Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — Investor Presentation (January 2009)
33 slides from Lynas Rare Earths's investor presentation, January 2009
Slide 1: Investor Presentation January 2009
Investor Presentation January 2009
Slide 2: Disclaimer
Disclaimer ► The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrictions. ►
Slide 3: Lynas is a company with a clear vision within the Rare Earths industry
Lynas is a company with a clear vision within the Rare Earths industry Vision Be a global leader in Rare Earths for a sustainable future Values Excellence in safety, health and the environment Learn from our differences and be open to change Operate in an honest, candid and transparent manner
Slide 4: Lynas is an ASX 200 company with strong institutional support
Lynas is an ASX 200 company with strong institutional support Listed on the Australian Stock Exchange (LYC) 654 million shares on issue 41 million unlisted options with strike prices between A$0.17 to A$1.27 US$97.3 million unlisted convertible bonds due Jan 2013 Major institutional support
Slide 5: Rare Earths underpin new materials technology required to sustain the needs of today's society
Rare Earths underpin new materials technology required to sustain the needs of today’s society Improve Energy Efficiency Environmental Protection Enable Digital Technology through lower consumption through emission control smaller & more powerful Compact fluorescent lights Auto catalytic convert
Slide 6: Rare Earths improve fuel consumption and emission control in the automotive industry
Rare Earths improve fuel consumption and emission control in the automotive industry Weight reduction through new magnets Electric motor with Neo magnets is half the weight of traditional ferrite motor Electric seats, windows and mirrors Sunroof and tail gate Windscreen wipers and washer jets
Slide 7: Hybrid technology is totally dependent upon Rare Earths
Hybrid technology is totally dependent upon Rare Earths HYBRID electric motor and generator HYBRID NiMH battery Neodymium Lanthanum Praseodymium Neodymium Dysprosium Cerium Terbium Enabling better emission standards and lower energy consumption -6-
Slide 8: Rare Earths play a pivotal role in automotive catalytic converters and clean diesel
Rare Earths play a pivotal role in automotive catalytic converters and clean diesel AUTOCATS IN EVERY CAR CLEAN DIESEL TECHNOLOGY Autocats convert harmful gases to inert Rare Earths compound added to diesel gases fuel in the car Rare Earths enable Diesel soot trapped in filter Improved performance
Slide 9: Rare Earths are vital for further important energy efficiency applications
Rare Earths are vital for further important energy efficiency applications Energy efficient light bulb – Lanthanum is used to increase oil legislation driving demand refinery yields by 7% (FCC) Europium, Terbium and Yttrium 7% is equivalent to the demand predicted to double US oil production -8-
Slide 10: The consumer electronics industry use Rare Earths in many applications
The consumer electronics industry use Rare Earths in many applications HIGH POWER NEO MAGNETS PHOSPHORS Disk drives RED GREEN BLUE Computers Data storage TV and computer screens Ipods CRT Video recorders Plasma Gaming consoles LCD Video cameras Speakers POLISHING POWDERS GLASS ADDI
Slide 11: Demand for Rare Earths is evenly spread by application and most are growing strongly
Demand for Rare Earths is evenly spread by application and most are growing strongly 2006 Demand by Application Growth Forecast by Application Application Growth rate 2012 demand % p.a. tonnes Other, 7% Glass Additive, Ceramics, 5% 12% • Glass Additives 1% 14,000 Phosphors, 8% • Catalysts 7% 32,000
Slide 12: The sustainability of Rare Earths supply is becoming more fragile
The sustainability of Rare Earths supply is becoming more fragile Chinese Government Policy Chinese Production Limits Strategic value of REO well understood Largest REO mine Baotou (50% of world supply) operating at capacity Mining quota of 77,500t (2% vs 2006) REO is a by-product of iron mining
Slide 13: The resultant structural deficit will be filled in part by Lynas
The resultant structural deficit will be filled in part by Lynas Price Development Supply – Demand Imbalance (US$/kg) (REO Metric Tonnes) 2006 2012 Based on Mt Weld Composition, FOB China basis Total Demand 108,000 188,000 15.00 175000 14.00 US$10.34/kg Supply Rare Earths Price Chart 13.00 Jan 09 15
Slide 14: Lynas is on track to build a sustainable, transparent, fully integrated source of supply
Lynas is on track to build a sustainable, transparent, fully integrated source of supply Mining - Australia Open pit mining at Mt Weld Contractor mining on a campaign basis Rare Earths Concentration - Australia Concentrator using flotation under construction at Mt Weld Containers to ship con
Slide 15: The current mining operation is within the Central Zone Pit which has 648,000t REO
