Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — TREM 11, Pentagon City (March 2011)
27 slides from Arafura Rare Earths's conference presentation, Mar 24, 2011
Slide 1: Arafura Resources – On Track to Supply Rare Earths To Users Worldwide in 2013
For personal use only Arafura Resources – On Track to Supply Rare Earths To Users Worldwide in 2013 Dr. Steve Ward – MD & CEO, Arafura Resources TREM 11, Pentagon City, 23 March 2011
Slide 2: Disclaimer
Disclaimer • Important Notice For personal use only • This presentation contains certain statements which may constitute “forward-looking statements”. Such statements are only expectations or beliefs and are subject to inherent risks and uncertainties which could cause actual values, results or perf
Slide 3: Agenda
Agenda For personal use only Introduce Arafura Developments since TREM 2010 - Global strategic considerations for rare earths - Rare earths supply/demand update Arafura’s Nolans Rare Earths Project progress Arafura’s position as a future supplier of rare earths Summary and Conclusion 3 3
Slide 4: Introduction
For personal use only Arafura Resources Limited Introduction 4 4
Slide 5: Introduction to Arafura
Introduction to Arafura Corporate Summary Business Model - Adding Value in Australia For personal use only Australian Public Company Listed on Australian Securities Exchange ASX in 2003 (code ARU) Nolans Project for Rare Earths Own technology developed Ore Bankable Feasibility Study due en
Slide 6: Nolans Project – Globally Significant
Nolans Project – Globally Significant High potential value, long life, multiple revenue streams with upside potential…. For personal use only Phase 1 Annual Production REO Rare Earths 20,000 t Oxides P2O5 as 61% 80,000 t Financial Evaluation October 2010 Phosphoric Acid October 2010 Project Economic
Slide 7: Developments Since TREM 2010
For personal use only Developments Since TREM 2010 7 7
Slide 8: Current Market Dynamics – The Perfect Storm
Current Market Dynamics – „The Perfect Storm‟ The warning signs have been present for some time….. For personal use only Chinese Export Quota History 2004-2010 (Tonnes REO) Ye Domestic Foreign Total Y on Y ROW ar Companies Companies Change Demand REE Production Trends 20 48,040 17,659 65,699 0% 46,0
Slide 9: Rare Earths – Strategic to Government Policies
Rare Earths – Strategic to Government Policies The strategic importance of Arafura Resources to the global rare earth supply chain. For personal use only March 2010 USA government demand a strategic plan for future USA supplies. Much ongoing focus on this matter, including introduction of new legi
Slide 10: Future Supplies – Background
Future Supplies – Background Lots of hype regarding new sources of rare earths, but, in reality, suppliers For personal use only will struggle to keep up with demand for many years to come ….. Rare Earths is a complex industry and requires a deep understanding; Rare Earths are common in the Eart
Slide 11: Supply and demand
Supply and demand The Industry challenge is on the Supply side to keep up with demand….. For personal use only 450,000 400,000 350,000 Nolans phase 2 300,000 opportunity Overall global Tonnes per annum These forecasts tightness has been 250,000 include new projects: exacerbated in Lynas, Molycorp, 2
Slide 12: Rare Earths – Entering a New Era, Supply Shortage
Rare Earths – Entering a New Era, Supply Shortage Supply For personal use only New Opportunity Era USGS report: Uncertainty Western 2016-2020 after 2002 Supply Era 2011-2015 120 Arafura 100 Molycorp 80 Lynas 60 40 20 China a net importer 0 Long lead time for capacity 20,000 tpa additional De
Slide 13: Future Supplies – Summary
Future Supplies – Summary 2011 – 2015 New Western Supply Era For personal use only Underpinned principally by Molycorp, Lynas and Arafura. Each has/is/will be: - large scale production 20,000+ t p.a. - proven resources - singularly rare earth focused - industry cost competitive 2016 – 2020 Supply
Slide 14: Arafura's World-Class Nolans Project
For personal use only Arafura‟s World-Class Nolans Project Update on Progress 14 14
Slide 15: Progress and Future Plan
Progress and Future Plan “Our vision is to be the recognized leading supplier of rare earths to users worldwide” For personal use only 2010 2011 2012 2013 2014 • Business model established • Company’s Future • Building the • Arafura debut • Delivering our • Australian based Confirmed company vision
Slide 16: Nolans Project – Nolans Bore Mine
Nolans Project – Nolans Bore Mine For personal use only The Nolans Bore Mine and its supporting infrastructure will act as a catalyst for business opportunities throughout Central Australia. 16
Slide 17: Nolans Project – Whyalla Rare Earths Complex
Nolans Project – Whyalla Rare Earths Complex For personal use only The Whyalla Rare Earths Complex will be a very substantial chemical processing operation by Australian standards. 17
Slide 18: Nolans Project – Key Metrics
Nolans Project – Key Metrics Each rare earth project is different in scope and care is required when For personal use only making comparisons….. Capital Cost (A$950 million) caters for mine and four processing plants: Rare Earth Oxides, Phosphoric Acid, Uranium Oxide and Gypsum; Rare Earths – 20
Slide 19: Arafura's Position as a Future Supplier
For personal use only Arafura‟s Position as a Future Supplier 19 19
Slide 20: U.S.A. and Australia – Long term Strategic partners
U.S.A. and Australia – Long term Strategic partners For personal use only “An ally for the 60 years past and Australia is an ally for all the years to come.” - Australian Prime Minister Julia Gillard, Speech to a joint session of the US Congress, March 9, 2011 Successful and longstanding trade rel
Slide 21: U.S.A. Strategic materials – What works already?
U.S.A. Strategic materials – What works already? For personal use only Impractical for any country to be self sufficient in all strategic materials – imports can be used successfully to supplement existing or emerging USA domestic supplies; What works already for the USA in terms of strategic ma
Slide 22: Arafura's Current Sales Activities
Arafura‟s Current Sales Activities For personal use only Arafura is the only new (short to medium term) producer with significant quantities of Rare Earth Oxides still for sale; Good mix of Rare Earth Oxides available and suitable for all end applications; Significant interest in Arafura and i
Slide 23: Nolans Rare Earths mix
Nolans Rare Earths mix For personal use only REO Price % REO Volume Projected Revenue Rare Earth Element (US$/kg) % Revenue contained (tonnes) (US$ millions) p.a. 18 March 2011 Lanthanum 19.74% 3,948 $96.00 $379 15.7% Cerium 47.53% 9,506 $96.00 $913 37.8% Praseodymium 5.82% 1,164 $156.00 $182 7.5% N
Slide 24: Summary and Conclusion
For personal use only Summary and Conclusion 24 24
Slide 25: Arafura Resources – Summary
Arafura Resources – Summary Arafura is a credible part of the future of the Rare Earths industry ….. For personal use only Confirmed Strategy and Business Model World class, large scale, long life, high value creating Nolans Project Strategically important for countries outside China Highly ef
Slide 26: Thank You
26 For personal use only Thank You 26
Slide 27: For more information……
For more information…… For personal use only Nolans Project Fact Sheets at www.arafuraresources.com.au 27
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