Ionic Rare Earths Limited · ASX:IXR
Ionic Rare Earths — Investor Presentation (October 2022)
47 slides from Ionic Rare Earths's investor presentation, Oct 6, 2022
Slide 1: Sustainably Sourcing Magnet and Heavy Rare Earths to meet Net Zero Carbon Ambitions
Sustainably Sourcing Magnet and Heavy Rare Earths to meet Net Zero Carbon Ambitions Corporate Presentation IONICRE.COM.AU 6 October 2022
Slide 2: Cautionary Statement
Cautionary Statement IMPORTANT NOTICE AND DISCLAIMER This presentation should be considered in its entirety. If you do not understand the material contained in this presentation, you should consult your professional advisors. The sole purpose of this presentation is to provide shareholders with an u
Slide 3: IonicRE’s Vision
IonicRE’s Vision Integrated, Full Life-Cycle Rare Earth Company Mining Rare Earths Refining Rare Earths Recycling Rare Earths • Mining magnet and heavy rare • Developing standalone refinery to • Recycling secondary sourced spent earths from the Makuutu Rare separate magnet and heavy rare NdFeB magne
Slide 4: IonicRE Value Proposition
IonicRE Value Proposition 1. MAKUUTU IS A LARGE UNIQUE IONIC ADSORPTION CLAY DEPOSIT, PROVIDING SCALABLE EXPANSION POTENTIAL TO TAP INTO SURGING RARE EARTHS PRICING IN THE FUTURE “When peering into the outlook for the next decade to come, it becomes quickly apparent that the rapid demand growth of t
Slide 5: IonicRE Corporate Snapshot
IonicRE Corporate Snapshot STRATEGIC VALUE DRIVEN BY THE UNIQUE MAGNET AND HEAVY REO BASKET $0.10 200 CAPITAL STRUCTURE (as @ 05/10/2022) Shares Outstanding 3,872,604,920 Volume Share Price $0.09 180 Total Options Outstanding 199,000,000 (exercisable at 1.8 to 6.4 cents) $0.08 160 Total Outstanding
Slide 6: Rare Earth Supply Chain – Alternate capacity requires long term investment
Rare Earth Supply Chain – Alternate capacity requires long term investment SUSTAINABLY SOURCING THE MOLECULES WILL REQUIRE DEVELOPING ALTERNATIVE CAPACITY GLOBALLY • Rare earths are amongst the most resource-critical raw materials: they are of highest economic importance and at the same time feature
Slide 7: NdFeB Permanent Magnet Supply Demand to 2050
NdFeB Permanent Magnet Supply Demand to 2050 DEMAND FOR NEW NdFeB PERMANENT MAGNETS WILL EXCEED SUPPLY • Significant increase in demand for NdFeB permanent magnets from now to 2050, with 150% increase in total magnet capacity required forecast by 2050 • EV demand the main driver as global forecast E
Slide 8: Where do the Molecules come from?
Where do the Molecules come from? WITH DEMAND INCREASING, WHERE ARE THE MOLECULES OF Nd, Pr, Dy & Tb GOING TO COME FROM? • Forecast deficit in magnet REOs from 2023 accelerating over the next decade DyTb deficit escalating now • There will be insufficient heavy rare earth oxide supply outside of C
Slide 9: Existing Chinese Supply – Sourcing DyTb from Myanmar
Existing Chinese Supply – Sourcing DyTb from Myanmar CHINA INCREASING HARDROCK LREE MINED SUPPLY, IAC HREE SUPPLY QUOTA REMAINS STEADY • China has maintained IAC HREE mining quotas at same level since 2018 (19 ktpa) whilst ramping up readily available hardrock LREE production (101 ktpa 166 ktpa)2
Slide 10: Geo-Political Tensions – Driving Demand for Alternative, Resilient Supply
Geo-Political Tensions – Driving Demand for Alternative, Resilient Supply GLOBAL DESIRE TO DEVELOP ALTERNATIVE RARE EARTHS SUPPLY CHAINS TO PROTECT MANUAFCTURING AND DEFENCE “ Lithium and rare earths will soon be more important than oil and gas. Our demand for rare earths alone will increase fivefol
Slide 11: IonicRE aspires the build alternative supply from mine and recycling
IonicRE aspires the build alternative supply from mine and recycling DEVELOPING A SECURE, TRACEABLE, MAGNET AND HEAVY RARE EARTH SUPPLY CHAIN TO FACILITATE NET ZERO CARBON AMBITIONS The Mine – Makuutu The Refinery – Unlock flow of The Basket – High Margin Sustainable REO Production, REO to downstrea
