Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Petra Capital Investor Forum (October 2021)
27 slides from Arafura Rare Earths's conference presentation, Oct 5, 2021
Slide 1: Petra Investor Forum Presentation
ASX ANNOUNCEMENT PETRA INVESTOR FORUM PRESENTATION 5 October 2021 For personal use only Arafura Resources Limited (ASX:ARU) (“Arafura” or the “Company”) is pleased to attach a copy of its presentation delivered at an investor forum hosted by Petra Capital via video conference. Mr Gavin Locker, Manag
Slide 2: Nolans Project Investor Update
5/10/2021 Nolans Project For personal use only Investor Update 5 October 2021 (ASX:ARU) 1
Slide 3: Disclaimer
5/10/2021 Disclaimer 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
Slide 4: Capital Structure
5/10/2021 Capital Structure Corporate ASX Code ARU Snapshot ASX Share Price (1 October 2021) $0.215 For personal use only Shares on Issue 1,550m NdPr is central to Market Capitalisation $333.2m many clean energy 12 Month Liquidity $211.2m applications including EVs and wind Cash* $10.79m turbines De
Slide 5: Nolans Project Key Info
5/10/2021 Nolans Project For personal use only Key Info (ASX:ARU) 4
Slide 6: Advanced Manufacturing in Australia
Advanced Manufacturing in 5/10/2021 Australia For personal use only Nolans is the only NdPr focused project in Australia that plans to mine and process ore to oxide at a single site. Supplier of choice for sustainably mined NdPr oxide. All environmental approvals have been secured and waste manageme
Slide 7: Nolans NdPr Shovel Ready
5/10/2021 Regulatory Nolans Federal & NT Environmental Approvals secured NdPr Government and Minister support for senior debt facility For personal use only Shovel Security of Tenure & Social License to Operate Native Title Agreement Ready Mineral License Granted Federal Major Project Status Indigen
Slide 8: Progress Towards Construction
5/10/2021 Indigenous Cultural Awareness Training Progress Towards Construction completed by staff and owner’s team For personal use only Hydrometallurgical Non-Process Infrastructure Arafura’s Owners’ team Plant FEED Commenced FEED early works including personnel from KBR August progressing and Wave
Slide 9: Nolans Key Development Milestones
5/10/2021 Nolans Key Development Milestones For personal use only *Milestone targets are indicative and subject to change and are contingent upon funding, offtake activities and general market conditions 1. FID and First Production are both subject to outcomes with offtake and financing. 2. Conditio
Slide 10: Global Market Info
5/10/2021 Global Market For personal use only Info (ASX:ARU) 9
Slide 11: A Vital Cog in the Electric Vehicle Revolution
5/10/2021 Total mineral demand from new EV A Vital Cog in the Electric Vehicle kt sales by scenario Revolution 14000 For personal use only 2020 12000 Stated Policies Scenario EV market growth is exponential: 10 to 10000 Sustainable Development Scenario 40 times in the next 20 years 8000 This will re
Slide 12: A lesson in the auto-semiconductor shortage
5/10/2021 A lesson in the auto- The automotive semiconductor shortage has semiconductor shortage caused billions of dollars in lost revenue for For personal use only the Auto industry Urgency for NdPr supply security Like the semiconductors, high performance NdFeB magnets are a small but vital part
Slide 13: NdPr Market Opportunity
5/10/2021 NdPr Market Opportunity For personal use only SUPPLY Market analysts forecast a supply gap that represents 109% of global supply today and is in excess of 11 Nolans Projects The emerging supply gap has extra significance for companies not aligned with the China 2025 strategy DEMAND Automot
Slide 14: NdPr Oxide Output & Price EXW China
5/10/2021 NdPr Oxide Output & Price EXW China NdPr Price Rise For personal use only Chinese inventory stockpiles down by ~60% since mid-2020 Chinese producers near full capacity Supply chain issues highlighted by Source: Lynas Rare Earth (LYC output), BAIINFO (NdPr oxide production), Asian Metals (N
