Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — BBY Rare Earths Conference Sydney 2011
28 slides from Arafura Rare Earths's conference presentation, Apr 12, 2011
Slide 1: On Track to Be a Key Part of The New Rare Earths Supply Era
For personal use only Arafura Resources – On Track to Be a Key Part of The New Rare Earths Supply Era Dr. Steve Ward – MD & CEO, Arafura Resources BBY Conference, Sydney, 12 April 2011
Slide 2: Disclaimer
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 perf
Slide 3: Agenda
Agenda For personal use only Introduce Arafura Arafura’s Nolans Rare Earths Project progress Rare Earth Industry Highlights Arafura’s position as part of the new supply era Summary and Conclusion Page 3 3
Slide 4: Introduction
For personal use only Arafura Resources Limited Introduction Page 4 4
Slide 5: Introduction to Arafura: Corporate Summary
Introduction to Arafura Corporate Summary Australian Public Company – formed 2007 Business Model - Adding Value in Australia For personal use only Listed on ASX in 2003 (code ARU) Nolans Project for Rare Earths Own technology developed Bankable Feasibility Study due H2 2011 Ore Project F
Slide 6: Nolans Project – Globally Significant
Nolans Project – Globally Significant High potential value, long life, multiple revenue streams with upside potential…. For personal use only Phase 1 Annual Production REO Rare Earths 20,000 t Oxides P2O5 as 61% 80,000 t Financial Evaluation October 2010 Phosphoric Acid October 2010 Project Economic
Slide 7: Market Value
Market Value Increasing recognition of value in Arafura ……. For personal use only ARU Price History and Volume $2.00 8,000,000 $1.80 7,000,000 $1.60 6,000,000 $1.40 $1.20 5,000,000 $1.00 4,000,000 $0.80 3,000,000 $0.60 2,000,000 $0.40 $0.20 1,000,000 $0.00 0 Volume Share Price Market Capitalisation
Slide 8: Nolans Rare Earths mix
Nolans Rare Earths mix For personal use only REO Price % REO Volume Projected Revenue Rare Earth Element (US$/kg) % Revenue contained (tonnes) (US$ millions) p.a. April 7 2011 Lanthanum 19.74% 3,948 $121.00 $478 16.0% Cerium 47.53% 9,506 $121.00 $1,150 38.5% Praseodymium 5.82% 1,164 $199.00 $231 7.7
Slide 9: Nolans Project – Nolans Bore Mine
Nolans Project – Nolans Bore Mine For personal use only The Nolans Bore Mine and its supporting infrastructure will act as a catalyst for business opportunities throughout Central Australia. 9
Slide 10: Nolans Project – Whyalla Rare Earths Complex
Nolans Project – Whyalla Rare Earths Complex For personal use only The Whyalla Rare Earths Complex will be a very substantial chemical processing operation by Australian standards. 10
Slide 11: Arafura's World-Class Nolans Project: Update on Progress
For personal use only Arafura’s World-Class Nolans Project Update on Progress Page 11 11
Slide 12: Progress and Future Plan
Progress and Future Plan “Our vision is to be the recognized leading supplier of rare earths to users worldwide” For personal use only 2010 2011 2012 2013 2014 • Business model established • Company’s Future • Building the • Arafura debut • Delivering our • Australian based Confirmed company vision
Slide 13: Final Technology Programs Underway
Final Technology Programs Underway For personal use only Mining & Concentration Hydrochloric Acid regeneration Chemical Separation Rare Earth Phosphate Processing Processing Rare Earth Uranium Phosphoric Gypsum Oxides Oxide Acid Gypsum production from Hydrochloric Acid Already proven / demonstrated
Slide 14: Expansion Drilling Program – In progress
Expansion Drilling Program – In progress Major program – 45,000m planned in 2011 which is more than previous total ( 43,000m) For personal use only Sampling facilities Nolans Bore Drill rig Drill rig 500m Drill rigs Drill rig N 14
Slide 15: Regulatory Approvals Underway
Regulatory Approvals Underway For personal use only Environmental impact statements are being prepared for Nolans & Whyalla Surveys and studies are progressing well South Australian Government has granted Major Project status for Whyalla complex 15
Slide 16: Nolans BFS & Project Financing
Nolans BFS & Project Financing For personal use only Significant build up of expert assistance……… Major engineering contractors have been engaged to assist with Bankable feasibility study: - Nolans Bore Mine; Lycopodium - Whyalla Rare Earths Complex: AMEC Minproc Arafura’s in-house team has been
Slide 17: Arafura's Current Sales Activities
Arafura’s Current Sales Activities For personal use only Arafura is the only new (short to medium term) producer with significant quantities of Rare Earth Oxides still for sale; Good mix of Rare Earth Oxides available and suitable for all end applications; Significant interest in Arafura and i
Slide 18: Nolans Project – Key Metrics
Nolans Project – Key Metrics Each rare earth project is different in scope and care is required when For personal use only making comparisons….. Capital Cost (A$950 million) caters for mine and four processing plants: Rare Earth Oxides, Phosphoric Acid, Uranium Oxide and Gypsum; Rare Earths – 20
Slide 19: Rare Earth Industry Highlights
For personal use only Rare Earth Industry Highlights Page 19 19
Slide 20: Current Market Dynamics – 'The Perfect Storm'
Current Market Dynamics – ‘The Perfect Storm’ The warning signs have been present for some time….. For personal use only Chinese Export Quota History 2004-2010 (Tonnes REO) Ye Domestic Foreign Total Y on Y ROW ar Companies Companies Change Demand REE Production Trends 20 48,040 17,659 65,699 0% 46,0
Slide 21: Future Supplies – Background
Future Supplies – Background Lots of hype regarding new sources of rare earths, but, in reality, suppliers For personal use only will struggle to keep up with demand for many years to come ….. Rare Earths is a complex industry and requires a deep understanding; Rare Earths are common in the Eart
Slide 22: Supply and Demand
Supply and Demand The Industry challenge is on the Supply side to keep up with demand….. For personal use only REO Global & China Demand/Supply (BCC Forecast 2009-2014, Internal Demand Forecast 2014-2022) 450,000 400,000 These forecasts 350,000 Overall global include new projects: tightness has been
Slide 23: Arafura's Position as Part of The New Supply Era
For personal use only Arafura’s Position as Part of The New Supply Era Page 23 23
Slide 24: Rare Earths – Entering a New Era, Supply Shortage
Rare Earths – Entering a New Era, Supply Shortage Supply For personal use only New Opportunity Era USGS report: Uncertainty Western 2016-2020 after 2002 Supply Era 2011-2015 120 Arafura 100 Molycorp 80 Lynas 60 40 20 China a net importer 0 Long lead time for capacity 20,000 tpa additional De
Slide 25: Future Supplies – Summary
Future Supplies – Summary 2011 – 2015 New Western Supply Era For personal use only Underpinned principally by Molycorp, Lynas and Arafura. Each has/is/will be: - large scale production 20,000+ t p.a. - proven resources - singularly rare earth focused - industry cost competitive 2016 – 2020 Supply
Slide 26: Summary and Conclusion
For personal use only Summary and Conclusion Page 26 26
Slide 27: Arafura Resources – Summary
Arafura Resources – Summary Arafura is a credible part of the future of the Rare Earths industry ….. For personal use only Confirmed Strategy and Business Model World class, large scale, long life, high value creating Nolans Project Strategically important for countries outside China Highly ef
Slide 28: Thank You
For personal use only Thank You 28 Page 28
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