Astron Limited · ASX:ATR
Astron — Investor Presentation (May 2023)
39 slides from Astron's investor presentation, May 17, 2023
Slide 1: Donald Rare Earths & Mineral Sands Project
Advanced, Globally Significant, Tier 1 Australian Critical Minerals Project Donald Rare Earths & Mineral Sands Project Astron Corporation Limited (ASX:ATR) Donald Test-pit During Excavation, 2018 Investor Presentation – May 2023
Slide 2: Disclaimer
Disclaimer CAUTIONARY STATEMENT COMPETENT PERSONS STATEMENT This presentation has been prepared by Astron Corporation Limited (Astron or the “Company”). The information The information in this report that relates to the MIN5532 Mineral Resource estimate is based on information and contained in this
Slide 3: Astron Corporation: Corporate Overview
Astron Corporation: Corporate Overview Astron is focused on the development of the world-class Donald Rare Earths and Mineral Sands Project ASX Code ASX:ATR Key Project: Donald Securities on Issue 133.6 M Advanced project with globally significant Share Price1 A$0.485 size and scale, major regulator
Slide 4: Globally Significant, Scalable Critical Minerals Project
Globally Significant, Scalable Critical Minerals Project Ambitions of becoming a multi-generational supplier of critical minerals and generating shareholder wealth in the process • 100% ownership of world’s third largest rare earth resource ex-China, and the largest zircon resource globally Globally
Slide 5: Critical Minerals for a Sustainable World
Critical Minerals for a Sustainable World Decarbonisation and energy transition are heavily dependent on sustainable supply of critical minerals Rare Earths Zirconium Titanium Minerals Project Revenue Composition1 Donald Project contains an attractive product mix, skewed towards high value rare eart
Slide 6: Experienced Project Team To Deliver the Donald Project
Experienced Project Team To Deliver the Donald Project Highly experienced Board & Management team with vast experience in corporate development Formerly overall responsibility for corporate development and exploration at RGC Limited, overseeing the merger of RGC and Westralian Sands Limited to form
Slide 7: The Donald Project
The Donald Project The Most Advanced Rare Earths Development Project in Eastern Australia Donald WCP Pilot Plant, 2018 7
Slide 8: The Donald Project
The Donald Project 100% owned world class asset in supportive jurisdiction with key regulatory approvals in place • Located ~300 kms north-west of Melbourne, near the regional towns of Minyip and Donald, on mainly freehold, arable land predominantly used for cropping and grazing Donald Rare Earth &
Slide 9: WIM-Styled Deposits - Significant Size and Scale
WIM-Styled Deposits - Significant Size and Scale WIM-style deposits are typically flat, shallow & extensive containing greater tonnages and more consistent VHM characteristics WIM-styled deposits are formed in historical land sea basins, as opposed to strand-styled deposits which are formed in ancie
Slide 10: Bringing to Life a Globally Significant Rare Earths and Zircon Project
Bringing to Life a Globally Significant Rare Earths and Zircon Project Rare Earths - Relative In-situ Rare Earth Resource – 3rd Largest Resource Ex-China 5.0 Contained TREO Resource1 (Mt) 4.5 4.0 3.5 >2.4 Mt of in-situ monazite (~1.6 Mt of TREO 3.0 equivalents) third largest rare earth project 2.5 o
Slide 11: Opportunity to Capture Further with Phased Production Growth
Opportunity to Capture Further with Phased Production Growth Scale of Mineral Resource allows phased development for efficient capital deployment and future value accretion Phase 1 - FY2024 Phase 2 - FY2029+ Phase 3 - FY2032+ MIN5532 RL2002 RL2003 Throughput: 7.5 Mtpa Throughput: 15 Mtpa Throughput:
Slide 12: The Donald Project - Phase 1
The Donald Project - Phase 1 Dual revenue stream underwritten by conventional mining operations and proven process flowsheet Phase 1 plans to produce two Conventional, Established and Proven Flowsheet Process Flow Diagram products, rare earth elements • Mining via conventional truck and excavator me
