Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Corporate Update (May 2021)
27 slides from Arafura Rare Earths's corporate update, May 18, 2021
Slide 1: ASX Announcement: Project Update Presentation
ASX ANNOUNCEMENT PROJECT UPDATE PRESENTATION 18 May 2021 For personal use only Arafura Resources Limited (ASX:ARU) (“Arafura” or the “Company”) is pleased to attach a copy of its Nolans Project Update presentation. The presentation has been updated to reflect the information contained in the Nolans
Slide 2: Nolans Project Update May 2021
18/05/2021 Nolans Project For personal use only Update May 2021 (ASX:ARU) 1
Slide 3: Disclaimer
18/05/2021 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 wit
Slide 4: Capital Structure
18/05/2021 Capital Structure Corporate ASX Code ARU Snapshot ASX Share Price (17 May) $0.170 For personal use only Shares on Issue 1,171m Market Capitalisation $199.0m 12 Month Liquidity $129.3m Nolans is a shovel-ready world class Nolans aims to supply Cash* $12.9m NdPr project 5-10% of global dema
Slide 5: Investment Highlights
18/05/2021 The Nolan’s Project is a globally significant resource for rare earths with the potential Investment to supply 5-10% of the world’s rare earths magnet supply and a mine life of MBL to do ~38 years1 Highlights For personal use only The Nolans Project has attractive economics which includes
Slide 6: Nolans Project Overview
18/05/2021 Nolans For personal use only Project Overview (ASX:ARU) 5
Slide 7: Close to existing key infrastructure
18/05/2021 Close to existing key infrastructure For personal use only Stuart Highway 10 km east Amadeus natural gas pipeline- adjacent to project site Water supply 25km southwest Tailings and process wastes at site Alice Springs railyard, airport and other services 135km south (ASX:ARU) 6
Slide 8: Attractive Project Economics
18/05/2021 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
Slide 9: Shovel Ready Nolans NdPr
18/05/2021 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 Mining License Granted Federal & NT Major Project Status In
Slide 10: Key Development Milestones
18/05/2021 Key Development Milestones Aligned With NdPr Market Tightening For personal use only Outcome from Advance offtake MMI1 discussions with Potential NdPr First application creditable market production process parties tightening due late 2024 Target Final FEED to Advance senior Investment com
Slide 11: Ore to Oxide at Single Site
18/05/2021 Ore to Oxide at Single Site 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. Nolans aims to be a non-Chinese supplier of choice for sustainably mined NdPr oxide. $ CAPEX & OPEX include ore – oxide proc
Slide 12: ESG - Current activities and initiatives
18/05/2021 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 rare earth products, helping our customers deliver clean and efficient technologies. We are committed to delivering positi
Slide 13: Offtake Strategy and NdPr Sales Targets
18/05/2021 Offtake Strategy and NdPr Sales Targets For personal use only Customer engagement targeted at NdPr users not aligned with Made in China 2025 strategy Offtake engagement advanced with end users seeking supply security with a sustainable NdPr producer NdPr oxide prices have increased and in
Slide 14: Funding Strategy
18/05/2021 Arafura’s Debt Funding Strategy leverages Funding Strategy Nolans as a strategic For personal use only Global Government Initiatives geopolitical asset Creating Momentum ➔ Most countries targeting net-zero emissions Targeting approximately half of the project financing ➔ Europe initiative
Slide 15: Critical Minerals Supply – a Global Issue
18/05/2021 Critical Minerals Supply – a For personal use only Global Issue (ASX:ARU) 14
Slide 16: NdPr Market Opportunity
18/05/2021 NdPr Market Opportunity For personal use only Automotive sector is forecast to consume DEMAND nearly 50% of NdFeB supply Supply gap is growing at a cumulative annual growth rate (CAGR) of 8% 2030 forecast assumes ~34 million EVs 2021 demand is forecast to increase by 14% Market analysts f
Slide 17: NdPr Price Rise
18/05/2021 NdPr Price NdPr Oxide Output & Price EXW China Rise For personal use only Chinese inventory stockpiles down by ~60% since mid-2020 Chinese producers near full capacity Source: Lynas Rare Earth (LYC output), BAIINFO (NdPr oxide production), Asian Metals (NdPr Price) Supply chain issues hig
Slide 18: Supply expansion challenge
18/05/2021 Supply expansion challenge Tighter environmental and regulatory controls For personal use only 1 in China have resulted in production volumes contracting China Northern Rare Earths (largest producer) Source: Baiinfo and Argus 2 will increase production but will require plant expansion to
Slide 19: Non-China Value Chain Map
18/05/2021 Non-China Value Chain Map Non-China Value Chain China Value Chain For personal use only - Mine - RE Separation - NdFeB Alloy/ - End User/ - NdPr Metal - RE Extraction - NdPr Oxide Magnet Maker Manufacturer NdPr procurement will be central to China’s 2025 EV and renewable Export of China R
Slide 20: Concluding Remarks
18/05/2021 Concluding Remarks For personal use only $ Long life asset Extensive & Definitive Only single site Low-cost Production of enriched in successful Feasibility Australian NdPr operation NdPr oxide NdPr large-scale pilot Study focused project aligned with completed completed, with all Governm
Slide 21: Appendices
18/05/2021 Appendices For personal use only (ASX:ARU) 20
Slide 22: Long Life Asset
18/05/2021 Long Life Asset NdPr rich & open at depth RESOURCES TONNES (m) RARE EARTHS TREO % PHOSPHATE P2O5 % NdPr ENRICHMENT % 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. Num
Slide 23: Rehabilitation & Environmental Approval
18/05/2021 Rehabilitation & Environmental Approval and Project Costing includes all costs for Waste Management System and Rehabilitation. Waste Management For personal use only Waste rock dumps designed to “encapsulate” naturally occurring radioactive materials (NORM) rock at mine site Mine area sur
Slide 24: ESG/Sustainability Program Plan
18/05/2021 ESG/Sustainability Program Plan For personal use only Ambition Prioritisation Action Arafura Sustainability Goal 1. Mapped the Arafura Membership application to UN stakeholder mix Global Compact submitted “Our goal is to be a trusted global leader and supplier of choice for 2. Materiality
Slide 25: Technology Program Complete
18/05/2021 Technology Program Complete For personal use only Flowsheet Pilot PHASE PHASE PHASE PHASE PHASE PHASE 1 2 3 4 5+6 + 7 BENEFICATION PHOSPHATE BULK ACID RARE EARTH RARE EARTH EXTRACTION PRE-LEACH BAKE PROCESSING SEPARATION 5,000kg high- Merchant grade 2,000kg pre-leach 4,100kg rare earth >9
Slide 26: Nolans Supply Chain Model
TRACEABLE 18/05/2021 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 m
Slide 27: Contact Information
18/05/2021 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) 26