Ionic Rare Earths Limited · ASX:IXR
Ionic Rare Earths — Investor Presentation (August 2021)
43 slides from Ionic Rare Earths's investor presentation, Aug 17, 2021
Slide 1: Building Secure Critical and Heavy Rare Earths Capacity
For personal use only Building Secure Critical and Heavy Rare Earths Capacity Long-term supply potential of the Critical Raw Materials required to help transition towards Carbon Neutrality IONICRE.COM.AU 17 AUGUST 2021
Slide 2: Cautionary Statement
Cautionary Statement For personal use only Important Notice and Disclaimer This presentation should be considered in its entirety. If you do not understand the material contained in this presentation, you should consult your professional advisors. The sole purpose of this presentation is to provide
Slide 3: IonicRE Corporate Snapshot
IonicRE Corporate Snapshot For personal use only STRATEGIC VALUE DRIVEN BY THE UNIQUE CREO/HREO BASKET CAPITAL STRUCTURE (as @ 13/08/2021) Ionic Rare Earths (ASX: IXR) $0.070 450 Shares Outstanding 3,392,399,514 Volume Share Price Total Options Outstanding 195,000,000 400 (exercisable at 1.8 to 6.0
Slide 4: The Time is Now
The Time is Now For personal use only DEVELOPING A SECURE, TRACEABLE, CRITICAL AND HEAVY RARE EARTH SUPPLY CHAIN TO FACILITATE CARBON NEUTRALITY The Mine – Makuutu The Refinery – Secure Supply The Basket – High Margin Increasing Demand, Reducing Supply – Becoming Urgent Makuutu is one of less than a
Slide 5: Makuutu Rare Earths Project
For personal use only Makuutu Rare Earths Project Developing a Sustainable, Long-Life, CREO/HREO Supply IONIC RARE EARTHS PAGE 5
Slide 6: Harnessing the wide appeal of the Makuutu Basket
Harnessing the wide appeal of the Makuutu Basket For personal use only MAKUUTU PROVIDES A UNIQUELY BALANCED BASKET WITH 73% CRITICAL AND HEAVY RARE EARTHS Scoping Study confirms robust Makuutu is unique and receiving Infrastructure in close proximity Potential for significant economics for Base Case
Slide 7: Makuutu Rare Earth Project Highlights
Makuutu Rare Earth Project Highlights For personal use only STRATEGIC VALUE DERIVED BY THE UNIQUE CREO/HREO DOMINANT BASKET MAKUUTU BASKET Ionic Adsorption Clay (IAC) deposit mineralisation is highly desirable given it HIGH VALUE CREO / HREO PRODUCT produces a balanced REO basket dominant in CREO &
Slide 8: Tier-One In-Country Infrastructure already there!
Tier-One In-Country Infrastructure already there! For personal use only EXCELLENT LOCAL INFRASTRUCTURE SUPPORTS LOW CAPEX DEVELOPMENT LOGISTICS Approximately 10 km from Highway 109, connecting Makuutu to both capital city Kampala and Port of Mombasa, Kenya Approximately 20 km from rail line connecti
Slide 9: Excellent local infrastructure supports low CAPEX development
Excellent local infrastructure supports low CAPEX development For personal use only Clockwise, top left: Isimba hydroelectric dam with 183 MW installed capacity at Jinja; Uganda’s excellent hydro-power transmission infrastructure, with 132 kV power lines running through tenements and immediately adj
Slide 10: Ionic Adsorption Clay Mineral Resource Estimate with Upside
315 Mt Ionic Adsorption Clay (IAC) Mineral Resource Estimate with Upside For personal use only FURTHER IAC TARGETS IDENTIFIED AT MAKUUTU 279 drill holes (4,754 metres) completed between October 2019 and October 2020 defining JORC MRE1 of 315 Mt @ 650 ppm Total Rare Earths Oxide (TREO), at a cut-off
Slide 11: Makuutu and Critical Raw Materials 2020
