Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Corporate Update (October 2007)
10 slides from Arafura Rare Earths's corporate update, Oct 30, 2007
Slide 1: Quarterly Report Activity Summary
Arafura Resources Ltd For personal use only Quarterly Report Activity Summary For the period ending 30 September 2007 Published 30 October 2007
Slide 2: Summary
Summary For personal use only Nolans Nolans Valuation 5km to gas line • Nolans PFS estimated at post tax NPV of $1.1 billion 10km to Stuart Highway • Total sales revenue of $8.25b over 20 years (in 2007 15km dollar value) to Aileron road house • Exchange rate of AUD$1.00 = USD$0.90 60 km to rail lin
Slide 3: Nolans - Facts Sheet
Nolans - Facts Sheet For personal use only 1. A significant resource of rare earths 2. Exposed at surface – a small, long life, low cost, safe, open pit 3. A specific process flow sheet to separate products streams • Rare earths to separated product (99% grade) • Phosphoric acid • With additional by
Slide 4: Nolans Valuation
Nolans - Valuation For personal use only 1. NPV of AUD $1.1 Billion (post tax) 2. Revenue of AUD $8.25 billion (in 2007 dollars @ USD:AUD 0.90) 3. Operating life of 20 years 4. Revenue from 4 product streams • Rare earths (65%), phosphoric acid (16%), calcium chloride (11%), uranium (8%) 5. Exchange
Slide 5: PFS assumptions
Nolans – PFS assumptions For personal use only 1. Capital costs estimated at AUD$750m • A base of AUD$450m for plant • Includes AUD$120m for contingency – scope change • Includes AUD$180 for first fill chemicals etc • Assumes Australian built & manufactured plant 2. Operating costs estimated at AUD$
Slide 6: Valuation Assumptions
Nolans Valuation Assumptions For personal use only 1. Conservative exchange rate • AUD$1 = USD $0.90 2. Conservative Pricing • Rare earths 20,000 tonnes @ US$ 11,600 / t • Phosphoric acid 150,000 tonnes @ US$ 400 / t • Calcium Chloride 400,000 tonnes @ US$ 100 / t • Uranium Oxide 150 tonnes @ US$ 10
Slide 7: Project Opportunities
Nolans Project Opportunities For personal use only 1. Resources grade • Assumes the average resource grade – conservative • Optimum feed grade analysis in progress 2. Capital costs • Savings expected with components manufactured overseas • Capital requirements under review 3. Operating costs • On-si
Slide 8: Project Opportunities
Nolans Project Opportunities For personal use only 6. Exchange rate • The long term forecast USD : AUD is 0.75 • At AUD$1=USD 0.75 has a +$600m impact = a post tax NPV of $1.7b 7. Pricing PFS Current prices • Rare earths US$ 11,600/t* US$ 13,900/t* • Phosphoric acid US$ 400/t US$ 500 – 600/t • Calci
Slide 9: Development Timeline
Development Timeline For personal use only Development Plans – Nolans 2008 Pilot plant & Detailed engineering design 2009 Approvals process 2010 Construction & Commissioning 2011 Production at 50% rates = 10,000 tpa REO 2012 Production at 75% utilisation = 15,000 tpa REO 2013 Production at 100% util
Slide 10: Exploration
Exploration For personal use only 1. Nolans drilling - purpose • Improved classification of current resources • Define extensions to resource • Identify higher grade zones 2. Kurinelli sols sampling results pending 3. Jervios drilling postponed until 2008 4. Mithril Resources identify high priority