Australian Rare Earths Limited · ASX:AR3
Australian Rare Earths — Investor Presentation (May 2022)
21 slides from Australian Rare Earths's investor presentation, May 2022
Slide 1: Australia's Leading Rare Earth Ionic Clay Company
www.ar3.com.au Australia’s Leading Rare Earth Ionic Clay Company Investor Update – May 2022 ASX:AR3
Slide 2: Corporate Snapshot
CORPORATE SNAPSHOT ORIGINAL SHAREHOLDERS UNDERSTAND AND ARE INVESTED IN THE INDUSTRY AND COMPANY Distribution of shareholders Share trading since IPO Bryn Jones $1.40 3.5m 13.8% Volume (RHS) Closing price (LHS) $1.20 3.0m Other < 1 million shares $1.00 2.5m 34.2% Acorn Capital 13.8% $0.80 2.0m $0.60
Slide 3: Demand for Rare Earths Is Expected to Double by 2030
DEMAND FOR RARE EARTHS IS EXPECTED TO DOUBLE BY 2030 THE FORECAST GLOBAL EV AND TURBINE MARKET IS OVER $1 TRILLION! Electric vehicle Direct-drive wind • Rare earth elements include the 15 lanthanides plus scandium and EVs motors require Wind turbines require up yttrium turbines 1-2kg of NdFeB 3 tonn
Slide 4: However, China and Myanmar Dominate the Supply Chain
HOWEVER, CHINA AND MYANMAR DOMINATE THE SUPPLY CHAIN INCLUDING MA JORITY OF HEAVY RARE EARTH PRODUCTION AND END USE Historical rare earth mine production by country • China and Myanmar create >90% of end-user demand and supplies Neodymium & Praseodymium Dysprosium & Terbium >75% of this demand Other
Slide 5: Australian Rare Earths Limited
AUSTRALIAN RARE EARTHS LIMITED EXPLORING A NEW CLAY HOSTED RARE EARTH RESOURCE • Koppamurra is a 100% owned, clay hosted rare earth mineral resource, located along the South Australian border with Victoria • Early modelling of Koppamurra points to a potential large and long life resource • Drill cor
Slide 6: Koppamurra Mineral Resource
KOPPAMURRA MINERAL RESOURCE Adelaide POTENTIAL OF BECOMING A VERY LARGE, LONG-LIFE RESOURCE • ~4,000km² of granted tenure in South Australia and Victoria, of which ~10% has been drilled to date • Rare earth mineralisation in a clay layer ~10m from surface, deposited above a limestone base • Drilled
Slide 7: Koppamurra Metallurgy
KOPPAMURRA METALLURGY PROCESS DEVELOPMENT IN COLLABORATION WITH WORLD EXPERTS • Mineralogical analysis identified concentration of rare earth elements in fine (<20µm) clay • Metallurgical recoveries of 45% average and up to 68% of magnet rare earth elements was achieved in early testwork • Commenced
Slide 8: Koppamurra: A Unique Clay Hosted Rare Earth Deposit
KOPPAMURRA: A UNIQUE CLAY HOSTED RARE EARTH DEPOSIT CLAY HOSTED RARE EARTH DEPOSITS ARE SCARCE OUTSIDE OF CHINA Clay Deposits Hard Rock Deposits Location • Currently mined in China/Myanmar but depleting • China dominates but growing ROW developments • Supply virtually all heavy rare earths (>80%) an
Slide 9: Peer Benchmarking
PEER BENCHMARKING AR3 COMPARES VERY FAVORABLY ON BASKET PRICE Basket price (US$ per kg REO) Browns Range NTU, EV: US$160m Koppamurra AR3, EV: US$48m Penco Aclara, EV: US$-16m Ionic clay resources such as Koppamurra have relatively higher proportions of high- Nechalcho Vital, EV: US$163m value heavy
Slide 10: Community and Land
COMMUNITY AND LAND AN ACTIVE AND RESPONSIBLE MEMBER OF THE COMMUNITY • Naracoorte office/warehouse managed by local personnel • Investigating continuous land rehabilitation as part of mining method • Groundwater study to commence on Q2 2022 • Educational initiatives with local schools and University