Makuutu and Critical Raw Materials 2020 For personal use only MAKUUTU BASKET CONTAINS HIGH RANKED CRMS IDENTIFIED IN 2020 EU STUDY REQUIRED TO ACHIEVE CARBON NEUTRALITY Secure and sustainable supply of both primary Economic Importance vs Supply Risk results for 2020 criticality assessment1 and secon
Slide 12: REO Pricing Basis
REO Pricing Basis For personal use only MAKUUTU’S STRATEGIC IMPORTANCE WILL INCREASE LONG TERM “When peering into the outlook for the next decade to Where are the HREO going to come from beyond 2030? come, it becomes quickly apparent that the rapid 95% of current world supply of HREO supplied from C
Slide 13: Makuutu CREO & HREO Dominant Product Basket Value
Makuutu CREO & HREO Dominant Product Basket Value For personal use only REO PRICING TO 2030…. MAKUUTU PRODUCT BASKET1, US$/KG Makuutu’s basket value which is 73% CREO + HREO dominant $250 $200 Forecast to experience substantial appreciation over next 10 years Declining IAC reserves and production fr
Slide 14: ESG initiatives 'front and centre' at Makuutu
ESG initiatives ‘front and centre’ at Makuutu For personal use only ENVIRONMENT, SOCIAL AND GOVERNANCE (ESG) FRAMEWORK IN DEVELOPMENT TO BUILD LASTING LEGACY Environmental and Social Impact Rehabilitation to consider Community Support Programs Community socio-economic Assessment (ESIA) in progress d
Slide 15: Investment in Uganda – The Pearl of Africa
Investment in Uganda – The Pearl of Africa For personal use only MAJOR INTERNATIONAL INVESTMENT INTO UGANDA IS UNDERWAY • Ugandan law allows for 100% foreign-owned businesses, and foreign businesses are allowed to partner with Ugandans without restrictions. • The US$10B Lake Albert Oil Project (Tota
Slide 16: Independent REE Separation and Refining Capacity
For personal use only Independent REE Separation and Refining Capacity Mine to Market HREO initiative from long-life supply at Makuutu IONIC RARE EARTHS PAGE 16
Slide 17: China Dominates Global REE Separation & Refining Capacity
China Dominates Global REE Separation & Refining Capacity For personal use only ALL HEAVY RARE EARTH ROADS LEAD TO ….. CHINA Global HREO separation and refining capacity operated and NPM Silmet controlled by China1 Estonia Light Rare Earth Separation and Refining Northern Rare Earths Small capacity
Slide 18: Standalone Refinery to unlock value of balanced basket REOs
Standalone Refinery to unlock value of balanced basket REOs For personal use only DEVELOPMENT OF REFINERY TO PRODUCE SEPARATED REOs OF INREASING DEMAND AND REO Production • Rare earth separation and refinery facility developed to take Rare Earth Capacity1 Major Applications and Uses Element advantag
Slide 19: Makuutu is Unique – its Basket is the Key
Makuutu is Unique – it’s Basket is the Key For personal use only INITIAL REFINERY PRODUCTS Nd, Pr, Dy, Tb, Y AND Sc CONTAIN > 93% OF POTENTIAL REVENUE Makuutu Basket Volume Makuutu Basket Value La2O3; 0.1% Y2O3; 7.2% CeO2; 0.1% La2O3; 13.5% Lu2O3; 1.8% Pr6O11; 7.7% Yb2O3; 0.2% Y2O3; 25.4% Tm2O3; 2.2
Slide 20: Makuutu Basket ~ 43% Magnet REOs required for Permanent Magnet drives for EVs
For personal use only Makuutu Basket ~ 43% Magnet REOs required for Permanent Magnet drives for EVs IONIC RARE EARTHS PAGE 20
Slide 21: Electric Vehicles – Driven by NdPr (and DyTb)
Electric Vehicles – Driven by NdPr (and DyTb) For personal use only Nd, Pr, Dy & Tb EXPECTED TO BE IN DEFICIT BY 2027 • Worldwide EV demand driving insatiable appetite for NdPr • NdFeB permanent magnets (PM) are essential for producing light, compact and high efficiency traction motors. Approx. 28-3
