Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — FY2022 Earnings Presentation
29 slides from Lynas Rare Earths's earnings presentation, Aug 26, 2022
Slide 1: Lynas Rare Earths Limited FY2022 Results Presentation
Lynas Rare Earths Limited FY2022 Results Presentation 26 August 2022 Growing and developing the outside China rare earth supply chain
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Lynas Rare Earths Limited (ABN 27 009 066 648) (Lynas as a general guide only and should not be relied upon as an indication or guarantee of future or the Company) this presentation contains summary information about Lynas and its subsidiaries perfor
Slide 3: Acknowledgement
Acknowledgement You will need to 1. 2. xx Lynas Rare Earths acknowledges the Traditional Owners of the lands on which we live and work, across Australia. We acknowledge and value Lynas’ Aboriginal and Torres Strait Islander employees, partners and communities and pay respect 4. their to Elders past,
Slide 4: FY2022 financial highlights
FY2022 financial highlights You will need to Record Profit Record Sales Revenue $540.8m $920.0m FY21 NPAT: $157.1m FY21: $489.0m EBITDA Cash and Short Term Deposits $601.2m $965.6m FY21: $235.3m 30 June 2021: $680.8m 44
Slide 5: FY2022 operational highlights
FY2022 operational highlights 15,970t 5,880t Total REO production NdPr production FY21: 15,761 tonnes FY21: 5,461 tonnes $60.3 $186.3m Average selling price Property, plant & per kg REO equipment capital spend FY21: $29.8/kg 30 June 2021: $40.4m 55
Slide 6: FY2022 ESG highlights
FY2022 ESG highlights Operating safely Increasing gender through COVID-19 diversity pandemic 24% women senior executives LTIF rate of 0.8 per million hours worked at 30 June 23% women employees at 30 Over 400 days LTI free June achieved at Mt Weld site 50% women Board members Enhancing climate Deliv
Slide 7: Rare earths market remained strong in FY2022
Rare earths market remained strong in FY2022 Rare earth market prices sustained at high levels Enhancing climate change resilience • NdPr price 70-80% higher in H2 FY22 than H2 FY21 GHG Policy, commitment to Science Based Targets initiative New wind power • China domestic Energy transitionprice in J
Slide 8: Mt Weld in FY2022 / Results of 1km deep drillhole
Mt Weld in FY2022 • Mining Campaign 4-1 commenced • Campaign 3 ores processed in the mill • Debottlenecking initiatives to ensure supply for increased production rates at Lynas Malaysia • Concentrate shipped to Malaysia using both commercial and charter shipping to mitigate logistics issues Results
Slide 9: Malaysia in FY2022 / Focus on asset integrity
Malaysia in FY2022 • Record NdPr production of 1,687 tonnes in March quarter • June quarter production affected by water supply challenges • Continued 7S programmes throughout facility • Strategic inventories of critical chemicals and reagents were built up during the period Focus on asset integrity
Slide 10: Kalgoorlie in FY2022 / United States in FY2022
Kalgoorlie in FY2022 • Full construction approvals received in FY22 • 100% of equipment purchased • Construction works over 40% complete by year end • Kiln installed in position and has rotated under its own power • Work on concrete, foundations and frames for key buildings has progressed rapidly •
Slide 11: Our commitment to ESG starts with our people and communities
Our commitment to ESG starts with our people and communities People • Lynas employs 911 people globally: • 760 in Malaysia • 151 in Australia • Strict COVID-19 protocols • Safe & respectful workplace • Over 400 days LTI free at Mt Weld since April 2021 Communities Lynas is committed to: • Hiring and
Slide 12: Caring for the environment / Awards & recognition
Caring for the environment • Greenhouse Gas (GHG) policy implemented • Commitment to Science Based Targets initiative (SBTi) September 2021 • Rehabilitation trials conducted as part of biodiversity focus • New processing flowsheet that reduced energy demand = taking 515 cars off the road per year Aw
Slide 13: Accelerated growth plan
Accelerated growth plan
Slide 14: Demand for Rare Earth materials is accelerating
Demand for Rare Earth materials is accelerating NdFeB magnet demand forecast to grow from 130,000 tonnes of NdFeB magnets consumed in 2020 to 265,000 tonnes in 2030 xx Malaysia/ Malaysia/ Motor and end product Mt Weld mine and Metal & magnet partners in Kalgoorlie United States customers in Asia, Eu