Slide 12: Makuutu Rare Earths Project
Makuutu Rare Earths Project Low Capital, Modular, Ionic Adsorption Clay Project IONIC RARE EARTHS PAGE 12
Slide 13: Harnessing the wide appeal of the Makuutu Basket
Harnessing the wide appeal of the Makuutu Basket MAKUUTU PROVIDES A UNIQUELY BALANCED BASKET RICH IN MAGNET AND HEAVY RARE EARTHS MLA on RL 1693 – Stage 1 Makuutu is unique and Existing Infrastructure at Significant Exploration upside at receiving global interest due to Makuutu Makuutu still to be r
Slide 14: Significant Advantages for IAC Mining/Processing vs Hardrock
Significant Advantages for IAC Mining/Processing vs Hardrock Ionic Clay Rare Earth Elements Vs Hard Rock Rare Earth Elements Ionic Adsorption Clay (IAC) deposit mineralisation is highly Significant project and cost advantages associated with ionic clay projects like Makuutu desirable given it produc
Slide 15: The REE Basket Problem – the Solution requires HREE ‘Balance’
The REE Basket Problem – the Solution requires HREE ‘Balance’ IONICRE THROUGH MAKUUTU CAN DELIVER UNIQUE HREE BALANCE TO WESTERN LREE PRODUCTION IAC HREE mines complement hardrock LREE mines Ionic Adsorption Clay (IAC) deposit mineralisation is highly desirable in China, providing ‘balance’ to REE s
Slide 16: Tier-One Infrastructure already there – supports low CAPEX Development
Tier-One Infrastructure already there – supports low CAPEX Development EXCELLENT LOCAL INFRASTRUCTURE SUPPORTS LOW CAPEX DEVELOPMENT LOGISTICS Approximately 10 km from Highway 109, connecting Makuutu to both capital city Kampala and Port of Mombasa, Kenya Approximately 20 km from rail line connectin
Slide 17: Makuutu Mineral Resource Estimate and Mining Lease Application
Makuutu Mineral Resource Estimate Mining Lease Application MAKUUTU MRE CURRENTLY >500 MILLITON TONNES, FOCUS FOR MLA ON MAKUUTU CENTRAL ZONE (RL 1693) JORC MRE1 of 532 million tonnes @ 640 ppm Total Rare Earths Oxide (TREO), at a cut-off grade of 200 ppm TREO-CeO2 76% of Makuutu MRE now converted
Slide 18: Exploration Target Updated – Potential to Double Resource
Exploration Target Updated – Potential to Double Resource EXPLORATION TARGET REVISED INDICATING SIGNIFICANT UPSIDE AT EL00147 PLUS NEW TARGET TO NORTH WEST (EL00257) Updated Exploration Target1 reported 216 – 535 million tonnes grading 400 – 600 ppm TREO* *This Exploration Target is conceptual in na
Slide 19: ESG initiatives advancing at Makuutu
ESG initiatives advancing at Makuutu ESG FRAMEWORK TO BUILD LASTING LEGACY, DEFINING PATH TO NET ZERO CARBON RARE EARTH FOOTPRINT Environmental and Social Impact Rehabilitation to consider Community Support Programs Community socio-economic Assessment (ESIA) submitted in development of longer term i
Slide 20: Downstream Industries Empowered by IonicRE’s Basket and the Supply Chain Opportunity
Downstream Industries Empowered by IonicRE’s Basket and the Supply Chain Opportunity IONIC RARE EARTHS PAGE 20
Slide 21: IonicRE Basket is a highly strategic basket with escalating forecast value
IonicRE Basket is a highly strategic basket with escalating forecast value DOWNSTREAM PROCESSING TO REO AND VALUE ADDED PRODUCTS UNLOCKS SIGNIFICANT UPSIDE REO Pricing • IonicRE progressing & evaluating downstream REE Makuutu (China) separation and refining circuit – Scoping Study Rare Earth Oxide B
Slide 22: IonicRE Basket – Forecast Demand driving long term appreciation
IonicRE Basket – Forecast Demand driving long term appreciation Forecast demand for magnet REOs plus Yttrium driving long term pricing forecast for the Makuutu Basket 5.4% 23.2% 4.7% 4.4% 0.6% 3.7% 0.7% 25.4% Makuutu Magnet REO content Makuutu Magnet REO content used in other magnet Makuutu Y conten
Slide 23: China Dominates Global REE Separation & Refining Capacity
China Dominates Global REE Separation & Refining Capacity ALL HEAVY RARE EARTH ROADS LEAD TO CHINA …. UNTIL NOW Global heavy REO separation and refining capacity operated NPM Silmet Estonia and controlled by China1 Light Rare Earth Separation and Refining Northern Rare Earths Bayan Obo (Inner Small
