Ionic Rare Earths Limited · ASX:IXR
Ionic Rare Earths — 121 Mining Investment Conference (May 2022)
48 slides from Ionic Rare Earths's conference presentation, May 10, 2022
Slide 1: Developing a magnet and heavy rare earth supply chain
For personal use only Developing a magnet and heavy rare earth supply chain 121 Mining Investment Conference IONICRE.COM.AU MAY 2022
Slide 2: Cautionary Statement
Cautionary Statement For personal use only IMPORTANT NOTICE AND DISCLAIMER This presentation should be considered in its entirety. If you do not understand the material contained in this presentation, you should consult your professional advisors. The sole purpose of this presentation is to provide
Slide 3: NdFeB Permanent Magnet Supply Chain and Demand to 2030
NdFeB Permanent Magnet Supply Chain and Demand to 2030 For personal use only EV & OFFSHORE WIND DEMAND FOR NEW, ALTERNATIVE SUPPLY CHAINS FOR OF NdFeB PERMANENT MAGNETS FOR WILL EXCEED SUPPLY • Rare earths are amongst the most resource- critical raw materials: they are of highest economic importance
Slide 4: IonicRE targeting new, secure Rare Earths supply
IonicRE targeting new, secure Rare Earths supply For personal use only DEVELOPING A SECURE, TRACEABLE, MAGNET AND HEAVY RARE EARTH SUPPLY CHAIN TO FACILITATE CARBON NEUTRALITY The Mine – Makuutu The Refinery – Secure Supply The Basket – High Margin Increasing Demand, Reducing Supply – NOW Makuutu is
Slide 5: IonicRE Corporate Snapshot
IonicRE Corporate Snapshot For personal use only STRATEGIC VALUE DRIVEN BY THE UNIQUE MAGNET AND HEAVY REO BASKET CAPITAL STRUCTURE (as @ 03/05/2022) $0.10 200 Shares Outstanding 3,869,304,920 Volume Share Price $0.09 180 Total Options Outstanding 199,000,000 (exercisable at 1.8 to 6.4 cents) Total
Slide 6: IonicRE Value Proposition
IonicRE Value Proposition For personal use only MAKUUTU’S STRATEGIC IMPORTANCE WILL INCREASE LONG TERM • Large MRE upgraded, exploration upside remaining • Long-life, low-CAPEX, high-payability MREC basket asset, modular “When peering into the outlook for the next decade development responsive to
Slide 7: Makuutu Rare Earths Project
For personal use only Makuutu Rare Earths Project Low Capital, Modular, Ionic Adsorption Clay Project IONIC RARE EARTHS PAGE 7
Slide 8: Harnessing the wide appeal of the Makuutu Basket
Harnessing the wide appeal of the Makuutu Basket For personal use only MAKUUTU PROVIDES A UNIQUELY BALANCED BASKET WITH 73% MAGNET AND HEAVY RARE EARTHS MRE update delivered 70% Makuutu is unique and Existing Infrastructure at Significant Exploration upside increase in total resource, receiving glob
Slide 9: ESG initiatives advancing at Makuutu
ESG initiatives advancing at Makuutu For personal use only ESG FRAMEWORK TO BUILD LASTING LEGACY, DEFINING PATH TO NET ZERO CARBON RARE EARTH FOOTPRINT Environmental and Social Rehabilitation to consider Community Support Programs Community socio-economic Impact Assessment (ESIA) development of long
Slide 10: Mineral Resource Estimate Update
Mineral Resource Estimate Update For personal use only UPDATED MRE DELIVERS 70% INCREASE TO OVER 500 MILLITON TONNES & 500%+ INCREASE IN INDICATED RESOURCE BASE Updated JORC MRE1 of 532 million tonnes @ 640 ppm Total Rare Earths Oxide (TREO), at a cut-off grade of 200 ppm TREO-CeO2 76% of Makuutu MR
Slide 11: Tier-One Infrastructure already there – supports low CAPEX Development
Tier-One Infrastructure already there – supports low CAPEX Development For personal use only EXCELLENT LOCAL INFRASTRUCTURE SUPPORTS LOW CAPEX DEVELOPMENT LOGISTICS Approximately 10 km from Highway 109, connecting Makuutu to both capital city Kampala and Port of Mombasa, Kenya Approximately 20 km fr
Slide 12: IonicRE Basket is a highly strategic basket with High Value
IonicRE Basket is a highly strategic basket with High Value For personal use only DOWNSTREAM PROCESSING TO REO AND VALUE ADDED PRODUCTS UNLOCKS SIGNIFICANT UPSIDE REO Pricing IonicRE progressing & evaluating (China) Makuutu Basket MAKUUTU BASKET CONTENT downstream REE separation and refining Rare Ea
