Alkane Resources Ltd · ASX:ALK
Alkane Resources — Ruidow Global Zircon Conference 2015
19 slides from Alkane Resources's conference presentation, May 26, 2015
Slide 1: Critical Metals for Sustainable Economies
Critical Metals for Sustainable Economies Alister MacDonald- Marketing Consultant, Alkane Resources Ltd Ruidow Global Zircon Conference in Xi’an China May 26-28, 2015
Slide 2: Rare Earths-Rare Metals
Rare Earths-Rare Metals © 2015 Alkane Resources 2
Slide 3: These products are everywhere..
TA) These products are everywhere.. ALKANE Renewable energy Energy efficient lighting Auto-emissions Auto -— fuel efficiency Electronics Smart technologies Aerospace
Slide 4: Europe's Critical Metals Matrix
Europe’s Critical Metals Matrix May 2014 Heavy Rare Earth Elements Light Rare Earth Elements Niobium Hafnium Source: European Commission © 2015 Alkane Resources Source: Japan Oil, Gas and Metals, National Corporation (JOGMEC) September4 2014
Slide 5: USA Critical Metals Matrix
USA Critical Metals Matrix December 2011 Short term (Present - 2015) criticality matrix Medium term (2015 - 2025) criticality matrix Source: US Department of Energy © 2015 Alkane Resources Source: Japan Oil, Gas and Metals, National Corporation (JOGMEC) September5 2014
Slide 6: Japan's Critical Metals Matrix
Japan’s Critical Metals Matrix September 2014 Re-evaluation of HREE Criticality Matrix Nb LREE • Refer to EU’s model • Adjusts for Japanese Industries Zr • Still needs to be reconciled Hf © 2015 Alkane Resources Source: Japan Oil, Gas and Metals, National Corporation (JOGMEC) September6 2014
Slide 7: Factors that determine if a metal is strategic or critical
Critical or Strategic Supply Risk Supply risk Economic Available Time Frame • Resources - who, Importance Substitutes • Short term? what, where, • Clean energy • Price versus • Medium Term? when, & how? performance? • Fuel • Long term? • One country or efficiency • Economic company recovery or • By-
Slide 8: Where do they come from
Where do they come from Aa Material Produced DZP World Market Zirconium materials (Zr02) 16,000tpa 175,000tpa Rare earth oxides 6,000tpa 175,000tpa Ferroniobium (FeNb) 3,000tpa 90,000tpa
Slide 9: Metal & Specialty Ceramics Markets
Metal & Specialty Ceramics Markets Zircon Hafnium 1,100,00 TPA (2015) 75 TPA (2015) $1.2B USD Materials $75m USD Zirconium Niobium 180,00 TPA (2015) 60,00 TPA (2015) $1.0B USD $2.4B USD Rare earths 115,00 TPA (2015) $4.0B USD Niche markets compared to bulk commodities such as alumina and iron ore ©
Slide 10: Rare Earth Industry
Rare Earth Industry REE Demand 2016 by Application • US$3-5B Global market Other Catalysts • 136,000t Annual Consumption 2014 8% 18% • 5-10% Annual growth estimates Ceramics 5% REE Demand 2014 by Country Glass 6% Phosphors Other 5% US 5% 13.5% Japan 13.5% China Polishing 68% 12% Magnets 27% Metal Al
Slide 11: Zirconium Industry
Zirconium Industry Zircon Demand by End Use (2014 ~ 1.1 million tonnes) Other 3% Foundry 12% Ceramics 47% Chemicals 21% Refractory 17% • Global market US$2-3B • 2014 consumer zircon inventories running down 90+% of Critical • Market expected to stabilise through 2015 - 2016 Zirconium Chemicals • CAG
Slide 12: China's Zirconium industry
China’s Zirconium industry © 2015 Alkane Resources 12
Slide 13: Zirconium Industry Challenges
Zirconium Industry Challenges Zirconium chemicals Fused zirconia • Dealing with U+Th waste residues • Will <500 ppm U+Th be required for ZOC production for fused zirconia? • ZOC production of 270,000 tpa • Yes, if exported to USA or Japan requires 167,000 t zircon • China and exports elsewhere? • Co
Slide 14: Comparison of Chinese Rare Earths vs. Zirconium Industries
Comparison of Chinese Rare Earths vs. Zirconium Industries Rare Earths Zirconium Industry Government led consolidation Low Government control Market share 90% world market share of separated 75% world market share, 90% zirconium rare earths and smelted metals chemicals, 50% fused zirconia Ownership
Slide 15: Niobium Industry
Niobium Industry 90% of Nb used in standard grade ferroniobium for the production of high strength low alloy (HSLA) steels. World production estimated at 80,000t Nb in 2012. CBMM in Brazil accounts for 85%. Global market US$3-4B. Price stability since 2008, including GFC. CAGR anticipated at 10%. De
Slide 16: Hafnium Industry
Hafnium Industry Super Alloys- 73% of 2015 supply By-product from zirconium metal • Depends on nuclear industry Duopoly supply for Super Alloys © 2015 Alkane Resources Source: Modified after Lipmann Walton & Co Ltd 2015 16
Slide 17: DZP Discovery and Development
DZP Discovery and Development Recognition Exploration Resource Process • 1960’s • Drill holes 1990 • 1999-2002 Development • Initial drilling • Preliminary • Mini pilot plant • Metallurgy 2006 1983 for Cu-Au metallurgical - present work • Feasibility study Demonstration EIS Offtake Next steps… Pilot
Slide 18: DZP Product Output
DZP Product Output 4,665 TPA Light rare earth chemical concentrate 99% REO (LREO units) 1,309 TPA Heavy rare earth chemical concentrate 95% REO (HREO units) Product Output 15,827 TPA Zirconium as ZBC (carbonate) & Zirconia 99% ZrO2 (ZrO2 units) Assumed 50% 200 TPA Hafnium as HfO2 (process being tria
Slide 19: Disclaimer
Disclaimer This presentation contains certain forward looking statements and forecasts, including possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, industry growth or other trend projections. Such s
Alkane Resources — Ruidow Global Zircon Conference 2015 on 6ix