Northern Minerals Limited · ASX:NTU
Northern Minerals — Argus Specialty Metals Week April 2018
52 slides from Northern Minerals's conference presentation, Apr 18, 2018
Slide 1: Delivering critical technology metals to the EV evolution
Delivering critical technology metals to the For personal use only EV evolution On track for mid-year project completion February 2018 ASX:NTU ARGUS SPECIALTY METALS WEEK APRIL 2018
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Northern Minerals Limited (“Northern Minerals” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to thos
Slide 3: Rare Earths 2.0 – Strategically and Politically Critical
Rare Earths 2.0 – Strategically and Politically Critical 1992 2011 2018 For personal use only “Saudi Arabia has oil, but China cuts rare earths exports “This executive order will prioritize reducing the nation’s vulnerability to China has rare earths” on South China Sea issues, disruptions in our su
Slide 4: Rare Earths 2.0 - EVs not just a lithium story!
Rare Earths 2.0 - EVs not just a lithium story! Li Lithium Al Aluminium For personal use only Co Cobalt Mg Magnesium Copper Cu C Graphite Ni Nickel Dysprosium Dy Fe Mn Mo V Neodymium Nd 4
Slide 5: Rare earth distribution and oxide composition
Northern Minerals Lynas Browns Range Mt Weld For personal use only Rare earth distribution 1 Rare earth oxide composition 2 1 Based on Wolverine Mineral Resource 2 Source: Lynas Corporation website 5
Slide 6: Our Strategy – Building waves of momentum
Our Strategy – Building waves of momentum Stage 4 For personal use only DOWNSTREAM Stage 3 • 10% of full scale capacity BUILD FULL SCALE • Production – July 2018 • Develop, mining, processing & offtake experience • 573tpa contained TREO • 72ktpa capacity beneficiation plant • 3,840tpa capacity Stage
Slide 7: Test: Three year pilot plant project
Stage 1: Test For personal use only Three year pilot plant project 10% of full scale capacity Production – from July 2018 Develop, mining, processing & offtake experience 573tpa contained TREO 72ktpa capacity beneficiation plant 3,840tpa capacity hydrometallurgical plant 7
Slide 8: Pilot Plant Site May 2017
Stage 1: Test For personal use only Three year pilot plant project Pilot Plant Site May 2017
Slide 9: Pilot Plant Site June 2017
Stage 1: Test For personal use only Three year pilot plant project June 2017
Slide 10: Pilot Plant Site September 2017
Stage 1: Test For personal use only Three year pilot plant project September 2017
Slide 11: Pilot Plant Site December 2017
Stage 1: Test For personal use only Three year pilot plant project December 2017
Slide 12: For personal use only
In 2017, Northern Minerals completed stacking of raw product ready for processing For personal use only In 2018, we will commence a new supply of heavy rare earths to the global market
Slide 13: Pilot Plant Flowsheet – Processing Plant
Stage 1: Test For personal use only Pilot Plant Flowsheet Processing Plant Schedule Financing Sales Agreement Community Components and equipment unloaded in Darwin Project Component: Contractor: Modular processing plant Sinosteel MECC Annual Production: Capital Cost: 60,000tpa (based on 10 A$39 mill
Slide 14: Crusher, Mill Feed and Magnetic Separation
Stage 1: Test For personal use only Crusher, Mill Feed and Magnetic Separation
Slide 15: Mill and Flotation Circuit
Stage 1: Test For personal use only Mill and Flotation Circuit
Slide 16: Hydromet Plant – Drier, Kiln and WGS
Stage 1: Test For personal use only Hydromet Plant – Drier, Kiln and WGS
Slide 17: Hydromet Plant – Water Leach, CCD, Purification
Stage 1: Test For personal use only Hydromet Plant – Water Leach, CCD, Purification
Slide 18: Hydromet Plant – RE Carbonate
Stage 1: Test For personal use only Hydromet Plant – RE Carbonate
Slide 19: Project Development Schedule
Stage 1: Test For personal use only Project Development Schedule Apr ‘17 Jun ‘17 Sep ‘17 Dec ‘17 Mar ‘18 Jun ‘18 Final Processing Plant Investment Decision Schedule Mining completed, ore stockpiled Financing Fabrication 99% Plant modules complete in China transported to Australia Sales Agreement Tes
Slide 20: Financing