Slide 11: New Tenements
NEW TENEMENTS AUSTRALIAN RARE EARTHS IS LIVING UP TO ITS’ NAME Woolgangie – 87km SW of Kalgoorlie, WA • JV with Belres Pty Ltd that includes two granted exploration tenements and five pending applications • Previous drilling identified significant thicknesses up to 22m of anomalous rare Massie Creek
Slide 12: Achievements and Future Milestones
ACHIEVEMENTS AND FUTURE MILESTONES SEP 2020 APR 2021 JUL 2021 OCT 2021 DEC 2021 JAN 2022 FEB 2022 MAR 2022 APR 2022 Koppamurra Maiden A$12m IPO Appointment 9,920m drill Drilling confirms Highest grades New tenements Positive inferred and AR3 of Pauline program regional discovered in WA and QLD metal
Slide 13: Value Proposition
VALUE PROPOSITION AN EMERGING RARE EARTH EXPLORER AND ADDED-VALUE SUPPLIER • One of very few clay hosted rare earth deposits outside China/Myanmar • Rapid, low-cost exploration with potential for a very large resource • Excellent project location with strong community and landowner relations • Metal
Slide 14: Supplementary Information
SUPPLEMENTARY INFORMATION 14
Slide 15: Board and Management
BOARD AND MANAGEMENT DIVERSE LEADERSHIP TEAM WITH BROAD SKILLSETS Professor Dudley Kingsnorth Pauline Carr Chair Internationally recognised rare earths industry expert, providing advice to Non-executive director producers, end users and governments Experienced company director in compliance, governa
Slide 16: What Are Rare Earth Elements?
WHAT ARE RARE EARTH ELEMENTS? 90% OF VALUE IS CONTAINED IN THE FOUR MAGNET RARE EARTH ELEMENTS • Rare earth elements comprise 15 lanthanides plus scandium and yttrium • They are used in many high-tech applications in small volumes but critical to performance • Demand for Neodymium Iron Boron (NdFeB)
Slide 17: Rare Earth Deposit Comparison
RARE EARTH DEPOSIT COMPARISON CLAY HOSTED RARE EARTH DEPOSITS ARE UNCOMMON OUTSIDE CHINA/MYANMAR 1. Hard Rock Rare Earth Deposits Beneficiation Cracking Leaching Precipitation Separation & finishing Hard rock ore Mineral concentrate Calcined Pregnant leach Mixed RE carbonate RE oxides 1 – 10% REO 10
Slide 18: The Timing Is Right for a Diversified Supply Chain
THE TIMING IS RIGHT FOR A DIVERSIFIED SUPPLY CHAIN UPSTREAM AND DOWNSTREAM SUPPLY OF RARE EARTHS ID DOMINATED BY CHINA • Western Governments have identified rare earths as a high supply risk in the development of future economies, designating REEs as critical minerals by the IEA, USGS, EU and Austra
Slide 19: Electric Vehicles
ELECTRIC VEHICLES RARE EARTH PERMANANET MAGNETS ARE VITAL FOR MANUFACTURING ELECTRIC MOTORS • Magnet rare earth prices are leveraged to electric vehicle demand – each vehicle requires 1-2kg of NdFeB permanent magnets • Adamas Intelligence estimates 6,500 tonnes of NdFeB magnets were used in 5 millio
Slide 20: Wind Turbines
WIND TURBINES RARE EARTH PERMANANET MAGNETS ARE VITAL FOR MANUFACTURING GENERATORS • NdFeB magnets are increasingly used in wind turbine generators due to their power-density Forecast new wind energy deployments (GW) properties • Permanent magnet direct-drive wind turbines require up to 600kg of NdF
Slide 21: www.ar3.com.au ASX:AR3
www.ar3.com.au ASX:AR3
Australian Rare Earths — Investor Presentation (May 2022) on 6ix