Slide 24: REE Supply Chain and IonicRE Capability to date
REE Supply Chain and IonicRE Capability to date IONICRE ADDING CAPACITY TO BECOME INTEGRATED IN FUTURE RARE EARTH SUPPLY CHAINS 1. Makuutu Rare Earths Project 2. IonicRE Refinery 3. Magnet Recycling • Low Capital, modular development enables • Under Evaluation now assessing potential • Low capital d
Slide 25: Standalone Refinery to unlock value of balanced basket REOs
Standalone Refinery to unlock value of balanced basket REOs DEVELOPMENT SUPPLY CHAIN TO PRODUCE REOs OF INCREASING DEMAND AND DECREASING SUPPLY • Rare earth separation and refinery facility developed to take REO Production Rare Earth advantage of long life, secure and traceable supply source from Ca
Slide 26: IonicRE Vision – Facilitating Manufacturing
IonicRE Vision – Facilitating Manufacturing DEVELIVERING MAGNET & HEAVY REO SUPPLY CHAIN TO CREATE NEW INDUSTRY AND JV’s • Through the availability of long-life, low-cost MREC from Makuutu, IonicRE aiming to develop relationships with key industry participants to generate EU and US based manufacturi
Slide 27: Magnet Recycling and the Circular Economy of Rare Earths
Magnet Recycling and the Circular Economy of Rare Earths IONIC RARE EARTHS PAGE 27
Slide 28: Ionic Technologies – NdFeB Magnet Recycling
Ionic Technologies – NdFeB Magnet Recycling DEVELOPING CAPACITY ON RARE EARTH SEPARATION, REFINING AND RECYCLING • IonicRE advancing Ionic Technologies (formerly Seren Technologies), a leading magnet recycling technology company, based in Belfast UK, a spin out from Queen University Belfast (QUB) •
Slide 29: Ionic Technologies – NdFeB Magnet Recycling
Ionic Technologies – NdFeB Magnet Recycling RECYCLING OF MAGNET REO DOMINATED BY CHINA, MAKES UP 40% OF EXISTING GLOBAL SUPPLY ROW 1% 120 REO Production, Annual (ktpa) 100 80 60 40 20 China 0 99% 2021 2022 2023 2024 2025 2026 Refined magnet REO Recycled magnet REO Secondary sourcing (recycling) of r
Slide 30: Facilitating the automotive rEVolution
Facilitating the automotive rEVolution 33% Magnet REOs required for Permanent Magnet drives for EVs IONIC RARE EARTHS PAGE 30
Slide 31: Electric Vehicles – Sales Ramping up Faster
Electric Vehicles – Sales Ramping up Faster EV SALES GROWING FASTER THAN PRIOR FORECAST • Global governments mandate change with ICE to be banned in several countries from 2025, with significant changes expected in Europe where demand driven by government incentives will see it overtake China by 203
Slide 32: Electric Vehicles – Driven by NdFeB Magnets
Electric Vehicles – Driven by NdFeB Magnets PERMANENT MAGNETS USED IN EV’s REQUIRE ~4-8% DyTb TO OPERATE AT CONDITIONS REQUIRED • Worldwide EV demand driving insatiable appetite for NdFeB (Permanent magnets) • NdFeB magnets are essential for producing light, compact and high efficiency traction moto
Slide 33: Facilitating Offshore Wind Capability
Facilitating Offshore Wind Capability IonicRE basket producing all the Nd, Pr, Dy and Tb required for offshore wind turbines IONIC RARE EARTHS PAGE 33
Slide 34: Land Constrained – Go Offshore
Land Constrained – Go Offshore COUNTRIES ADOPT OFFSHORE WIND TURBINES TO REACH CO2 TARGETS 2021 world offshore wind turbine The International Renewable Energy capacity was 48 GW1 Agency (IRENA) also has a 1000GW ambition by 2050. McKinsey Global Energy Perspective 2021 Argus1 estimates an additional
Slide 35: No DyTb – No Offshore Wind Turbine Capacity
No DyTb – No Offshore Wind Turbine Capacity THE BASICS – HOW MUCH REO IS REQUIRED PER MW OF OFFSHORE TURBINE CAPACITY? Rare earth elements and boron (B) are essential for turbine designs that Most direct-drive turbines, but also to different extents certain employ permanent magnets (NdFeB). The HREO
Slide 36: Wind Turbines keep getting BIGGER!
