Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Developing Northern Australia Conference 2021
36 slides from Arafura Rare Earths's conference presentation, Aug 17, 2021
Slide 1: ASX Announcement: Developing Northern Australia Presentation
ASX ANNOUNCEMENT DEVELOPING NORTHERN AUSTRALIA PRESENTATION 17 August 2021 For personal use only Arafura Resources Limited (ASX:ARU) (“Arafura” or the “Company”) is pleased to attach a copy of its presentation delivered by Managing Director, Mr Gavin Locker, at the Developing Northern Australia Conf
Slide 2: Nolans Project: A critical opportunity for Northern Australia
17/08/2021 Nolans Project A critical opportunity For personal use only for Northern Australia 17 August 2021 (ASX:ARU) 1
Slide 3: Disclaimer
17/08/2021 Disclaimer For personal use only This presentation has been prepared by Arafura Resources Limited (Arafura, Arafura Resources or the Company) and is of a summary form only and therefore contains general background information which may not be complete. It should be read in conjunction wit
Slide 4: World in Transition
17/08/2021 A CO2 Two great revolutions are underway: digitalisation and decarbonisation World in For personal use only Transition North Australia is poised to benefit: resources, energy, expertise, proximity to markets, environmental standards Central to both revolutions are critical minerals such a
Slide 5: The Nolans Project
17/08/2021 The Nolans Project Rare Earths contains all the Rare Earths but is particularly For personal use only Rare Earths are Critical Minerals. enriched in the ‘Magnet They are essential to the digital and Feed’ Rare Earths NdPr energy transformation and economic wellbeing of the world’s major a
Slide 6: A Vital Cog in the Electric Vehicle Revolution
17/08/2021 Rare Earths kt Total mineral demand from new EV sales by scenario A Vital Cog in the Electric Vehicle 14000 For personal use only Revolution 12000 2020 Stated Policies Scenario EV market growth is exponential: 10 to 10000 Sustainable Development Scenario 40 times in the next 20 years 8000
Slide 7: Mineral demand growth from new EV sales by scenario
17/08/2021 Mineral demand growth from new EV sales by scenario, 2040 compared to 2020 For personal use only 50 Rare Earth 45 2040 | Stated Policies Scenario Elements 40 2040 | Sustainable Development Scenario 16 35 15 x 14 30 2020 = 1 25 12 2020 growth 20 10 15 8 10 5 6 0 4 6x Lithium Nickel Cobalt
Slide 8: Nolans Project Overview
17/08/2021 Nolans For personal use only Project Overview (ASX:ARU) 7
Slide 9: Key Facts
17/08/2021 Key Facts Nolans is a shovel-ready world class NdPr project For personal use only NdPr is the key input for high performance NdFeB permanent magnets Advanced manufacturing onsite – Ore to oxide at Single Site – NdPr is central to many clean energy First of its kind in Australia applicatio
Slide 10: Close to existing key infrastructure
17/08/2021 Close to existing key infrastructure For personal use only Stuart Highway 10 km east Amadeus natural gas pipeline- adjacent to project site Water supply 25km southwest Tailings and process wastes at site Alice Springs railyard, airport and other services 135km south (ASX:ARU) 9
Slide 11: Shovel Ready: Regulatory, Technical, Commercial
17/08/2021 Regulatory Nolans Federal & NT Environmental Approvals secured NdPr Government and Minister support for senior debt facility For personal use only Shovel Security of Tenure & Social License to Operate Native Title Agreement Ready Mineral License Granted Federal Major Project Status Indige
Slide 12: Shovel Ready for Rising Rare Earth Demand
17/08/2021 Shovel Ready for Rising Rare Earth Demand Nolans Key Development Milestones* For personal use only *Milestone targets are indicative and subject to change and are contingent upon funding, offtake activities and general market conditions 1. FID and First Production are both subject to outc
Slide 13: Ore to Oxide at Single Site
17/08/2021 Ore to Oxide at Single Site For personal use only Nolans is the only NdPr focused project in Australia that plans to mine and process ore to oxide at a single site. Nolans aims to be a non-Chinese supplier of choice for sustainably mined NdPr oxide. All environmental approvals have been s
Slide 14: ESG - Current activities and initiatives
18/05/2021 ESG - Current activities and initiatives For personal use only “Arafura’s ESG commitment is to be a trusted global leader and supplier of choice for sustainably mined and processed rare earth products, helping our customers deliver clean and efficient technologies. We are committed to del
Slide 15: Offtake Strategy
17/08/2021 Offtake Strategy For personal use only Targeting NdPr users not aligned with Made in China 2025 strategy Progressing Offtake agreements with customers seeking supply security with a sustainable NdPr producer Prices rising materially as supply tightens Arafura is in discussions with 9 part
Slide 16: Critical Minerals Supply – a Global Issue
18/05/2021 Critical Minerals Supply – a For personal use only Global Issue (ASX:ARU) 15
Slide 17: NdPr Market Opportunity
18/05/2021 NdPr Market Opportunity For personal use only Automotive sector is forecast to consume DEMAND nearly 50% of NdFeB supply Supply gap is growing at a cumulative annual growth rate (CAGR) of 8% 2030 forecast assumes ~34 million EVs 2021 demand is forecast to increase by 14% Market analysts f
Slide 18: NdPr Oxide Output & Price EXW China
18/05/2021 NdPr Oxide Output & Price EXW China NdPr Price Rise For personal use only Chinese inventory stockpiles down by ~60% since mid-2020 Chinese producers near full capacity Source: Lynas Rare Earth (LYC output), BAIINFO (NdPr oxide production), Asian Metals (NdPr Price) Supply chain issues hig
Slide 19: Supply expansion challenge
18/05/2021 Supply expansion challenge Tighter environmental and regulatory controls For personal use only 1 in China have resulted in production volumes contracting China Northern Rare Earths (largest producer) Source: Baiinfo and Argus 2 will increase production but will require plant expansion to
Slide 20: Local Processing: More Jobs, Secure Supply Chains
17/08/2021 Local Processing: More Jobs, Secure Supply Chains For personal use only 1. Mine 3. RE Separation 5. NdPr Metal 6. NdFeB Alloy/ 7. End User/ 2. RE Extraction 4. NdPr Oxide (Conversion) Magnet Maker Manufacturer Non-China Value Chain China Value IMPORT & IMPORT Chain IMPORT TOLL PROCESS Imp
Slide 21: What's in it for the NT?
