Australian Rare Earths Limited · ASX:AR3
Australian Rare Earths — Investor Presentation (April 2023)
23 slides from Australian Rare Earths's investor presentation, Apr 4, 2023
Slide 1: Koppamurra: Bringing Diversity to Global Rare Earths Supply
Australian Rare Earths Corporate Presentation April 2023 For personal use only KOPPAMURRA: Bringing Diversity to Global Rare Earths Supply Establishing an independent source of critical rare earths for a clean energy future
Slide 2: Disclaimer & Important Information
Australian Rare Earths Corporate Presentation April 2023 For personal use only DISCLAIMER & IMPORTANT INFORMATION Australian Rare Earths Limited (‘AREL’ of the ‘Company’) does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or need
Slide 3: Koppamurra – Multi-Generational Supply Potential
Australian Rare Earths Corporate Presentation April 2023 For personal use only KOPPAMURRA – MULTI-GENERATIONAL SUPPLY POTENTIAL THE OPPORTUNITY ∙ EV’s, wind turbines, robotics and domestic appliances require Rare Earth Elements ∙ Western World is seeking sustainable independent supply chains ∙ Depos
Slide 4: An Australian Critical Metals Company
Australian Rare Earths Corporate Presentation April 2023 For personal use only AN AUSTRALIAN CRITICAL METALS COMPANY Distribution of shareholders Experienced team, strong backing, well-funded with community support Directors and Other, 57.6% Management 25.0% Professor Dudley Bryn Jones Rick Pobjoy K
Slide 5: Koppamurra – AR3's Cornerstone Asset
Australian Rare Earths Corporate Presentation April 2023 For personal use only KOPPAMURRA – AR3’s CONERSTONE ASSET A highly valuable potential source of critical rare earths in a Tier-1 location • 100%-owned clay-hosted critical rare earths deposit located ~300km SE of Adelaide, in southern Australi
Slide 6: Dovetail – Globally Significant Resource within Koppamurra Province
Australian Rare Earths Corporate Presentation April 2023 For personal use only DOVETAIL - GLOBALLY SIGNIFICANT RESOURCE WITHIN EXTENSIVE KOPPAMURRA RARE EARTH MINERAL PROVINCE Large, consistent, shallow deposit – exceptional growth potential Koppamurra Mineral Resource Estimate – Mar 2023 • Updated
Slide 7: Ongoing Resource Growth as Drilling Continues
Australian Rare Earths Corporate Presentation April 2023 For personal use only ONGOING RESOURCE GROWTH AS DRILLING CONTINUES Drilling to grow this new resource has been underway since Feb 1st • Drilling completed to date, for which assays are still pending, encompasses an area of 15km2 which compare
Slide 8: Outstanding Growth Potential
Australian Rare Earths Corporate Presentation April 2023 For personal use only OUTSTANDING GROWTH POTENTIAL Deposit remains open with a substantial upside remaining • ~4,000km² of granted tenure in South Australia and Victoria • Rare earth mineralisation hosted in a clay layer < 10m from surface, de
Slide 9: Koppamurra Next Steps
Australian Rare Earths Corporate Presentation April 2023 For personal use only KOPPAMURRA NEXT STEPS Establishing a valuable potential source of critical rare earths in a Tier-1 location • Continuing our early and active engagement with local communities, their support is key to building a successfu
Slide 10: Koppamurra Metallurgy
Australian Rare Earths Corporate Presentation April 2023 For personal use only KOPPAMURRA METALLURGY Process development in collaboration with world experts • Successful pilot scale production, at ambient temperatures and pressures, of a Mixed Rare Earth Carbonate (MREC), a first for an Australian i
Slide 11: Ionic Clay Hosted REE Deposits
Australian Rare Earths Corporate Presentation April 2023 For personal use only Ionic Clay Hosted REE Deposits Ionic clays Hard rock • Historically mined in China, now in Myanmar, but • China dominates but mines in production (limited) Location resources are depleting and under consideration in Austr
Slide 12: Successful Trial Mining & Rehabilitation Program
Australian Rare Earths Corporate Presentation April 2023 For personal use only SUCCESSFUL TRIAL MINING & REHABILITATION PROGRAM Commitment to continuous land rehabilitation • Innovative trial mining program successfully undertaken in April-June 2022 • Opportunity to confirm continuous land rehabilit
Slide 13: Community and Land
Australian Rare Earths Corporate Presentation April 2023 For personal use only COMMUNITY AND LAND AR3 is an active and responsible member of the community ✔ Naracoorte Office Opening ✔ Full-time local Personnel • Building an open and collaborative community relationship underpins AR3’s approach to e
Slide 14: Why Australian Rare Earths?
