Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Shareholder Meeting (November 2017)
21 slides from Arafura Rare Earths's shareholder meeting presentation, Nov 16, 2017
Slide 1: Arafura Resources Limited November 2017 AGM Presentation
For personal use only Arafura Resources Limited Up and coming supplier of NdPr to permanent magnets used in the growing clean energy industry November 2017 AGM Presentation
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: Investment Highlights & Capital Structure
Investment Highlights & Capital Structure 3 For personal use only • Nolans Project in the Northern Territory, low geopolitical risk, 30+ year mining and chemical processing operation ASX Code ARU • One of the largest and richest deposits of Neodymium- Share Price (15-Nov-17) A$0.11 Praseodymium (NdP
Slide 4: NdPr Market Update
For personal use only 4 NdPr Market Update Arafura Resources Limited (ASX:ARU) November 2017
Slide 5: Overview: Secure Supplier of NdPr to Permanent Magnets Used in Clean Energy
Overview 5 For personal use only Secure Supplier of NdPr to Permanent Magnets Used in Clean Energy • NdPr is a key component in the manufacture of high-strength NdFeB permanent magnets used in electric vehicles (EVs), wind turbines, portable electronic devices, and many industrial applications • EVs
Slide 6: NdPr Snapshot – Clean Energy Applications
NdPr Snapshot – Clean Energy Applications 6 For personal use only EV Drivetrain: 1 kg of NdPr Electric Vehicles: 41 million by 2040 each containing 1.7 kg of NdPr Wind Turbines: Up to 150 kg of NdPr per MW Electric Bicycles: 30 million in 2017 each containing 0.1 kg of NdPr Arafura Resources Limited
Slide 7: Established Markets & Growing Applications
Established Markets & Growing Applications 7 For personal use only Source: Adamas Intelligence, Arnold Magnetic Technologies, Japanese industry participants, Roskill Arafura Resources Limited (ASX:ARU) November 2017
Slide 8: Automakers EV Growth Strategy
Automakers EV Growth Strategy 8 For personal use only Arafura Resources Limited (ASX:ARU) November 2017
Slide 9: NdPr Price – Supply & Environmental Reform
NdPr Price – Supply & Environmental Reform 9 For personal use only • Enforced closure of illegal NdPr Oxide Pricing (US$/kg) 2015-2017 and unsustainable mines and $85 smelting $80 • China “big 6” consolidation $75 creates a more sophisticated $70 supply chain $65 • Improved chain of custody for NdPr
Slide 10: Emerging Demand Dynamic – China 2025 Strategy
Emerging Demand Dynamic – China 2025 Strategy 10 For personal use only • Steady increases in global magnet production 2014 to 2016, NdPr price movement indicates continued growth for 2017 • China’s domestic consumption will increase as it pursues clean energy objectives • To maintain magnet producti
Slide 11: Demand Growth – China a Net Importer?
Demand Growth – China a Net Importer? 11 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 manufacture, as a 200,000 priority • Commercial activity and expansion of non-China NdPr
Slide 12: Non-China Supply Peer Comparison
Non-China Supply Peer Comparison 12 For personal use only • Non-China NdPr supply will be constrained by the sector’s historical inability to attract capital • Nolans is one of the world’s largest and more advanced undeveloped NdPr projects which provides investors with a compelling investment oppor
Slide 13: Project Delivery
For personal use only 13 Project Delivery Arafura Resources Limited (ASX:ARU) November 2017
Slide 14: Pilot Scale Work Completed In 2017
Pilot Scale Work Completed In 2017 14 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 15: Remaining Piloting Activities 2017-18
Remaining Piloting Activities 2017-18 15 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 Sulf
Slide 16: Piloting & Final Feasibility
Piloting & Final Feasibility 16 For personal use only COMMENCED 2018 Targets • Finalisation of piloting • Environmental approvals – supplement lodged with NT Environment Protection Authority • Advance offtake arrangements • Completion of definition stage engineering and Definitive Feasibility Study
Slide 17: Nolans Funding Strategy
Nolans Funding Strategy 17 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 18: Summary
Summary 18 For personal use only Attribute Arafura High-growth and high-value NdFeB permanent magnet focus ✓ NdPr production planned to coincide with projected supply gap ✓ ✓ Lowest production cost to remain competitive in a cyclical downturn Located in a jurisdiction with low geopolitical risk and
Slide 19: 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 AGM Presentation
Slide 20: Appendix A: Mineral Resources
Appendix A: Mineral Resources 20 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 21: Appendix B: Peer Comparison
Appendix B: Peer Comparison 21 For personal use only Notes and assumptions used in the preparation of the Peer ASX-Listed Peer Group Companies Comparison Project Code Company Name Project Location Interest • Exchange rate of AUD1 = USD 0.795. ARU Arafura Resources Ltd Nolans NT 100% LYC Lynas Corpor
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