Slide 15: We have accelerated and upgraded our growth plan
We have accelerated and upgraded our growth plan Our new plan will include capital investment at each production stage 1 2 3 4 5 15
Slide 16: Expanding existing operations and adding new sites
Expanding existing operations and adding new sites Malaysia United States U.S. DoD funding awarded for HRE and Lynas Malaysia: 10 years of operation in LRE separation Gebeng, Malaysia Expected to be located on the Gulf Coast of Efficient Cracking & Leaching, Solvent Texas Extraction, Product Finishi
Slide 17: Capital investment plan for growth and asset integrity
Capital investment plan for growth and asset integrity Planned capital expenditure of approx. $600 million in FY23 and $600 million in FY24 for sustaining capital and major growth projects including: • Completion of the Kalgoorlie Rare Earths Processing Facility • Mt Weld expansion project to delive
Slide 18: Developing our Mt Weld resource
Developing our Mt Weld resource 2022 • Long life ore reserves • Mining is in near surface weathered zone • Continued drilling enables enhanced mine planning • Mt Weld Mineral Rare Earth Ore Reserve estimate 18.9m tonnes at average grade of 8.3% TREO* • Mt Weld Rare Earth Mineral Resource Estimate 55
Slide 19: The exploration target has been defined for a pre-feasibility study
The exploration target has been defined for a pre-feasibility study Exploration target 19
Slide 20: We are investing $500m at Mt Weld
We are investing $500m at Mt Weld Mt Weld today Mt Weld expansion Concentrate feedstock to produce 7,000 12,000 12ktpa NdPr finished product Throughput Capacity Mtpa 0.3 1.3 Apatite Ore Processing Capability Tailings Water Recycle Yield 50% >90% Power Supply Diesel Gas > Hybrid Renewable This will d
Slide 21: Continued progress on Kalgoorlie Rare Earths Processing Facility
Continued progress on Kalgoorlie Rare Earths Processing Facility
Slide 22: Kalgoorlie - People / Kalgoorlie - Community
Kalgoorlie - People • Key Operational and Maintenance Leadership team members recruited • Commitment to residential operational workforce • Future-facing critical minerals industry proving attractive to future employees Kalgoorlie - Community • Ongoing consultation and engagement with local communit
Slide 23: Lynas Malaysia
Lynas Malaysia Industrial plan developed for capital works Works required over the next 2-3 years include: • Ongoing works required for the plant to receive and process the mixed rare earth carbonate (MREC) feedstock from the Kalgoorlie Rare Earths Processing Facility (including facilities for unloa
Slide 24: United States project
United States project 1. Commercial Heavy Rare Earths separation facility • Lynas awarded US$120m follow on contract by U.S. Department of Defense for construction of a U.S. commercial Heavy Rare Earths facility after successful completion of the Phase 1 contract • Facility will be co-located with L
Slide 25: United States project
United States project 2. Commercial Light Rare Earths separation facility • Lynas progressing with plans for co- located Light Rare Earths processing facility following funding contract with U.S. Department of Defense (announced 22 January 2021) • U.S. funding to be capped at approximately US$30 mil
Slide 26: Investing in enhanced climate change resilience and circular economy
Investing in enhanced climate change resilience and circular economy • State-of-the-art water recycling • Additional high-recovery Mt Weld bore water desalination • Tailings storage facilities with from Mt Weld tailings dam segregated storage for potential plant • Treated recycled water to be future
Slide 27: Our ongoing focus in FY2023
Our ongoing focus in FY2023 Enhancing Accelerating Delivering Operational Growth Financial performance Innovation performance Resource Organisational ESG outcomes development capability Community Industrial footprint benefits 27
Slide 28: Visit us at LynasRareEarths.com
Visit us at LynasRareEarths.com 28
Slide 29: Appendix A: JORC Compliance and Competent Person's Statement
Appendix A: JORC Compliance and Competent Person’s Statement 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 Rare Earths. Dr Sadangaya Ga