Slide 22: Makuutu Basket – Producing Dy and Tb required for offshore wind turbines
For personal use only Makuutu Basket – Producing Dy and Tb required for offshore wind turbines IONIC RARE EARTHS PAGE 22
Slide 23: Land Constrained – Go Offshore
Land Constrained – Go Offshore For personal use only COUNTRIES ADOPT OFFSHORE WIND TURBINES TO REACH CO2 TARGETS Current world offshore wind turbine The International Renewable Energy Agency capacity is 36 GW (IRENA) also has a 1TW ambition by 2050. Argus1 estimates an additional 200 GW of US DOE an
Slide 24: Without DyTb – No Offshore Wind Turbine Capacity
Without DyTb – No Offshore Wind Turbine Capacity For personal use only THE BASICS – HOW MUCH REO IS REQUIRED PER MW OF OFFSHORE TURBINE CAPACITY? Rare-earth elements and boron (B) are essential for turbine designs Most direct-drive turbines, but also to different extents certain that employ permanen
Slide 25: Makuutu & Offshore Wind Turbine Capacity
Makuutu & Offshore Wind Turbine Capacity For personal use only MAGNET REO – SUPPLY FAILING DEMAND → ‘ESCAPE VELOCITY’ BY 2027 • Forecast offshore capacity increase by 200 GW by 20301,2 GLOBAL OFFSHORE WIND TURBINE CAPACITY • 2020 global offshore wind turbine capacity of 36 GW, with 2020 installation
Slide 26: Key HREO Applications without Substitute – New Supply Required
Key HREO Applications without Substitute – New Supply Required For personal use only HREO USED IN HIGH END FOR NICHE APPLICATIONS – NO SUBSTITUTION FOR REOS IN SPECIFIC APPLICATIONS MRI Machine PET Scan NdFeB and SmCo permanent magnets Erbium is a key input into enabling 5G technology • IAC mines in
Slide 27: Makuutu has Strategic Appeal for Defence Applications
For personal use only Makuutu has Strategic Appeal for Defence Applications IONIC RARE EARTHS PAGE 27
Slide 28: HREO & CREO crucial in Defence Applications
HREO & CREO crucial in Defence Applications For personal use only DEFENCE HREO SUPPLY CHAIN – MAKUUTU POTENTIALLY SUPPLIES IT ALL US Navy Virginia Class Submarine • Numerous HREO & CREO materials are used in defence applications in the engines, disk drive motors, radar of the aircraft, fin actuators
Slide 29: HREO & CREO crucial in Defence Applications
HREO & CREO crucial in Defence Applications For personal use only DEFENCE HREO SUPPLY CHAIN – MAKUUTU POTENTIALLY SUPPLIES IT ALL, PROVIDING SECURE SOURCE OPTION US Navy Virginia Class Submarine Makuutu Basket ~73% used in Defence Applications La2O3 13.5% Y2O3 25.4% Y2O3 used in F-35 comes from IACs
Slide 30: Scandium – A metal of the future to light-weight aerospace and automotive transportation
For personal use only Scandium – A metal of the future to light-weight aerospace and automotive transportation IONIC RARE EARTHS PAGE 30
Slide 31: Scandium Market Overview
Scandium Market Overview For personal use only AN EMERGING STRATEGIC METAL WITH LARGE POTENTIAL MARKETS IN THE GLOBAL TRANSPORT SECTOR AND AEROSPACE • The Makuutu Rare Earths Project is positioning itself to become a key player in the Sc 2O3 market via low cost production, planning to initially prod
Slide 32: Scandium Market Overview
Scandium Market Overview For personal use only The need for light-weighting solutions has dramatically increased the adoption of aluminium alloys in transportation. Stricter efficiency standards, the advent of the electric vehicle and the emergence of new sectors are accelerating uptake, generating
Slide 33: Makuutu is one of the largest global Scandium resources… and growing
