Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — November 2017 International Rare Earths Conference - Hong Kong
23 slides from Arafura Rare Earths's conference presentation, Nov 9, 2017
Slide 1: Evolution of a non-China NdPr Producer
For personal use only Arafura Resources Limited Evolution of a non-China NdPr Producer November 2017 International Rare Earths Conference- Hong Kong
Slide 2: Disclaimer
Disclaimer 2 For personal use only Important Notice This presentation has been prepared by Arafura Resources Limited (Arafura Resources). It is of a summary form only and therefore contains general background information which may not be complete. It should be read in conjunction with and full revie
Slide 3: Programme
Programme 3 For personal use only 1. Investment Highlights & Project History 2. NdPr Market 3. Nolans Project 4. Project Timeline 5. Project Funding 6. Summary Arafura Resources Limited (ASX:ARU) November 2017
Slide 4: Investment Highlights & Capital Structure
Investment Highlights & Capital Structure 4 For personal use only • ASX listed company developing the Nolans Rare Earths Project in the Northern Territory, low geopolitical risk, 30+ year mining and chemical processing operation ASX Code ARU • Nolans is one of the largest and richest deposits of Neo
Slide 5: Project History
Project History 5 For personal use only Nolans Project Expenditure Exploration A$20m Evaluation & A$125m Technology 2018 Total A$145m • Feasibility 2017 Study •Beneficiation pilot 2016 • Final •Phosphate •Process & extraction pilot Investment configuration •Bulk pre-leach Decision 2015 Phosphoric Ac
Slide 6: The NdPr Market
For personal use only 6 The NdPr Market Arafura Resources Limited (ASX:ARU) November 2017
Slide 7: Overview: Secure Supplier of NdPr to Permanent Magnets
Overview 7 For personal use only Secure Supplier of NdPr to Permanent Magnets Used in Clean Energy • NdPr is a key component in the manufacture of high-strength NdFeB permanent magnets used in electric vehicles (EVs), wind turbines, portable electronic devices, and many industrial applications • EVs
Slide 8: NdPr Price – Supply & Environmental Reform
NdPr Price – Supply & Environmental Reform 8 For personal use only • Enforced closure of illegal and unsustainable mines and NdPr Oxide Pricing 2015-2017 NdPr Oxide smelting $85.0 $80.0 • China “big 6” consolidation creates a more sophisticated $75.0 supply chain $70.0 • Improved chain of custody $6
Slide 9: Emerging Demand Dynamic
Emerging Demand Dynamic 9 For personal use only • Steady increases in global magnet production 2014 to 2016, NdPr price movement indicates continued growth for 2017, production growth dominated by China • To maintain magnet production growth China will require increased volumes of NdPr raw materials
Slide 10: Demand Growth - China a net importer?
Demand Growth- China a net importer? 10 For personal use only 250,000 Magnet Demand China and ROW • China 2025 Strategy- integration and movement along the supply chain • China pursuing global leadership in EV 200,000 manufacture, as a priority • Commercial Activity and expansion of non- China 150,0
Slide 11: The Nolans Project
For personal use only 11 The Nolans Project Arafura Resources Limited (ASX:ARU) November 2017
Slide 12: Project Configuration
Project Configuration 12 For personal use only Arafura Resources Limited (ASX:ARU) November 2017
Slide 13: Close To Key Infrastructure
Close To Key Infrastructure 13 For personal use only • Stuart Hwy – 10 km east • Alice Springs railyard, airport and other services – 135 km south • Amadeus gas pipeline – adjacent to processing site • Water supply – 30 km south • Tailings and process wastes remain at site Arafura Resources Limited
Slide 14: Project Metrics
Project Metrics 14 For personal use only • Ultra competitive operating costs US$6.23/kg TREO or US$24.38/kg NdPr oxide – lowest amongst peers • Phosphoric acid recovered to reduce commodity risk • Flowsheet targets high NdPr Refer Arafura ASX release 7 June 2017 for additional and qualifying informa
Slide 15: Pilot Scale Work Completed In 2017
Pilot Scale Work Completed In 2017 15 For personal use only Beneficiation Pilot Plant Phosphoric Acid Regeneration Circuit Bulk Pre-Leach Pilot Plant TREO Grade 7.0% TREO Recovery >80% NdPr Oxide Grade 1.8% NdPr Oxide Recovery >82% P2O5 Grade 29% P2O5 Recovery >90% Al2O3 Grade <3.2% Fe2O3 Grade <1.9
Slide 16: Remaining Piloting Activities 2017-18
Remaining Piloting Activities 2017-18 16 For personal use only Acid Bake Phase 4 commenced Phase 5,6,7 planning RE Purification and Precipitation pilot Phase 5 RE Dissolution and Crystallization pilot Phase 6 PLR and Acid Mixing Baked Mixture Feeding Acid Bake RE Separation pilot Phase 7 Cooled Sulp
Slide 17: Piloting & Final Feasibility
Piloting & Final Feasibility 17 For personal use only 2018 Targets • Finalisation of piloting • Environmental Approvals • Advance offtake arrangements • Completion of definition stage engineering and DFS • Engage with strategic partners for capital equipment & project funding Arafura Resources Limit
Slide 18: NdPr Project Funding
NdPr Project Funding 18 For personal use only • NdPr production requires downstream chemical processing, significant supporting infrastructure and compliant waste management • New NdPr project capital intensity range- US$30 -50M per kt REO. Drivers include; location, scale, OPEX, RE product produced
Slide 19: Nolans Funding Strategy
Nolans Funding Strategy 19 For personal use only • Export Credit Agencies (ECA) will be key to providing government backed funding and guarantees, leveraged against the strategic link of NdFeB magnet production • ECA funding linked to offtake arrangements, capital equipment supply and construction •
Slide 20: Summary
Summary 20 For personal use only Attribute Arafura High growth and high value NdPr magnet focus ✓ NdPr production planned to coincide with projected supply gap ✓ Located in a jurisdiction with low geopolitical risk and with strategic support ✓ Long-life, low-risk resource with planned output that su
Slide 21: Contact
For personal use only Contact: Level 3, 263 Adelaide Terrace Perth, WA, 6000, Australia T: +61 8 6210 7666 E: arafura@arultd.com November 2017 Corporate Presentation
Slide 22: Appendix A: Mineral Resources
Appendix A: Mineral Resources 22 For personal use only RESOURCES TONNES M RARE EARTHS TREO % PHOSPHATE P2O5 % NdPr Enrichment % 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 1% TREO cut-off grade. Numbers may not compute exactly due to rounding. “NdPr
Slide 23: Appendix B: Environmental Assessment In Progress
Appendix B: Environmental Assessment In Progress 23 For personal use only Draft EIS submitted May 2016 EIS Supplement submitted February 2017 Remaining steps in Northern Territory Environmental Impact Assessment process Public and government review May-August 2016 No major risks identified 609 comme
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