17/08/2021 What’s in it for For personal use only the NT? (ASX:ARU) 20
Slide 22: Territory benefits plan – Federal & NT approvals
17/08/2021 To date Territory benefits plan – Federal & NT approvals Arafura has: For personal use only In excess of $50m of on ground exploration. Exploration agreement Discovery of new aquifer with traditional owners $3.5m water exploration & allowed permanent water provides funds for Indigenous en
Slide 23: Nolans National Benefits
17/08/2021 Nolans National Benefits For personal use only INCLUDING Nolans creates a very OF WHICH significant benefit for the Territory in terms of value added to the economy, boost to EQUATING TO A incomes of Territorians and job creation Nolans returns a benefit to All values expressed in real 20
Slide 24: Job Creation during Construction & Operations
17/08/2021 Job Creation during Construction & Operations For personal use only Territory Benefit Plan 30-month construction Minimum 38-year approved period operational life • Local business involvement and • $1 billion initial capital spend • $225 million annual spend support • Peak workforce of 620
Slide 25: Socio-Economic Impact Assessment (ESIA)
17/08/2021 Socio-Economic An agreement has been signed with the three native title holder Impact Assessment groups over the Project through For personal use only the Central Land Council (CLC) (ESIA) Local and Indigenous Procurement Plan in place Socio-Economic Impact Cultural Cultural and environme
Slide 26: The Territory's Opportunity – Beyond Nolans
17/08/2021 The Territory’s Opportunity – Beyond Nolans For personal use only Ore Intermediate Oxide Metal Concentrate BUSINESS OPPORTUNITY Multiple rare earth-rich NdPr and heavy rare Rare earth metals Rare earth metals for ore concentrates from earth processing hub at manufacturing in Darwin export
Slide 27: Appendices
18/05/2021 Appendices For personal use only (ASX:ARU) 26
Slide 28: Arafura's Debt Strategy
17/08/2021 Arafura’s Debt Strategy Leverages Global Funding Strategy Focus on Critical Materials For personal use only Global Government Initiatives Supply Chains Creating Momentum ➔ Morrison launches the Resources Technology Conditional letters of support1 for senior debt facility: and Critical Min
Slide 29: Nolans Project Highlights
17/08/2021 Nolans Project Highlights For personal use only $ Long life asset Extensive & Definitive Only single site Low-cost Production of enriched in successful Feasibility Australian NdPr operation NdPr oxide NdPr large-scale pilot Study focused project aligned with completed completed, with all
Slide 30: Attractive Project Economics
18/05/2021 Attractive Project Economics Definitive Feasibility Study Mining and Production (DFS) update released in For personal use only Mine Life (years) 38 NdPr Oxide (tpa) 4,440 May 2021 SEG/HRE Oxide (tpa) 474 Phosphoric Acid (tpa 54% P2O5 MGA) 144,393 Post-tax NPV8 of A$1.4 billion and IRR of
Slide 31: Long Life Asset
18/05/2021 Long Life Asset RESOURCES TONNES (m) RARE EARTHS TREO % PHOSPHATE P2O5 % NdPr ENRICHMENT % NdPr rich & open at depth For personal use only 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 As announced on 7 June 2017. 1% TREO cut-off grade. Num
Slide 32: Rehabilitation & Waste Management
18/05/2021 Rehabilitation & Environmental Approval and Project Costing includes all costs for Waste Management System and Rehabilitation. Waste Management For personal use only Waste rock dumps designed to “encapsulate” naturally occurring radioactive materials (NORM) rock at mine site Mine area sur
Slide 33: ESG/Sustainability Program Plan
18/05/2021 ESG/Sustainability Program Plan For personal use only Ambition Prioritisation Action Arafura Sustainability Goal 1. Mapped the Arafura Signatory of the UN Global stakeholder mix Compact “Our goal is to be a trusted global leader and supplier of choice for 2. Materiality assessment assessi
Slide 34: Technology Program Complete
18/05/2021 Technology Program Complete For personal use only Flowsheet Pilot PHASE PHASE PHASE PHASE PHASE PHASE 1 2 3 4 5+6 + 7 BENEFICATION PHOSPHATE BULK ACID RARE EARTH RARE EARTH EXTRACTION PRE-LEACH BAKE PROCESSING SEPARATION 5,000kg high- Merchant grade 2,000kg pre-leach 4,100kg rare earth >9
Slide 35: Nolans Supply Chain Model
TRACEABLE 18/05/2021 Nolans Supply BLOCKCHAIN NETWORK Chain Model Mine RE Extraction For personal use only RE Separation Sustainable producer of NdPr to align (Australia) Toll Processing to “green procurement” strategy Contract NdPr Oxide Offtake Model proposes ‘Toll Processing’ of Metal Converter m
Slide 36: Contact Information
18/05/2021 Contact Information For personal use only Level 6, 432 Murray St, Perth WA 6000 34/119 Reichardt Rd, Winnellie NT 0820 +61 8 6370 2800 arafura@arultd.com www.arultd.com (ASX:ARU) 35
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