Makuutu is one of the largest global Scandium resources… and growing For personal use only 3rd LARGEST SCANDIUM RESOURCE REPORTED Kovdor (EuroChem) Dalur (Rosatom) Deposit Metals: U, Sc Deposit Metals: FeO, Phosphate Scandium Resource: unknown Scandium Resource: unknown Project Status: Producing Pro
Slide 34: Additional Slides
For personal use only ADDITIONAL SLIDES IONIC RARE EARTHS PAGE 34
Slide 35: Makuutu Investment Highlights
Makuutu Investment Highlights For personal use only MAKUUTU BASKET STRATEGIC VALUE DRIVEN BY THE UNIQUE CREO/HREO DOMINANT BASKET HIGH VALUE CREO / HREO PRODUCT La2O3 Highly attractive Scoping Study (11 year Base Case) economic parameters1 ; 13.5% Y2O3 25.4% Post tax long term free cash flow US$766
Slide 36: REE Hard Rock Mining/Processing vs IAC Mining/Processing
REE Hard Rock Mining/Processing vs IAC Mining/Processing For personal use only Ionic Adsorption Clay (IAC) deposit mineralisation is highly desirable given it produces a balanced REO basket dominant in CREO & HREO with higher value and broader appeal Near surface IAC mineralisation translates to low
Slide 37: The REE Basket Problem – the Solution requires 'Balance'
The REE Basket Problem – the Solution requires ‘Balance’ For personal use only Ionic Adsorption Clay (IAC) deposit mineralisation is highly desirable given it produces a balanced REO basket dominant in CREO & HREO with higher value and broader appeal Hard rock rare earth mines typically >90-95% LREE
Slide 38: Rare Earth Oxide Production Chain – Lower Capex IAC Path
Rare Earth Oxide Production Chain – Lower Capex IAC Path For personal use only HARD ROCK LREE PROCESS ROUTE COMPLEX, CAPITAL INTENSIVE, LARGE IMPURITY LOAD TO REFINED RARE EARTH OXIDE REE Calcined REE Pregnant Mixed Rare Rare Earth Ore Concentrate Concentrate Leach Solution Earth Carbonate Oxide 0.5
Slide 39: Makuutu Basket is Balanced, CREO+HREO Dominant and High Value
Makuutu Basket is Balanced, CREO+HREO Dominant and High Value For personal use only Australian Hastings Ionic Rare Lynas Rare Arafura Peak Pensana Rare Northern Company MP Materials2 Strategic Technology Earths Earths1 Resources3 Resources6 Earths7 Minerals8 Materials4 Metals5 REO Pricing Ionic Adso
Slide 40: Strategic Partnership Activity
Strategic Partnership Activity For personal use only A RARE EARTH BASKET WITH ‘BALANCED’ APPEAL • IAC balanced basket appeal as one of only two global IACs of scale in development • IonicRE in April signed a non-binding MOU1 with China Rare Earths Jiangsu, a subsidiary of Chinalco; • To strategicall
Slide 41: Makuutu Timeline to Production
Makuutu Timeline to Production For personal use only ACCELERATING MAKUUTU TOWARDS PRODUCTION IN 2024 2021 2022 2023 2024 ACTIVITY Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Resource Drilling (Phase 4) Metallurgy Testwork MRE Update ESIA BFS Landowner Agreements Demonstration Plant Funding Agreements Mining
Slide 42: IonicRE Activity over the remainder of 2021
IonicRE Activity over the remainder of 2021 For personal use only STEADY WORK PROGRAM UNDERWAY AT MAKUUTU • Drilling progressing with approximately 220 holes (3,600 metres) completed to date of 5,700 metre Phase 4 infil drilling program • Pending confirmation of application TN03555 for conversion of
Slide 43: Ionic Rare Earths Limited
For personal use only Ionic Rare Earths Limited Level 1, 34 Colin Street T +61 8 9481 2555 West Perth WA 6005 Australia F +61 8 9485 1290 www.ionicre.com.au IONIC RARE EARTHS PAGE 43
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