Slide 13: IonicRE Basket – Revised Forecast Pricing tailwinds
IonicRE Basket – Revised Forecast Pricing tailwinds For personal use only FORECAST REO PRICING REVISED UPWARDS OVER PAST 12 MONTHS • Makuutu current spot REO basket Makuutu Basket Forecast Price (REO) price ~35% higher than initial 5 years of $140 Scoping Study forecast prices adopted • Recent Q1 20
Slide 14: Makuutu Rare Earth Project – Feasibility Study Upside
Makuutu Rare Earth Project – Feasibility Study Upside For personal use only INCREASED INDICATED RESOURCE BASE TO SUPPORT FEASIBILITY STUDY DUE OCTOBER 2022 Ionic Adsorption Clay (IAC) deposit mineralisation is highly desirable given it produces a balanced basket dominant in magnet & heavy REO Global
Slide 15: Project Development Activities
Project Development Activities For personal use only MAKUUTU FEASIBILITY STUDY PROGRESSING TOWARDS COMPLETION Q4 2022 • Metallurgical testwork ramped up • Accelerated variability bottle rolls, heap leach columns, mineralogy programs progressing towards geometallurgical model for Makuutu, with broad
Slide 16: Investment in Uganda – The Pearl of Africa
Investment in Uganda – The Pearl of Africa For personal use only MAJOR INTERNATIONAL INVESTMENT INTO UGANDA IS UNDERWAY • Ugandan law allows for 100% foreign-owned businesses, and foreign businesses are allowed to partner with Ugandans without restrictions. • The US$10B Lake Albert Oil Project (Tota
Slide 17: Makuutu Timeline to Production
Makuutu Timeline to Production For personal use only ACCELERATING MAKUUTU TOWARDS PLANNED PRODUCTION IN 2024 2022 2023 2024 ACTIVITY Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Metallurgy Testwork MRE Update completed ESIA (submitted Dec 2021) Feasibility Study Landowner Agreements Funding Agreements Mining Licence
Slide 18: REE Supply Chain and IonicRE Capability to date
REE Supply Chain and IonicRE Capability to date For personal use only IONICRE ADDING CAPACITY TO BECOME MORE INTEGRATED IN NEW FUTURE RARE EARTH SUPPLY CHAINS 1. Makuutu Rare Earths Project 2. IonicRE Refinery 3. Magnet Recycling • Low Capital, modular development • Under Evaluation now assessing •
Slide 19: China Dominates Global REE Separation & Refining Capacity
China Dominates Global REE Separation & Refining Capacity For personal use only ALL HEAVY RARE EARTH ROADS LEAD TO CHINA …. UNTIL NOW Global heavy REO separation and refining capacity operated NPM Silmet and controlled by China1 Estonia Light Rare Earth Separation and Refining Northern Rare Earths B
Slide 20: Standalone Refinery to unlock value of balanced basket REOs
Standalone Refinery to unlock value of balanced basket REOs For personal use only DEVELOPMENT SUPPLY CHAIN TO PRODUCE REOs OF INCREASING DEMAND AND DECREASING SUPPLY • Rare earth separation and refinery facility developed to take REO Production Rare Earth Capacity1 Major Applications and Uses advant
Slide 21: NdFeB Magnet Recycling
NdFeB Magnet Recycling For personal use only DEVELOPING CAPACITY ON RARE EARTH SEPARATION, REFINING AND RECYCLING • IonicRE completed acquisition of Seren Technologies Ltd (ASX: April 2022), a leading magnet recycling technology company • Previous pilot plant campaigns have processed rare earth wast
Slide 22: Looking Forward to remainder of 2022
Looking Forward to remainder of 2022 For personal use only KEY ACTIVITIES OVER THE REMINDER OF 2022 TO UNLOCK SUBSTANTIAL VALUE AT IONIC RARE EARTHS • Updated Exploration Target for Makuutu Project tenements (Q2 2022) • Feedback on ESIA in Uganda (Q2 2022) • Phase 2 Metallurgical variability and tes
Slide 23: Additional Slides
For personal use only ADDITIONAL SLIDES IONIC RARE EARTHS PAGE 23
Slide 24: Significant Advantages for IAC Mining/Processing vs Hardrock