Stage 1: Test Financing $10 million Sales Agreement For personal use only Prepayment** $24.5 million R&D Financing Facility - Available $11 million Processing Plant Sinosteel Deferred $3 million Lind Financing Payment* Facility*** - available Schedule Financing $11 million Lind Financing $13.5 milli
Slide 21: Secure Sales Agreement
Stage 1: Test Secure Sales Agreement 100% of Browns Range Pilot Plant production to be purchased by For personal use only Lianyugang Zeyu New Materials Direct shipping Sales Co Ltd (JFMAG), a 51% route from Wyndham or owned subsidiary of Guangdong Darwin to Processing Plant Rare Earths Group. Lianyu
Slide 22: Training-to-Work Facility
Stage 1: Test For personal use only Training-to-Work Facility Processing Plant Schedule Financing Sales Agreement Community • Northern Minerals has partnered with The Wunan Foundation for the establishment of an $8.1 million indigenous training-to-work facility at Browns Range. • The Federal Governm
Slide 23: Refine the project
Stage 2: Refine For personal use only Refine the project Reduce mining cost - modify mining method Boost production – increase head grade Develop premium product – yttrium rejection Funding plan for progressing initiatives 23
Slide 24: Enhancement projects underway
Stage 2: Refine For personal use only Enhancement projects underway 205,000t ore mined at Wolverine and Gambit West; Steeper walls employed, resulting in more ore and less waste; Funding secured to investigate this and other project enhancement initiatives for potential larger scale project. Opportu
Slide 25: Full scale operation
Stage 3: Full Scale For personal use only Full scale operation 300,000kg1 Dysprosium production per annum 3,000,000kg1 TREO per annum Significant dysprosium supplier Initial 111 year life with significant upside through exploration 1. Based on ASX announcement dated 2 March 2015 in relation to defin
Slide 26: Blue sky potential
Stage 3: Full Scale Blue sky potential The Browns Range dome is a massive For personal use only geological feature covering 1,500km2 and stretching 60km x 30km most of which hasn’t been effectively explored JORC Resource supporting an 11 year full scale operation ICEMAN Exploration target to add add
Slide 27: Beyond Browns Range
Stage 3: Full Scale For personal use only Beyond Browns Range Rock chip samples from the Boulder Ridge project confirm high- Rock chip samples up to 42% TREO with approximately 95% Heavy REO grade Heavy Rare Earths (HRE) Preliminary metallurgical tests indicate excellent recovery rates (>90%) Best r
Slide 28: Downstream Opportunities
Stage 4: Downstream For personal use only Downstream Opportunities Downstream separation of heavy rare earth elements Production of dysprosium oxide and terbium oxide Wider potential customer base Additional value capture Funded plan to investigate downstream opportunities 28
Slide 29: Investigating separation technologies
Stage 4: Downstream For personal use only Investigating separation technologies Initially investigating heavy rare earth separation 29
Slide 30: Corporate – 2018 – Delivering on potential
Corporate For personal use only 2018 – Delivering on potential 30
Slide 31: Key personnel and partners
Corporate For personal use only Key personnel and partners Key Site Personnel: Eben Van Rooyen – Resident Manager Tony Hadley – General Manager George Bauk Managing Robin Jones Director/CEO Chief Operating Officer Bin Cai Executive Officer Mark Tory Robin Wilson Chief Financial Exploration Officer M
Slide 32: Corporate Overview
Corporate For personal use only Corporate Overview 32
Slide 33: In conclusion
Corporate For personal use only In conclusion • Pilot plant production to commence in July 2018 • Three year project to demonstrate and assess economic and technical feasibility of full scale operation • Browns Range on track to be a globally significant supplier of dysprosium • Quality management a
Slide 34: Delivering critical technology metals to the EV evolution
For personal use only Delivering critical technology metals to the EV evolution ASX:NTU
Slide 35: Appendices
For personal use only APPENDICES
Slide 36: Dysprosium
Dysprosium 99% For personal use only 66 Dy Production from China Lighter & More Efficient 162.5 20m 100g 2,000tpa Forecast EV Dysprosium per EV demand for Government sales by 2025 electric vehicle Dy by 2025 mandated change Powering Technology Heavy Rare Earths ASX:NTU 36
