Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — FY2019 Earnings Presentation
15 slides from Lynas Rare Earths's earnings presentation, Aug 29, 2019
Slide 1: FY19 Results Analyst and Investor Presentation
“= LYNAS : im aegis 3 CORPORATION 4 Demme. FY19 RESULTS Analyst and Investor Presentation Ty
Slide 2: Disclaimer
Disclaimer 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 and its subsidiaries
Slide 3: Uniquely positioned in the Market
Uniquely positioned in the Market Key Metrics United States Malaysia ASX Ticker LYC ISIN AU000000LYC6 MOU with a skilled US based A dynamic operation in Gebeng with Shares Outstanding as at 30 667,802,000 partner, Blue Line Corporation, to Cracking & Leaching, Solvent Extraction, June 2019 produce s
Slide 4: Continued strong financial performance in challenging conditions
Continued strong financial performance in challenging conditions ▪ 2nd consecutive profit as Rare Earth company ▪ Record total REO production NPAT $80.0m (FY18: $53.1m) ▪ 19,737 tonnes (FY18: 17,753 tonnes) ▪ Record NdPr production EBIT $56.4m (FY18: $81.0m) ▪ 5,898 tonnes (FY18: 5,444) ▪ Strong cas
Slide 5: FY19 Results
FY19 Results 25,000 Production Volume REOt 420 Sales Revenue (A$'m) 370 20,000 320 15,000 270 REOt A$'m 220 10,000 170 5,000 120 70 0 20 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 NdPr (RTS) Others (RTS) EBITDA (A$m) Cash Flow (A$'m) NPBT (A$m) 120 100 140 (excl. AELB, Interest) 100 120 50 10
Slide 6: Mt Weld in FY19
Mt Weld in FY19 Lynas NEXT initiatives ▪ 2018 Mt Weld Mineral Resource and 2018 Mt Weld Ore Reserve: ▪ 70% increase in Mineral Resource contained REO ▪ 60% increase in Ore Reserve contained REO ▪ Ore Reserve supports a 25+ year life at Lynas NEXT rates (7000t NdPr/annum) ▪ 3rd Tailings Storage Facil
Slide 7: Lynas Malaysia in FY19
Lynas Malaysia in FY19 365 Days LTI free Record Production (total REO and NdPr) Lynas NEXT initiatives ▪ Proven ability to produce NdPr at Lynas NEXT rates ▪ Successful start-up of new Nd and Pr separation circuit: • Separated Nd oxide produced from December 2018 • Separated Pr oxide produced from F
Slide 8: Balance sheet fit for growth
Balance sheet fit for growth • Strong Balance Sheet - Debt of US$158.7m of which US$13.7m is convertible bonds - Cash Balance at 30th June 2019: A$89.7m - Strong operating cash flow of A$222.6m over the last eight quarters or A$27.8m on average per quarter • JARE has extended its support to Lynas -
Slide 9: Spotlight on Rare Earths is creating opportunities
Spotlight on Rare Earths is creating opportunities Geopolitics Macroeconomics Market Pricing Market Dynamics Strategic Partners US-China trade Increased government NdPr published price NdPr magnet market NdPr demand is tensions have led to focus, in key markets, decreased in FY19 currently weakened
Slide 10: Malaysian operating licence renewed
Malaysian operating licence renewed On 15 August 2019 the Malaysian government announced the renewal of Lynas Malaysia’s operating licence Subject to meeting specified conditions over the next six months, the renewal provides a clear pathway for Lynas’ continued operation: ▪ Cracking & Leaching relo
Slide 11: Lynas made excellent progress on Sustainability initiatives in FY19
Lynas made excellent progress on Sustainability initiatives in FY19 Gold Medal awarded by Ecovadis – top 5% of 55,000 companies evaluated Joined United Life Cycle Gold Medal for Employee Health & Nations Global Assessment CSR Safety award Compact Lynas became a signatory Lynas conducted Life Lynas M
Slide 12: Making a meaningful contribution to our communities
Making a meaningful contribution to our communities Voices from our local communities ▪ 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 opportunitie
Slide 13: Facing the future with confidence
Facing the future with confidence 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 ▪ Technical, ▪ Strong capital an
Slide 14: Lynas will continue to grow
Lynas will continue to grow Lynas today Lynas 2025 ▪ Uniquely positioned as the only significant rest of ▪ A larger business to meet forecast demand growth world Rare Earths miner and producer ▪ Increased global significance of Rare Earths ▪ Diversified Industrial footprint with processing ▪ World-l
Slide 15: Competent Person's Statement
Competent Person’s Statement 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 full-time employees of C