Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — Lynas — Shareholder Meeting (November 2020)
22 slides from Lynas Rare Earths's shareholder meeting presentation, Nov 26, 2020
Slide 1: AGM Presentation
For personal use only LYNAS CORPORATION AGM Presentation 26 November 2020 1
Slide 2: Disclaimer
Disclaimer For personal use only This Presentation has been prepared by Lynas Corporation Limited (ABN 27 009 066 648) (Lynas or financial position and performance are also forward-looking statements. Forward-looking statements, the Company) This Presentation contains summary information about Lynas
Slide 3: Our values reflect the way we work every day
Our values reflect the way we work every day For personal use only 3
Slide 4: COVID-19 best practice is built into the way we work
COVID-19 best practice is built into the way we work For personal use only Contributing to our local aged care home in Malaysia Care packages for women in our Temperature testing at Lynas Malaysia Socially distanced stretches at Mt Weld Goldfields community in WA 4
Slide 5: Our strong foundations and approach underpin our achievements
Our strong foundations and approach underpin our achievements For personal use only In FY2020 we managed a number of challenges: By focusing on what matters most: • Malaysian operating licence renewal • Caring for our people • Finalising Lynas NEXT initiatives • Building a business embracing best pr
Slide 6: FY20 Operational Highlights
FY20 Operational Highlights People Sustainability Regulatory Lynas 2025 growth vision For personal use only Excellent safety outcomes Ethical and sustainable Lynas Malaysia operating Growing with the market production of Rare Earths licence renewed • Kalgoorlie selected as the • 12-month rolling los
Slide 7: FY2020 Financial Highlights
FY2020 Financial Highlights For personal use only Revenue Cash at year end Gross Profit Cash flows from $305.1m $101.7m $47.8m operating activities $32.1m (FY19: $363.5m) (FY19: $89.7m) (FY19: $90.5m) (FY19: $104.1m) EBITDA EBIT NdPr Produced Total REO $59.8m ($6.2)m 4,656 tonnes Produced 14,562t (F
Slide 8: FY20 Sales Volume & Revenue were affected by temporary production halts
FY20 Sales Volume & Revenue were affected by temporary production halts in 2 quarters For personal use only December COVID-19 December COVID-19 production production production production halt halt halt halt 6,000 Sales Volume (REOt) 120 Sales Revenue (A$'m) 5,000 100 4,000 80 3,000 60 2,000 40 1,00
Slide 9: Underlying growth drivers remain unchanged
Underlying growth drivers remain unchanged For personal use only 9
Slide 10: Governments around the world are focused on Rare Earths supply chain resilience
Governments around the world are focused on Rare Earths supply chain resilience For personal use only Source: Global Trade & Investment Megatrends, CSIRO Data 61, Austrade, November 2020 10
Slide 11: We have the balance sheet to grow
We have the balance sheet to grow For personal use only We are ready to put our balance sheet to work Recent $425m equity raising Equity funding significantly received significant demand from enhances Lynas’ balance sheet investors during a critical transformation and growth period Delivers ti
Slide 12: Developing strong Upstream & Downstream capability
Developing strong Upstream & Downstream capability For personal use only Malaysia United States Lynas Malaysia: A dynamic operation in Gebeng, Malaysia with Cracking & Leaching, Lynas signed contract with U.S. Dept of Solvent Extraction, Product Finishing Defense in July 2020 for detailed design of
Slide 13: Optimising our resource at Mt Weld
Optimising our resource at Mt Weld For personal use only • Continue to blend Duncan ore into the plant feed to increase the Dysprosium (Dy) and Terbium (Tb) content of SEG produced at Lynas Malaysia • Ongoing upgrade of processing circuit to accommodate changes in ore mineralogy and improve concentr
Slide 14: Exploration Results from Fresh Carbonatite below Life of Mine Pit
Exploration Results from Fresh Carbonatite below Life of Mine Pit For personal use only Two new water bores established below the current pit floor, both holes extended for exploration purposes This is the first time we have drilled to these depths New deep drilling in the Fresh Carbonatite below th
Slide 15: Kalgoorlie highlights
Kalgoorlie highlights • Committed to Kalgoorlie and secured industrial zoned land from City of Kalgoorlie-Boulder For personal use only • WA government support – obtained “Lead Agency” status • Australian government support – obtained “Major Project” status • Active stakeholder and community engagem
Slide 16: Kalgoorlie Rare Earth Processing Facility
Kalgoorlie Rare Earth Processing Facility For personal use only Kalgoorlie, Western Kalgoorlie, WesternAustralia Australia Planned Rare Planned Earth Rare Processing Earths Facility Processing Facility 16
Slide 17: Progress in Malaysia
Progress in Malaysia For personal use only • Lynas NEXT product range achievements are delivering sustainable additional value: • Separated Nd and Pr: Growing demand for Nd provides price premium of USD 2-3/kg compared to NdPr • Modification to La/Ce separation: Stable product quality has resulted i
Slide 18: Progress in the United States
Progress in the United States • Strong demand for Dy/Tb supply from magnet makers and buyers: For personal use only • Tb increased from US$360/kg in September 2018 to US$480/kg in September 2019 to US$630/kg in September 2020 and US$780/kg in November 2020 • Demand for these magnet temperature stabi
Slide 19: Leading the way with Responsible Rare Earths
Leading the way with Responsible Rare Earths For personal use only Our commitment to ethical and sustainably produced Rare Earths includes: • Embracing new technologies in existing and new plant operations to reduce our environmental footprint • Participating in external verification initiatives: •
Slide 20: Match fit for future growth
Match fit for future growth For personal use only EXPAND INVEST DELIVER Serve strategic Build on our first Deliver our plan to markets through a mover advantage to grow with the market diversified industrial create a larger and provide enhanced footprint with business to meet value processing facili
Slide 21: Visit our Investor Centre
For personal use only Visit our Investor Centre at: www.lynascorp.com 21
Slide 22: Appendix A: JORC Compliance and Competent Person's Statement
Appendix A: JORC Compliance and Competent Person’s Statement For personal use only Exploration Results The information in this report that relates to the Exploration Results is based on information compiled by Dr Sadangaya Ganesh Bhat. Dr Sadangaya Ganesh Bhat is a full-time employee of Lynas Corpor