Significant Advantages for IAC Mining/Processing vs Hardrock For personal use only Ionic Clay Rare Earth Elements Vs Hard Rock Rare Earth Elements Ionic Adsorption Clay (IAC) deposit mineralisation is highly Significant project and cost advantages associated with ionic clay projects like Makuutu des
Slide 25: The REE Basket Problem – the Solution requires ‘Balance’
The REE Basket Problem – the Solution requires ‘Balance’ For personal use only IONICRE THROUGH MAKUUTU CAN DELIVER UNIQUE BALANCE TO WESTERN HREO PRODUCTION FROM ‘RARE’ IAC MINERALISATION Ionic Adsorption Clay (IAC) deposit mineralisation is highly desirable given it produces a balanced REO basket d
Slide 26: Makuutu Basket is Balanced, magnet +HREO Dominant, & High Value
Makuutu Basket is Balanced, magnet +HREO Dominant, & High Value For personal use only Australian Hastings Ionic Rare Lynas Rare Arafura Peak Pensana Rare Northern Namibia Rare USA Rare Company Aclara1 Serra Verde2 MP Materials4 Strategic Technology Earths Earths3 Resources5 Resources8 Earths9 Minera
Slide 27: Makuutu and Critical Raw Materials 2020
Makuutu and Critical Raw Materials 2020 For personal use only MAKUUTU BASKET CONTAINS HIGH RANKED CRMs IDENTIFIED IN 2020 EU STUDY REQUIRED TO ACHIEVE CARBON NEUTRALITY Secure and sustainable supply of both Economic Importance vs Supply Risk results for 2020 criticality assessment1 primary and secon
Slide 28: IonicRE Vision – Facilitating Manufacturing
IonicRE Vision – Facilitating Manufacturing For personal use only DEVELIVERING MAGNET & HEAVY REO SUPPLY CHAIN TO CREATE NEW INDUSTRY AND JV’s • Through the availability of long-life, low-cost MREC from Makuutu, IonicRE aiming to develop relationships with key industry participants to generate EU an
Slide 29: NdFeB Magnet Recycling – low cost, modular plan
NdFeB Magnet Recycling – low cost, modular plan For personal use only FIRST MOVER CAPABILITY FOR DOWNSTREAM MAGNET RECYCLING TO SEPARATED 99.99%+ MAGNET RARE EARTH OXIDES • Seren Technologies patented process uses chemical extraction to extract the magnet REE from the spent magnets to enable recycli
Slide 30: REE Demand – Magnet Recycling to help fill the void
REE Demand – Magnet Recycling to help fill the void For personal use only LAG IN INVESTMENT OF PRIMARY RARE EARTH EXTRACTION & POTENTIAL FOR NEAR TERM MAGNET RECYCLING • Lack of historical investment will result in near term demand far exceeding supply • Installation of primary extraction (i.e. mini
Slide 31: Facilitating the automotive rEVolution
For personal use only Facilitating the automotive rEVolution 43% Magnet REOs required for Permanent Magnet drives for EVs IONIC RARE EARTHS PAGE 31
Slide 32: Electric Vehicles – Driven by NdPr (and DyTb)
Electric Vehicles – Driven by NdPr (and DyTb) For personal use only Nd, Pr, Dy & Tb EXPECTED TO BE IN DEFICIT BY 2027 • Worldwide EV demand driving insatiable appetite for NdPr, but DyTb largely overlooked • NdFeB permanent magnets (PM) are essential for producing light, compact and high efficiency
Slide 33: Facilitating Offshore Wind Capability
For personal use only Facilitating Offshore Wind Capability IonicRE basket producing all the Nd, Pr, Dy and Tb required for offshore wind turbines IONIC RARE EARTHS PAGE 33
Slide 34: Land Constrained – Go Offshore
Land Constrained – Go Offshore For personal use only COUNTRIES ADOPT OFFSHORE WIND TURBINES TO REACH CO2 TARGETS Current world offshore wind The International Renewable Energy turbine capacity is 36 GW Agency (IRENA) also has a 1TW ambition by 2050. Argus1 estimates an additional 235 US DOE announce
Slide 35: No DyTb – No Offshore Wind Turbine Capacity
No DyTb – No Offshore Wind Turbine Capacity For personal use only THE BASICS – HOW MUCH REO IS REQUIRED PER MW OF OFFSHORE TURBINE CAPACITY? Rare-earth elements and boron (B) are essential for turbine Most direct-drive turbines, but also to different extents certain designs that employ permanent mag
Slide 36: Makuutu & Offshore Wind Turbine Capacity
