Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Shareholder Meeting (November 2012)
22 slides from Arafura Rare Earths's shareholder meeting presentation, Nov 30, 2012
Slide 1: Arafura Resources Limited Annual General Meeting
For personal use only Arafura Resources Limited Annual General Meeting 30 November 2012
Slide 2: Disclaimer – Important Notice
Disclaimer Important Notice For personal use only This presentation contains certain statements which may constitute “forward-looking statements”. Such statements are only expectations or beliefs and are subject to inherent risks and uncertainties which could cause actual values, results or performa
Slide 3: Agenda
Agenda For personal use only 1. Chairman’s Address 2. Formal Business 3. CEO’s Report 4. Questions and Answers Page 3
Slide 4: Mr Ian Kowalick, Chairman
For personal use only Mr Ian Kowalick Chairman Page 4
Slide 5: Formal Business
For personal use only Formal Business Page 5
Slide 6: Resolutions
Resolutions For personal use only Accounts and Reports – receive and consider the consolidated financial statements of the Company and its controlled entities for the year ended 30 June 2012. Resolutions 1 Withdrawn 2 Re-election of Shasha Lu as Director 3 Election of Ian Kowalick as Director 4 Remu
Slide 7: Mr Chris Tonkin, Chief Executive Officer
For personal use only Mr Chris Tonkin Chief Executive Officer Page 7
Slide 8: An Emerging Rare Earths Producer
An Emerging Rare Earths Producer For personal use only Arafura Resources is an emerging rare earths producer with an Australian development project – the Nolans Project ASX Code ARU Shares on offer 441 million Options 11.5 million Market Cap@20c $88.0 million 1-year range 14 - 53 cents Cash at 30/11
Slide 9: Nolans Bore – REO composition
Nolans Bore – REO composition For personal use only Nolans Bore – REO Composition The global demand for Clean Energy Technologies, in Forecast REO particular magnets, batteries REO Nolans Bore production tonnes p.a. and energy efficient lighting is rapidly increasing Cerium Oxide 48.73% 9,744 Neodym
Slide 10: US DoE identifies critical need for Dy, Nd, Tb, Eu, Y
US DoE identifies critical need for Dy, Nd, Tb, Eu, Y For personal use only Critical REOs strongly represented in Nolans Bore REO mix Source: US Department of Energy – Critical Materials Strategy Summary, 2010 Page 10
Slide 11: 'Magnet feed' (Nd-Pr-Dy) – peer comparison
‘Magnet feed’ (Nd-Pr-Dy) – peer comparison For personal use only Nolans Nolans REO pricing Magnet feed components % of total forecast production (22/11/12) production tonnes p.a. US$/kg Neodymium Oxide (Critical REO) 20.58% 4,116 $80.50 Praseodymium Oxide 5.93% 1,186 $82.50 Dysprosium Oxide (Critica
Slide 12: 'Phosphor feed' (Y-Eu-Tb) – peer comparison
‘Phosphor feed’ (Y-Eu-Tb) – peer comparison For personal use only Nolans Nolans REO pricing Phosphor feed components % of total forecast production (22/11/12) production tonnes p.a. US$/kg Yttrium Oxide (Critical REO) 1.35% 270 $47.50 Europium Oxide (Critical REO) 0.39% 78 $1,810.00 Terbium Oxide (C
Slide 13: The Nolans Project
The Nolans Project For personal use only Nolans Rare Earths Project – world scale Positioned to supply 10% of global rare earths products this decade Recent Project Update confirms project viability Independent Experts Report – significant valuation upside Maiden Ore Reserve statement – pending Supp
Slide 14: FY2012 Highlights
FY2012 Highlights For personal use only New CEO Chris Tonkin appointed + $8.2million Share Purchase Plan IER – Nolans Mar -12 Project, valued at LOI signed with $3.2billion ThyssenKrupp for MOU signed with Sep -12 product sales Aug -11 New rare major Korean company earths for product sales Nolans Pr
Slide 15: Strategically significant resource
Strategically significant resource For personal use only RARE TONNES TONNES TONNES TONNES RESOURCES EARTHS (million) REO P2O5 U3O8 REO % Measured 4.3 3.3 144,000 572,000 1,120 Indicated 21 2.6 563,000 2,610,000 4,090 Inferred 22 2.4 511,000 2,220,000 3,610 TOTAL 47 2.6 1,217,000 5,410,000 8,830 1% R
Slide 16: Customer qualified REO products
Customer qualified REO products For personal use only Arafura’s separated REO products Produced four separated REO products to 99% purity In-specification final REO products verified by customers In the process of finalising production of a separated Lanthanum Oxide product to 99% LOI and MOU signed
Slide 17: 2012 funding activities
2012 funding activities For personal use only In a difficult climate with a supressed share price we have been able to raise $40 million and keep dilution to a minimum $8.2 million Share Purchase Plan – Thank you to all Shareholders for their ongoing support $22.5 million Research and Development Re
Slide 18: Proposed use of funds in 2013
Proposed use of funds in 2013 Project Refinement Engineering Other For personal use only Conversion to Ore Reserve Detailed engineering EIS submissions Demonstration Plant Transport and logistics Marketing operation Strategic partners Integrated Pilot Plant Technical assistance REO purification to F
Slide 19: Nolans Project – building on the Base Case
Nolans Project – building on the Base Case For personal use only We have demonstrated that the Base Case is viable and that it should generate a strong return, but there are challenges: Global markets are depressed and finance is difficult to source There are upward pressures on costs There are logi
Slide 20: Share price trend
Share price trend For personal use only Arafura Share Price – Yearly Trend 0.6 10,000,000 9,000,000 Upward trend predicted over the 0.5 8,000,000 next six months* – to $0.28 per share 7,000,000 0.4 6,000,000 0.3 5,000,000 Volume 4,000,000 ARU Share price 0.2 3,000,000 2,000,000 0.1 1,000,000 0 0 Sou
Slide 21: Arafura comparison to peers
Arafura comparison to peers For personal use only Market TREO EV/Tonne Mining EV Forecast REO Grade Company Location Project Stage Cap Resources Resources Method (US$m) Production (tpa) % (US$m) (Mt) (US$/tonne) Arafura Australia Open Pit Feasibility 70 17 1.2 20,000 14x 2.6% Australia Lynas Corp Op
Slide 22: Arafura Resources Limited – Thank you for your attendance
Arafura Resources Limited Level 5, 16 St Georges Terrace Perth WA 6000 For personal use only Tel: +61 8 6210 7666 arafura@arafuraresources.com.au Thank you for your attendance!
Arafura Resources — Shareholder Meeting (November 2012) on 6ix