Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Noosa Mining & Exploration Investor Conference 2018
25 slides from Arafura Rare Earths's conference presentation, Jul 19, 2018
Slide 1: Arafura Resources Limited
For personal use only Arafura Resources Limited Up and coming supplier of NdPr to permanent magnets used in the growing clean energy industry July 2018 Noosa Mining & Exploration Investor Conference
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: Company Snapshot
Company Snapshot 3 For personal use only • ASX listed company developing the Nolans Rare Earths Project in ASX Code ARU the Northern Territory, a long-life mining and chemical processing Share Price (16-Jul-18) A$0.094 operation Issued Shares 575.8m • Arafura has the capability of meeting 5-10% of g
Slide 4: NdPr Market Update
For personal use only NdPr Market Update Arafura Resources Limited (ASX:ARU) July 2018
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 Oxide 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
Slide 6: NdFeB Magnet Vital To Automotive Market
NdFeB Magnet Vital To Automotive Market 6 For personal use only 25,000 tonnes NdFeB magnets used in 2016 automotive market growing at 9% CAGR (total market 135,000 tonnes) EVs and hybrids represent additional growth through Permanent Magnet Synchronous Motors (PMSM) PMSM is dominant drive train tech
Slide 7: NdPr Market Growth Driven By NdFeB Magnets
NdPr Market Growth Driven By NdFeB Magnets 7 For personal use only NdPr Oxide Supply & Demand • EV sales 1.2 million in 2017 80000 growing to 1.6 million in 2018; estimated global 70000 sales of 25 million by 2025 (1) 60000 • NdFeB magnet growth at 50000 9% CAGR NdPr Oxide Tonnes 40000 • Additional
Slide 8: Nolans Project
For personal use only Nolans Project Arafura Resources Limited (ASX:ARU) July 2018
Slide 9: Project Configuration
Project Configuration 9 For personal use only Arafura Resources Limited (ASX:ARU) July 2018
Slide 10: Close To Key Infrastructure
Close To Key Infrastructure 10 For personal use only • Stuart Highway – 10 km east • Alice Springs railyard, airport and other services – 135 km south • Amadeus natural gas pipeline – adjacent to project site • Water supply – 30 km south • Tailings and process wastes remain at site Arafura Resources
Slide 11: Flowsheet Piloting
Flowsheet Piloting 11 For personal use only Beneficiation Pilot Plant Bulk Pre-Leach Pilot Plant • Program reduces execution risk by addressing all key engineering and operational considerations prior to commissioning of the commercial facility • Draws on independent expert advice from specialist co
Slide 12: Definitive Feasibility Study
Definitive Feasibility Study 12 For personal use only • Process design criteria, PFDs and mechanical equipment list issued for use for the DFS • Underway Director appointment: Mark Southey, • Layouts of process plant previously WorleyParsons Group Managing Director for Minerals, Metals and Chemicals
Slide 13: Project Metrics
Project Metrics 13 For personal use only • Ultra competitive operating costs US$6.23/kg TREO or US$24.38/kg NdPr oxide – lowest amongst peers • Phosphoric acid recovered to reduce commodity risk • High rare earths recovery • NdPr oxide price US$53.00/kg Refer Arafura ASX release 7 June 2017 for addi
Slide 14: Project Funding Strategy
Project Funding Strategy 14 For personal use only • Advancement of environmental approval critical enabler for engagement with offtakers, financiers and Export Credit Agencies (ECA) • ECAs are key to providing government-backed funding and guarantees, leveraged against the strategic link to NdFeB ma
Slide 15: Timeline & Targets
Timeline & Targets 15 For personal use only 2018 targets include: • Advancing NdPr offtake arrangements • Completing the DFS and definition stage engineering • Engaging with strategic partners for capital equipment procurement and project funding Arafura Resources Limited (ASX:ARU) July 2018
Slide 16: Summary
For personal use only Summary Arafura Resources Limited (ASX:ARU) July 2018
Slide 17: Why Arafura?
Why Arafura? 17 For personal use only Attribute Arafura High-growth and high-value NdFeB permanent magnet focus ✓ NdPr production planned to coincide with projected supply gap ✓ ✓ Low production cost to remain competitive in a cyclical downturn Located in a jurisdiction with low geopolitical risk an
Slide 18: Contact
For personal use only Contact: Level 3, 263 Adelaide Terrace Perth, WA, 6000, Australia T: +61 8 6210 7666 E: arafura@arultd.com July 2018 Noosa Mining & Exploration Investor Conference
Slide 19: Appendices
For personal use only Appendices Arafura Resources Limited (ASX:ARU) July 2018
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. “Nd
Slide 21: Appendix B: Process Flowsheet
Appendix B: Process Flowsheet 21 For personal use only Where indicated, process flows are being used in the DFS. TREO and P 2O5 grades are from the pilot program. Arafura Resources Limited (ASX:ARU) July 2018
Slide 22: Appendix C: Established Markets & Growing Applications
Appendix C: Established Markets & Growing Applications 22 For personal use only Source: Adamas Intelligence, Arnold Magnetic Technologies, Japanese industry participants, Roskill Arafura Resources Limited (ASX:ARU) July 2018
Slide 23: Appendix D: Emerging Demand Dynamic – China 2025 Strategy
Appendix D: Emerging Demand Dynamic – China 2025 Strategy 23 For personal use only • China’s domestic NdPr consumption will increase as it pursues clean energy objectives and global leadership in EV manufacturing • Expect to see Chinese investment in producers operating outside the quota, to bring t
Slide 24: Appendix E: Board
Appendix E: Board 27 For personal use only IAN KOWALICK NON-EXECUTIVE CHAIRMAN TERRY GROSE NON-EXECUTIVE DIRECTOR Ian Kowalick has qualifications in science, engineering, economics, and finance. From 1995 to 2000, he held the most Terry Grose has a strong commercial senior management position in the
Slide 25: Appendix F: Management
Appendix F: Management 28 For personal use only PETER SHERRINGTON CHIEF FINANCIAL OFFICER & COMPANY SECRETARY RICHARD BRESCIANINI He commenced employment with Arafura in 2008 as GENERAL MANAGER EXPLORATION & Commercial Manager and was appointed Chief Financial DEVELOPMENT Officer in July 2013. He ha
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