Makuutu & Offshore Wind Turbine Capacity For personal use only MAGNET REO – SUPPLY FAILING DEMAND ‘ESCAPE VELOCITY’ BY 2027 • Forecast offshore capacity increase by 235 GW by 20301,2 (25% CAGR) • 2020 global offshore wind turbine capacity of 35.7 GW • 2020 added capacity of 6.07 GW with 2021 insta
Slide 37: Facilitating Defence Capability
For personal use only Facilitating Defence Capability IonicRE basket – Heavy Rare Earth Strategic Appeal for Defence Applications IONIC RARE EARTHS PAGE 37
Slide 38: Magnet & Heavy REO crucial in Defence Applications
Magnet & Heavy REO crucial in Defence Applications For personal use only DEFENCE HREO SUPPLY CHAIN – PROVIDING SECURE SOURCE OPTION Makuutu Basket ~73% used in Defence Applications La2O3 13.5% Y2O3 25.4% Y2O3 used in F-35 presently sourced from IACs in southern Lu2O3 China and Myanmar 0.2% CeO2 13.5
Slide 39: Magnet & Heavy REO crucial in Defence Applications
Magnet & Heavy REO crucial in Defence Applications For personal use only DEFENCE HREO SUPPLY CHAIN – MAKUUTU POTENTIALLY SUPPLIES IT ALL US Navy Virginia Class Submarine • Numerous Magnet & HREO materials are used in defence applications in the engines, disk drive motors, radar of the aircraft, fin
Slide 40: Magnet & Heavy REO – IonicRE Production Delivers Every Need
Magnet & Heavy REO – IonicRE Production Delivers Every Need For personal use only US Navy Virginia Class Submarine La Sm Tb Pr Eu Lu Nd Dy Y Lockheed Martin F-35 Lightning II Joint Strike Fighter Rare Earth Elements in National Defense: Background, Oversight Issues, and Options for
Slide 41: Heavy Rare Earth Dominant
For personal use only Heavy Rare Earth Dominant IonicRE basket – 44% Heavy Rare Earths deployed in high end applications IONIC RARE EARTHS PAGE 41
Slide 42: Key HREO Applications without Substitute – New Supply Required
Key HREO Applications without Substitute – New Supply Required For personal use only HREO USED IN HIGH END FOR NICHE APPLICATIONS – NO SUBSTITUTION FOR REOS IN SPECIFIC APPLICATIONS MRI Machine PET Scan NdFeB and SmCo permanent magnets Erbium is a key input into enabling 5G technology • IAC mines in
Slide 43: Key HREO Applications – Fibre Laser outlook to 2030
Key HREO Applications – Fibre Laser outlook to 2030 For personal use only GLOBAL FIBRE LASER MARKET VALUE ESTIMATED TO REACH US$8.42 BILLION BY 2030 (CAGR 14.5%) • Global fiber laser market value estimated to be US$2.23 Billion in 2020 • Optical fibers used in the fiber laser are doped with rare ear
Slide 44: Scandium Upside
For personal use only Scandium Upside IonicRE basket – Scandium to unlock new industries and ’Blue Sky’ IONIC RARE EARTHS PAGE 44
Slide 45: Makuutu is one of the largest global Scandium resources… and growing
Makuutu is one of the largest global Scandium resources… and growing For personal use only 2ND LARGEST GLOBAL SCANDIUM RESOURCE REPORTED Dalur (Rosatom) Kovdor (EuroChem) Deposit Metals: U, Sc Deposit Metals: FeO, Phosphate Scandium Resource: unknown Scandium Resource: unknown Project Status: Produc
Slide 46: Applications with Aluminium in Light-weighting Transportation
Applications with Aluminium in Light-weighting Transportation For personal use only The need for light-weighting solutions has dramatically increased the adoption of aluminium alloys in transportation. Stricter efficiency standards, the advent of the electric vehicle and the emergence of new sectors
Slide 47: Scandium Market Potential
Scandium Market Potential For personal use only SIGNIFICANT POTENTIAL FOR SCANDIUM MARET TO GROW RAPIDLY IN GLOBAL TRANSPORT SECTORS While the current scandium (Sc) market is 15-20 tonnes per annum scandium oxide (Sc2O3), the global transportation industry has the potential to turn scandium into a b
Slide 48: Ionic Rare Earths Limited
For personal use only Ionic Rare Earths Limited Level 1, 34 Colin Street West Perth WA 6005 Australia www.ionicre.com.au admin@ionicre.com.au T +61 8 9481 2555 F +61 8 9485 1290 IONIC RARE EARTHS PAGE 48
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