Australian Rare Earths Corporate Presentation April 2023 For personal use only WHY AUSTRALIAN RARE EARTHS? THE KOPPAMURRA PROJECT • Large resource with exceptional potential for multigenerational growth • Substantial market opportunity driven by global decarbonization efforts • Endowment of all four
Slide 15: For personal use only
E EARTHS ASX: AR3 Securing Australia’s rare earths for a diversified sustainable future
Slide 16: Supplementary Information
Australian Rare Earths Corporate Presentation April 2023 For personal use only SUPPLEMENTARY INFORMATION 16
Slide 17: Separated Rare Earths Demand and Supply
Australian Rare Earths Corporate Presentation April 2023 For personal use only SEPARATED RARE EARTHS DEMAND AND SUPPLY Rare Earth demand • 2022 Total Demand: 260-280 ktpa REO, growing at 6-8% p.a • 2022 Magnet Rare Earths Demand: 70-80 ktpa, growing at 8-10% p.a. • 2025/26 Total Demand: 320-350 ktpa
Slide 18: 2020 to 2022 Chinese Rare Earth Production Quotas
Australian Rare Earths Corporate Presentation April 2023 For personal use only 2020 to 2022 CHINESE RARE EARTH PRODUCTION QUOTAS* 2020 TOTAL 2021 TOTAL 2022 TOTAL TPA REO TPA REO TPA REO GROUP SEPARATION SEPARATION SEPARATION MINING MINING MINING & SMELTING & SMELTING & SMELTING NORTHERN RARE EARTH
Slide 19: Impact of China's Vertical Integration of Rare Earth Supply Chain
Australian Rare Earths Corporate Presentation April 2023 For personal use only IMPACT OF CHINA’S VERTICAL INTEGRATION OF RARE EARTH SUPPLY CHAIN 100% ~$40 billion China is becoming more TODAY ??? and more dependent upon Myanmar for ??? heavy rare earth (HREE) % Chinese market share concentrates In e
Slide 20: The Rare Earths Supply Chain
Australian Rare Earths Corporate Presentation April 2023 For personal use only THE RARE EARTHs SUPPLY CHAIN China and Myanmar dominate the supply chain, including majority of heavy rare earth production and end uses • Minerals containing Neodymium and Praseodymium EU Critical Raw Materials list 2020
Slide 21: The Rare Earth Supply Chain
Australian Rare Earths Corporate Presentation April 2023 For personal use only THE RARE EARTH SUPPLY CHAIN China and Myanmar dominate the supply chain, including majority of heavy rare earth production and end uses Historical rare earth mine production by country2 Downstream supply chain also domina
Slide 22: Adamas Intelligence Forecasts
Australian Rare Earths Corporate Presentation April 2023 For personal use only ADAMAS INTELLIGENCE FORECASTS Supply deficits across all magnet REO’s is expected to support price accretion for the remainder of this decade NdPr demand-supply balance (LHS) vs price (RHS) Dy demand-supply balance (LHS)
Slide 23: Koppamurra is a unique & strategically significant asset
Koppamurra is a unique & strategically significant asset The only confirmed ionic adsorption clay Resource in a Tier-1 mining jurisdiction For personal use only Key Koppamurra Notable international projects Unproven IAC projects 23
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