The current mining operation is within the Central Zone Pit which has 648,000t REO Mt Weld Tenements The Total CLD Sector Mineral Resource (2.5% REO cut-off) Updated in March 2008 Category Tonnes Grade Tonnes (Mt) (%REO) (kt) REO Measured 2.21 14.7 324 Indicated 3.84 11.5 441 Inferred 6.19 6.8 418 T
Slide 16: Mt Weld's Central Zone Pit has a natural advantage in grade and composition
Mt Weld’s Central Zone Pit has a natural advantage in grade and composition Mt Weld US$/kg Baotou Composition Rare Earth Elements Composition 15 Dec 2008 By Weight By Weight Lanthanum Oxide 25.60% 8.00 25.70% Cerium Oxide 45.74% 4.30 51.30% Praseodymium Oxide 5.42% 14.50 5.40% Neodymium Oxide 18.62%
Slide 17: Classification of Mineral Resources for the Southern Zone within the CLD Sector
Classification of Mineral Resources for the Southern Zone within the CLD Sector Average REO Distribution of Mineral The Southern Zone Mineral Resource Resources (%) (2.5% REO cut-off) Category Tonnes Grade Tonnes Central Southern Rare Earth Oxide (Mt) (%REO) (kt) REO Zone Zone Measured 0.13 3.8 5 La
Slide 18: First Mt Weld Rare Earths mining campaign completed
First Mt Weld Rare Earths mining campaign completed Loss time injury free Ahead of schedule On budget -17-
Slide 19: 773,000 tonnes of ore stockpiled on site
773,000 tonnes of ore stockpiled on site -18-
Slide 20: The Concentration Plant being built at Mt Weld
The Concentration Plant being built at Mt Weld ► Process Engineering Design over 95% complete ► Mintrex appointed as Superintendent ► Site clearance completed ► Bulk earthworks are well underway ► Abesque Engineering have mobilised to site for the construction of the Concentration Plant ► Procuremen
Slide 21: Mount Weld Concentration Plant site – Ball Mill foundations
Mount Weld Concentration Plant site – Ball Mill foundations -20-
Slide 22: Mount Weld Concentration Plant site – Flotation Building foundations
Mount Weld Concentration Plant site – Flotation Building foundations -21-
Slide 23: Containers of concentrate shall be trucked to port for shipment to Malaysia
Containers of concentrate shall be trucked to port for shipment to Malaysia ► Transportation of containers to Malaysia via Fremantle -22-
Slide 24: State of Pahang on the east coast of Malaysia is an excellent location for processing
State of Pahang on the east coast of Malaysia is an excellent location for processing ► Strong Federal, State, and Local Government support Lynas granted “strategic pioneer status” with 12 year tax free period Gebeng Industrial ► Excellent infrastructure in Gebeng Area Close to Kuantan Port with
Slide 25: The Advanced Materials Plant Malaysian site is 100 hectares
The Advanced Materials Plant Malaysian site is 100 hectares -24-
Slide 26: Malaysia site construction: Piling for post treatment workshop
Malaysia site construction: Piling for post treatment workshop -25-
Slide 27: Lynas-constructed stormwater detention pond
Lynas-constructed stormwater detention pond -26-
Slide 28: Lynas is establishing a sustainable platform for long term operations
Lynas is establishing a sustainable platform for long term operations ► Comprehensive Safety, Health, Environment and Community policies and processes in place ► Multi-million dollar investment, approximately US$35m, in waste gas, waste water and waste solid treatment plant and equipment ► Developin
Slide 29: Rare Earths project schedule – 1st Phase 10,500tpa
Rare Earths project schedule – 1st Phase 10,500tpa 2007 2008 2009 STAGE OF DEVELOPMENT Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Grade control drilling Mining Campaign Engineering Design Purchase Order and Equipment Delivery Civil Works Equipment Installation Commissioning - Concentrator Commissioning - M
Slide 30: Key supply contracts have been signed
Key supply contracts have been signed 5th Customer Agreement 1st Customer Agreement – Letter of Intent - Supply Contract • US$80M • US$90M • Long term multiple year • Long term 5 year contract contract • Cerium, Europium, • Product from Phase I & Terbium Phase & Lanthanum II of final separation and
Slide 31: Lynas – building a stable supply chain for vital raw materials to a sustainable world
Lynas – building a stable supply chain for vital raw materials to a sustainable world Applications Raw Material Supply Lynas The growth drivers are : China dominates the Foundation on the 1. More efficient use of market with 95% supply richest Rare Earths ore energy body in the world 2. Reduction of
Slide 32: The Crown Polymetallic resource at Mt Weld is a world scale niobium resource
The Crown Polymetallic resource at Mt Weld is a world scale niobium resource Category Indicated Inferred Total Mt 1.5 36.2 37.7 Crown Ta2O5 0.037% 0.024% 0.024% Polymetallic Nb2O5 1.4% 1.06% 1.07% Resource TLnO 1.65% 1.14% 1.16% ZrO 0.32% 0.3% 0.3% FeO3 46.5% 42.6% 42.8% P2O5 8.9% 7.96% 7.99% Y2O3 0
Slide 33: Notes:
Notes: The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Rob Duncan and Brendan Shand, who are members of The Australasian Institute of Mining and Metallurgy. Both Rob Duncan and Brendan Shand are employees of Ly
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