Slide 15: Offtake & Funding
5/10/2021 Offtake & For personal use only Funding (ASX:ARU) 14
Slide 16: Offtake Strategy
5/10/2021 Offtake Strategy Arafura is in discussions with 10 parties for >260% of Planned Production1 with a view to secure 85% as binding offtake For personal use only Targeting NdPr users not aligned with Made in China 2025 strategy Progressing Offtake agreements with customers seeking supply secu
Slide 17: Nolans Supply Chain Model
TRACEABLE 5/10/2021 Nolans Supply BLOCKCHAIN NETWORK Chain Model Mine RE Extraction For personal use only RE Separation Sustainable producer of NdPr to align (Australia) Toll Processing to “green procurement” strategy Contract NdPr Oxide Offtake Model proposes ‘Toll Processing’ of Metal Converter me
Slide 18: ESG - Current activities and initiatives
5/10/2021 ESG - Current activities and initiatives For personal use only “Arafura’s ESG commitment is to be a trusted global leader and supplier of choice for sustainably mined and processed rare earth products, helping our customers deliver clean and efficient technologies. We are committed to deli
Slide 19: Nolans - Part of Australia's Critical Minerals Sector
5/10/2021 Nolans - Part of Australia's Critical Minerals Sector & Global New Energy Economy For personal use only ➔ Australian Government leveraging critical mineral Critical minerals are strategic for reserves to provide Australia with a place in the governments and will enable value chain for proc
Slide 20: Funding Strategy
5/10/2021 Funding Strategy Leverages Global Most countries targeting low carbon transport and renewable energy to achieve net-zero emissions For personal use only Focus On Critical Material Supply Europe, Japan, Korea and US recognise the need for Chains diversified and robust critical material valu
Slide 21: Targeted Funding Structure
5/10/2021 Targeted Funding Offtakers Structure For personal use only ECA Loans/ ECA debt and Guarantees Nolans Project guarantees will be critical but not the NAIF entire funding solution Commercial Debt EFA & Other Equity Instruments Portfolio of funding sources Strategic Equity- Value Chain Offtak
Slide 22: Contact Information
5/10/2021 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) 21
Slide 23: Experienced Board
5/10/2021 Experienced Board For personal use only Mark Southey Chris Tonkin Quansheng Zhang Cathy Moises Gavin Lockyer NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR MANAGING DIRECTOR Mark Southey has previously held Chris Tonkin has over 35 years’ Quansh
Slide 24: Experienced Management
5/10/2021 Experienced Management For personal use only Peter Sherrington Lloyd Kaiser Brian Fowler Stewart Watkins CHIEF FINANCIAL OFFICER & GENERAL MANAGER GENERAL MANAGER GENERAL MANAGER COMPANY SECRETARY SALES & MARKETING NT & SUSTAINABILITY PROJECTS Peter commenced employment with Lloyd has more
Slide 25: Attractive Project Economics
5/10/2021 Attractive Project Economics Definitive Feasibility Study Mining and Production (DFS) update released in For personal use only Mine Life (years) 38 NdPr Oxide (tpa) 4,440 May 2021 SEG/HRE Oxide (tpa) 474 Phosphoric Acid (tpa 54% P2O5 MGA) 144,393 Post-tax NPV8 of A$1.4 billion and IRR of 1
Slide 26: Long Life Asset
5/10/2021 Long Life Asset RESOURCES TONNES (m) RARE EARTHS TREO % PHOSPHATE P2O5 % NdPr ENRICHMENT % NdPr rich & open at depth For personal use only 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. Numb
Slide 27: Local Processing: More Jobs, Secure Supply Chains
5/10/2021 Local Processing: More Jobs, Secure Supply Chains For personal use only 1. Mine 3. RE Separation 5. NdPr Metal 6. NdFeB Alloy/ 7. End User/ 2. RE Extraction 4. NdPr Oxide (Conversion) Magnet Maker Manufacturer Non-China Value Chain China Value IMPORT & IMPORT Chain IMPORT TOLL PROCESS Impo
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