Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Goldman Sachs Rare Earths Investor Forum 2020
25 slides from Arafura Rare Earths's conference presentation, Dec 2, 2020
Slide 1: ASX Announcement: Goldman Sachs Rare Earths Investor Forum
ASX ANNOUNCEMENT GOLDMAN SACHS – RARE EARTHS INVESTOR FORUM 2 December 2020 For personal use only Arafura Resources Limited (ASX:ARU) (“Arafura” or the “Company”) is pleased to attach a copy of the presentation for the Rare Earths Investor Forum hosted by Goldman Sachs. Mr Gavin Lockyer, Arafura’s M
Slide 2: Goldman Sachs Rare Earths Forum
1/12/2020 Arafura For personal use only Resources Ltd Goldman Sachs Rare Earths Forum 2 December 2020 (ASX:ARU) 1
Slide 3: For personal use only
1/12/2020 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 conjunction with and full r
Slide 4: Arafura & the Nolans Project
1/12/2020 Arafura & the For personal use only Nolans Project (ASX:ARU) 3
Slide 5: Corporate Snapshot and Capital Structure
1/12/2020 Corporate Nolans world class NdPr project in Capital Structure Snapshot Australia ASX Code ARU For personal use only NdPr is the key input for high ASX Share Price (27 November) $0.105 performance NdFeB permanent Shares on Issue 1,168m magnets Market Capitalisation $122.64m NdFeB is a crit
Slide 6: Long Life Asset – NdPr rich & open at depth
1/12/2020 Long Life Asset – NdPr rich & open at depth 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% TREO cut-off grade. Nu
Slide 7: Robust Economics
1/12/2020 Robust Economics Definitive Feasibility Study (DFS) in 2019 For personal use only Ore reserves & mining inventory updated in 2020 Capital cost A$1,026m Low cost producer at US$23.71/kg NdPr (current price US$64.5/kg*) 39-year mining inventory with expansion potential As announced on 16 Mar
Slide 8: Asset Overview
1/12/2020 Asset Overview Nolans site close to existing key infrastructure For personal use only All environmental approvals have been secured in Australia including Stuart Highway 10 km east Alice Springs railyard, airport and other services 135 km south appropriate waste management at site Water su
Slide 9: Fully Costed Single Site Waste Management
1/12/2020 Fully Costed Single Site Waste For personal use only Management Waste rock dumps designed to “encapsulate” naturally occurring radioactive materials (NORM) rock at mine site Mine area surface water management captures sediment Residue storage facility (RSF) with two cells Progressive rehab
Slide 10: All environmental approvals secured
1/12/2020 All environmental approvals secured Extensive community and stakeholder consultation ESG Priorities For personal use only Waste management plan Alignment with global standards tailings and residue facility Sustainability policy and framework completed Assessing impact from addressing globa
Slide 11: Nolans is Shovel Ready
Nolans is Shovel Ready 1/12/2020 Native Title For personal use only Agreement Mining Licence Offtake & Project DFS & Funding Piloting Ore Federal Major Updated Life to Oxides Project Status of Mine IN PROGRESS Federal & NT Appointment of KBR Environmental & Wave to IPMT Approvals Indigenous Customer
Slide 12: Critical Minerals Supply – a Global Issue
1/12/2020 Critical Minerals Supply – a Global For personal use only Issue (ASX:ARU) 11
Slide 13: NdPr Market Opportunity
NdPr Market 1/12/2020 Opportunity For personal use only DEMAND Accelerated demand driven by government policy for renewables and e-mobility Automotive sector is forecast to consume nearly 50% of NdFeB supply Offshore wind energy sector will accelerate with strong growth from new projects SUPPLY Chin
Slide 14: Global Supply Chain
Global Supply Chain 1/12/2020 Ore Concentrate Oxide Metal Alloy Magnet Component EV For personal use only Market Value x 10x 100x 1000x CHINA Arafura’s Alternative Supply Chain China currently exerts control over Arafura plans to produce Oxide in Nolans offtake strategy focused on Governments around
Slide 15: Global Critical Minerals Initiatives
Global Critical 1/12/2020 2050 NET-ZERO 2060 CARBON EMISSIONS NEUTRAL TARGET TARGET Minerals Europe multiple initiatives to remove China has new 5- year plan with Initiatives materials supply emphasis on For personal use only risks for future renewables, e- deployment of low mobility and carbon econ
Slide 16: Australia's Critical Minerals Initiatives
1 1/12/2020 Australia’s MARCH 2019 Austrade Australian Critical Critical Minerals 2 Minerals Prospectus and Australia’s Critical Minerals For personal use only NOVEMBER 2019 Strategy Initiatives Northern Australia Infrastructure 3 Facility (NAIF)-Export Finance Australia (EFA) co-investment barriers
Slide 17: Nolans a Strategic Resource
1/12/2020 Nolans a Strategic China has a dominant market position in global NdPr supply and pricing Resource Multilateral support for supply diversification required – Australia has a For personal use only unique opportunity to play a lead role in this critical raw material (CRM) value chain Nolans
Slide 18: Offtake & Project Financing
1/12/2020 Offtake & Project For personal use only Financing (ASX:ARU) 17
Slide 19: The Offtake Strategy
1/12/2020 The Offtake Sales Distribution Targets Strategy Proportion of For personal use only Customer / Target Region Amount (tpa) Offtake Status Rare Earths Revenue NdPr Oxide – targeting contract with NdFeB magnet companies &/or end users Customer engagement targeted at NdPr users JingCi Material
Slide 20: The ECA-led Funding Strategy
1/12/2020 The ECA-led Nolans is a strategic Australia based Funding NdPr project For personal use only Production aligned with forecast supply Strategy shortages in mid 2020s Product wholly aligned with key ECA mandates of e-mobility and renewables Debt led funding structure, targeting ECA funding E
Slide 21: Targeted Funding Structure
1/12/2020 Targeted Funding Offtakers Structure For personal use only ECA Loans/ ECA debt will be Guarantees Nolans Project critical but not the entire funding solution NAIF Commercial Debt EFA & Other Equity Portfolio of funding Instruments sources Offtake, debt and Strategic Equity strategic equity
Slide 22: Next Steps
1/12/2020 Next Steps For personal use only (ASX:ARU) 21
Slide 23: Current Focus
1/12/2020 Current Focus For personal use only Prioritising project Advancing terms Escalating Continued dialogue work streams against sheets with end users engagement with with Australian & other cash balance to for offtake. financiers & financial governments seeking maintain project advisors for pr
Slide 24: Indicative Timeline
1/12/2020 Indicative Timeline For personal use only Timeline subject to change and is contingent on funding and offtake activities Targeting Front-End Engineering & Design (FEED) to be fully funded prior to commencement Execution Early Contractor Enabling Works Construction Production Readiness Invo
Slide 25: Contact Information
1/12/2020 Contact Information For personal use only Level 6, 432 Murray St Perth WA 6000 Australia +61 8 6370 2800 arafura@arultd.com www.arultd.com (ASX:ARU) 24
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