Slide 13: Extensive Evaluation & De-risking
Extensive Evaluation & De-risking Project significantly de-risked through successful pilot plant test work and systematic navigation of regulatory environment Advanced Regulatory Approval Status Significant lab & Pilot test work de-risks operating feasibility Key Approval Requirement Completed Date
Slide 14: Feasibility Study and Financials
Feasibility Study and Financials Donald Project Test-pit Rehabilitated, 2022 14
Slide 15: Phase 1 Financials
Phase 1 Financials Robust financial metrics deliver long-life, sustainable cash flows to drive shareholder value Financial metrics Unit Phase 1 Highlights • Compelling economics with a post-tax NPV of $852 million and post-tax IRR of 25.8% Post-tax NPV8 (FID) [A$m] 852 • Phase 1 is forecast to gener
Slide 16: Capital Expenditure
Capital Expenditure Project capital expenditure estimated to AACE Class 2 accuracy based on external independent design and engineering Cost Department A$m • Total execution capital has been estimated to an AACE Class 2 level of accuracy based on the contributions of external, independent consultant
Slide 17: Phase 1 Operating Expenditure
Phase 1 Operating Expenditure Competitive operating expenditure benchmarked against similar projects in Australia Average Cost per tonne • The annual operating expenditure estimate completed for the DFS has been derived from a first Average Operating area Expenditure of Ore Mined principles build-up
Slide 18: Sensitivity Analysis
Sensitivity Analysis Sensitivity analysis demonstrates a robust, resilient project Key sensitivities • Sensitivity analysis shows that even with large movements in the key variables, the Project returns a very attractive Post-tax NPV. The analysis illustrates the Donald Project is robust and can wea
Slide 19: Funding Strategy
Funding Strategy Project capital expenditure estimate to be funded by efficient deployment of debt and equity capital DEBT • ICA Partners appointed as Donald Project debt financial advisor • ICA Partners is a globally recognised, resource specialist firm experienced in critical mineral projects’ fin
Slide 20: Product Attributes and Market Dynamics
Product Attributes and Market Dynamics Zircon Product 20
Slide 21: Rare Earth Element Concentrate Market Tailwinds
Rare Earth Element Concentrate Market Tailwinds Globally significant western rare earth supply coming online at a time of increasing product demand Market Demand Market Supply • Adamas Intelligence forecasts TREO demand to increase three-fold at a CAGR of • Supply from developing projects is not exp
Slide 22: Heavy Mineral Concentrate Market Tailwinds
Heavy Mineral Concentrate Market Tailwinds New long-life supply in mining friendly jurisdictions required to meet forecast demand Zircon Titania • TZMI is forecasting an increase in global demand from 1.21mt in 2021 to 1.55mt in 2030, • The Donald titania production stream is expected to be a favour
Slide 23: Quality Product Attributes
Quality Product Attributes Astron’s attractive reserve assemblage translates into a high-quality product suite ensuring market acceptance Rare Earth Element Concentrate (REEC) Heavy Mineral Concentrate (HMC) • Donald’s REEC product is a high-quality monazite, xenotime concentrate that contains over
Slide 24: Considered, Targeted Offtake Approach
Considered, Targeted Offtake Approach Globally recognised offtake partners to be targeted Identification of Potential Offtake Partners Direct 1-on-1 Negotiations with Selected Parties Conversion of Term Sheet into Detailed Offtake • Leveraging Astron’s many years of industry • Working directly with
Slide 25: Next Steps
Next Steps 25
Slide 26: The Donald Project – Near Term Catalysts & Milestones
The Donald Project – Near Term Catalysts & Milestones Methodical development of a globally significant critical minerals resource • Lodge Work Plan demonstrating compliance with EES – underway, approval expected Q4 2023 Regulatory • Secure secondary approvals for project facilities - underway • Debt
