director: Mark Southey, engineer: Hatch previously
Slide 15: Favourable Project Economics
Not for release or distribution in the United States of America Favourable Project Economics 15 For personal use only ▪ Ultra competitive operating costs US$6.23/kg TREO or US$24.38/kg NdPr oxide is the lowest amongst peers. ▪ Highly leveraged to forecast NdPr price increases with NdPr accounting fo
Slide 16: Project Funding Strategy
Not for release or distribution in the United States of America Project Funding Strategy 16 For personal use only ▪ Advancement of environmental approval critical enabler for engagement with offtakers, financiers and Export Credit Agencies (ECA). ▪ ECAs are key to providing government-backed funding
Slide 17: Timeline & Targets
Not for release or distribution in the United States of America Timeline & Targets 17 For personal use only Arafura Resources Limited (ASX:ARU) November 2018
Slide 18: Why Arafura?
Not for release or distribution in the United States of America Why Arafura? 18 For personal use only ✓ Australian project of global strategic importance. ✓ 100% owned asset with 30+ year mine life. ✓ Highly leveraged to forecast NdPr price increases. ✓ Environmental approval secured. ✓ DFS completi
Slide 19: Appendices
For personal use only 19 Appendices Arafura Resources Limited (ASX:ARU) November 2018
Slide 20: Appendix A: Mineral Resources
Not for release or distribution in the United States of America Appendix A: Mineral Resources 20 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 1% TREO cut
Slide 21: Appendix B: Process Flowsheet
Not for release or distribution in the United States of America Appendix B: Process Flowsheet 21 For personal use only Arafura Resources Limited (ASX:ARU) November 2018
Slide 22: Appendix C: Established Markets & Growing Applications
Not for release or distribution in the United States of America Appendix C: Established Markets & Growing Applications 22 For personal use only Source: Adamas Intelligence, Arnold Magnetic Technologies, Japanese industry participants, Roskill Arafura Resources Limited (ASX:ARU) November 2018
Slide 23: Appendix D – NdFeB Magnet Vital To Automotive Market
Not for release or distribution in the United States of America Appendix D – NdFeB Magnet Vital To Automotive Market 23 For personal use only 25,000 tonnes NdFeB magnets used in 2016 automotive market growing at 9% CAGR (total market 135,000 tonnes) EVs and hybrids represent additional growth throug
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