Slide 37: Browns Range - Filling the Dysprosium supply gap
Browns Range - Filling the Dysprosium supply gap For personal use only Browns Range More than one Browns Range required to fill the supply gap Dysprosium Production forecast Browns Range Dysprosium forecast* Forecast Dysprosium demand Source: Adamus Intelligence, Northern Minerals 37
Slide 38: HRE – sustainable pricing
2600 2400 Dysprosium Oxide 99%min China RMB/kg HRE – sustainable pricing 2200 For personal use only 2000 RMB/kg 1800 Increased demand from new EV sales coupled with crackdown 1600 1400 on illegal mining in China will positively impact prices 1200 1000 15/03/2013 15/03/2014 15/03/2015 15/03/2016 15/0
Slide 39: Four stage approach to full value capture
For personal use only Four stage approach to full value capture Stage 1 Stage 2 Stage 3 Stage 4 TEST PILOT PLANT REFINE PROJECT BUILD FULL SCALE DOWNSTREAM • 10% of full scale capacity • Reduce mining cost - • 585,000tpa operation • Downstream separation • Production – July 2018 modify mining method
Slide 40: Full Scale Feasibility Study
Stage 3: Full Scale Feasibility Study • The three-year pilot project has been designed to assess the technical and economic feasibility of the proposed full-scale development. For personal use only Mining • Key aspects of assessment during the Pilot Plant phase: Processing Plant Mining and ore varia
Slide 41: Heavy rare earths crucial to growth of electric vehicle sector
Heavy rare earths crucial to growth of electric vehicle sector NdDyFeB permanent magnets used by major electric For personal use only vehicle (EV) manufacturers require Dysprosium and Terbium as key additives for high performance Changing policy settings by European governments and future developmen
Slide 42: Browns Range – An Eight Year Journey
Browns Range – An Eight Year Journey For personal use only 42
Slide 43: Global EV growth drivers
For personal use only Global EV growth drivers Battery technology Regulatory support for eliminating range technology lower emission vehicles Consumer demand EVs approaching price reaches inflection point parity with combustion vehicles 43
Slide 44: EV acceptance reached inflection point in 2017
EV acceptance reached inflection point in 2017 For personal use only 44
Slide 45: US recognises rare earths as critical
US recognises rare earths as critical • In December 2017, President Trump signed a ‘Presidential Executive For personal use only Order on a Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals’ • In February 2018, the US Department of the Interior released a draft list of 35
Slide 46: Chinese carmakers to dominate EV production
Chinese carmakers to dominate EV production For personal use only 46
Slide 47: Mineral Resources
For personal use only Mineral Resources 1 – Rounding may cause some computational discrepancies (TREO (metal) tonnes estimated from Mt x TREO%) Mineral resources as per NTU announcement 2 March 2015 in relation to increased reserves. 47
Slide 48: Ore Reserves
For personal use only Ore Reserves Ore reserves as per NTU announcement 2 March 2015 in relation to increased reserves. 48
Slide 49: Pilot plant: targeted production
Pilot plant: targeted production For personal use only Mixed RE carbonate (REC) produced Product specification available for REC REC samples validated by several downstream separators REC suitable for solvent extraction separation Low thorium and uranium levels First shipment planned for September q
Slide 50: NTU Board
NTU Board Colin McCavana - Non-executive Chairman (appointed 2006) Mr McCavana has more than 35 years of management experience worldwide in the For personal use only earthworks, construction and mining industries. George Bauk - Managing Director / CEO (appointed 2010) George is an experienced execut
Slide 51: Executive Team
Executive Team For personal use only 5 years 5 years 12 years 1 year 2 months Mark Tory Robin Jones Robin Wilson Eben Van Rooyen Tony Hadley Chief Financial Officer Chief Operating Officer Exploration Manager Resident Manager General Manager Mark is a Chartered Robin has more than 20 Robin has held
Slide 52: The Northern Minerals SPIRIT
For personal use only The Northern Minerals SPIRIT 52
Northern Minerals — Argus Specialty Metals Week April 2018 on 6ix