Slide 27: Donald Project Development Timeline
Donald Project Development Timeline Clearly defined project execution strategy for effective project delivery 2027+ Commencement of Phase 2 Q1 2024 Q3 2025 evaluation Commissioning of Phase 1 Mid 2023 FID and commencement Q4 2022 Execute off-take agreements of Phase 1 construction Drill results rele
Slide 28: Further Information
Further Information Tiger Brown Managing Director Tel: +61 3 5385 7088 Email: contact@astronlimited.com Joshua Theunissen Company Secretary Tel: +61 3 5385 7088 Email: contact@astronlimited.com
Slide 29: Appendix: Rehabilitation & Environmental Management
Appendix: Rehabilitation & Environmental Management Minimise environmental impact through sustainable mining & rehabilitation 1. Excavation 2. Leveling • Test pit excavation in 2019 rehabilitated to its original landform demonstrating yield in-line with surrounding areas • Community recognition of t
Slide 30: Appendix: Rare Earth Product Testing – Valuable REEC
Appendix: Rare Earth Product Testing – Valuable REEC Strategically positioned at the head of the value chain, Astron is in active discussions with Typical Donald Project Rare Earth Product1 prospective processing partners for off-take agreements. By producing a rare earth concentrate on- Company Ast
Slide 31: Appendix: Premium Zircon – Superior Attributes
Appendix: Premium Zircon – Superior Attributes The premium zircon produced from Donald HMC has been independently confirmed by Foshan Ceramics Institute (leading Chinese ceramics institute) to be suitable for the premium ceramics market. Astron has extensive and long-term engagement with Zircon cust
Slide 32: Appendix: Donald Project Development Timeline
Appendix: Donald Project Development Timeline Clearly defined project execution strategy for effective project delivery DMS Summary Road Map 2023 2024 2025 Activity Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
Slide 33: Appendix: Process Plant Design
Appendix: Process Plant Design Admin Office and Laboratory Fresh Water Pond Wet Concentrator Plant Concentrate Upgrade Plant Process Water Pond HMC Loadout 3D Process Plant Design, 2023 33
Slide 34: Appendix: Planned Transport Routes
Appendix: Planned Transport Routes 3D Process Plant Design, 2023 34
Slide 35: Appendix: Donald Project Development Timeline
Appendix: Donald Project Development Timeline Technological innovations and market evolution cement Donald Project viability Historically, the commercial recovery of fine minerals has been seen as an impediment to the development of WIM-style deposits. Astron’s technology and extensive metallurgical
Slide 36: Appendix: History of Astron Corporation
Appendix: History of Astron Corporation Listed in 1983, Astron Corporation has nearly 40 years' experience in Mineral Sands 1983 1992 2001 2007 2012 2015 2019 2022 Listed on the ASX Import of zircon Advanced Materials Sold China Initial Ore Reserve First pilot plant Second Donald bulk Updated Minera
Slide 37: Appendix: Donald Project – Ore Reserve Statement
Appendix: Donald Project – Ore Reserve Statement MIN5532 RL2002 outside of MIN5532 The Ore Reserve has been classified as Proven Ore Reserves, based on Measured Mineral The Ore Reserve has been classified as Proven Ore Reserves, based on Measured Mineral Resources and Probable Ore Reserves, based on
Slide 38: Appendix: Donald Project – Mineral Resource Statement
Appendix: Donald Project – Mineral Resource Statement Mineral Resource above a 1% total HM cut-off Mineral Resource where VHM data is available reported above a cut-off of 1% total HM Classification Tonnes Total HM Slimes Oversize % of total HM (Mt) (%) (%) (%) Classification Tonnes HM Slimes Oversi
Slide 39: Appendix: Competitor Information & Disclosure
Appendix: Competitor Information & Disclosure SELECT COMPETITOR INFORMATION SOURCES 1. ASX Announcement, Sheffield Resources, ASX: SFX, Investor Presentation, 11 April 2023, Construction Stage 2. Kalbar Operations Pty Ltd, Investor Presentation to TZMI, November 2020, Development Stage 3. WIM Resour