Wind Turbines keep getting BIGGER! BIGGER TURBINES TO GENERATE MORE POWER, INCREASE CAPITAL EFFICIENCY • Direct Drives have become the technology of choice for offshore wind turbines, where low maintenance cost is crucial, and where lower wind speed locations are now being explored • Application of
Slide 37: Facilitating Defence Capability
Facilitating Defence Capability IonicRE basket – Heavy Rare Earth Strategic Appeal for Defence Applications IONIC RARE EARTHS PAGE 37
Slide 38: Magnet & Heavy REO crucial in Defence Applications
Magnet & Heavy REO crucial in Defence Applications DEFENCE HREO SUPPLY CHAIN – PROVIDING SECURE SOURCE OPTION TO FACILITATE BUILDING STOCKPILES Makuutu Basket ~73% used in Defence Applications La2O3 13.5% Y2O3 25.4% Y2O3 used in F-35 presently sourced from IACs in southern Lu2O3 China and Myanmar 0.
Slide 39: Magnet & Heavy REO crucial in Defence Applications
Magnet & Heavy REO crucial in Defence Applications DEFENCE HREO SUPPLY CHAIN – MAKUUTU POTENTIALLY SUPPLIES IT ALL US Navy Virginia Class Submarine • Numerous Magnet & HREO materials are used in defence applications in the engines, disk drive motors, radar of the aircraft, fin actuators in missile g
Slide 40: Magnet & Heavy REO – IonicRE Production Delivers Every Need
Magnet & Heavy REO – IonicRE Production Delivers Every Need US Navy Virginia Class Submarine La Sm Tb Pr Eu Lu Nd Dy Y Lockheed Martin F-35 Lightning II Joint Strike Fighter Rare Earth Elements in National Defense: Background, Oversight Issues, and Options for Congress, 23 December
Slide 41: Heavy Rare Earth Dominant
Heavy Rare Earth Dominant IonicRE basket – 44% Heavy Rare Earths deployed in high end applications IONIC RARE EARTHS PAGE 41
Slide 42: Key HREO Applications without Substitute – New Supply Required
Key HREO Applications without Substitute – New Supply Required HREO USED IN HIGH END FOR NICHE APPLICATIONS – NO SUBSTITUTION FOR REOS IN SPECIFIC APPLICATIONS MRI Machine PET Scan NdFeB and SmCo permanent magnets Erbium is a key input into enabling 5G technology • IAC mines in southern China and My
Slide 43: Key HREO Applications – Fibre Laser outlook to 2030
Key HREO Applications – Fibre Laser outlook to 2030 GLOBAL FIBRE LASER MARKET VALUE ESTIMATED TO REACH US$8.42 BILLION BY 2030 (CAGR 14.5%) • Global fiber laser market value estimated to be US$2.23 Billion in 2020 • Optical fibers used in the fiber laser are doped with rare earth metals such as Yb,
Slide 44: Scandium Upside
Scandium Upside IonicRE basket – Scandium to unlock new industries and ’Blue Sky’ IONIC RARE EARTHS PAGE 44
Slide 45: Makuutu is one of the largest global Scandium resources… and growing
Makuutu is one of the largest global Scandium resources… and growing 2ND LARGEST GLOBAL SCANDIUM RESOURCE REPORTED Dalur (Rosatom) Kovdor (EuroChem) Deposit Metals: U, Sc Deposit Metals: FeO, Phosphate Scandium Resource: unknown Scandium Resource: unknown Project Status: Producing Key to the success
Slide 46: Applications with Aluminium in Light-weighting Transportation
Applications with Aluminium in Light-weighting Transportation The need for light-weighting solutions has dramatically increased the adoption of aluminium alloys in transportation. Stricter efficiency standards, the advent of the electric vehicle and the emergence of new sectors are accelerating upta
Slide 47: Ionic Rare Earths Limited
Ionic Rare Earths Limited Level 1, 34 Colin Street West Perth WA 6005 Australia www.ionicre.com.au admin@ionicre.com.au T +61 8 9481 2555 F +61 8 9485 1290 IONIC RARE EARTHS PAGE 47
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