Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — Lynas — Shareholder Meeting (November 2019)
28 slides from Lynas Rare Earths's shareholder meeting presentation, Nov 26, 2019
Slide 1: Annual General Meeting 2019
For personal use only LYNAS CORPORATION ANNUAL GENERAL MEETING 2019 26 November 2019 1
Slide 2: Mike Harding, Chairman
For personal use only MIKE HARDING Chairman 2
Slide 3: Amanda Lacaze, CEO & Managing Director
For personal use only AMANDA LACAZE CEO & Managing Director 3
Slide 4: 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 5: Lynas: An exciting company in an exciting market
Lynas: An exciting company in an exciting market The Rare Earths market is exciting and growing For personal use only • A great opportunity to participate in the green revolution A focus on Sustainability is essential to achieve growth in green industries • Lynas leads the pack in the Rare Earths in
Slide 6: The Year in Review
The Year in Review For personal use only • Lynas NEXT project delivered • Political and regulatory challenges in Malaysia • Heightened geopolitical focus on Rare Earths • Wesfarmers takeover proposal successfully defended • Lynas 2025 growth plan announced • New arrangements for JARE loan facility a
Slide 7: Building on our unique market position
Building on our unique market position Mt Weld: A true Tier 1 resource For personal use only Key Metrics ASX Ticker LYC ISIN AU000000LYC6 World’s 2nd largest producer and the Shares Outstanding as at 30 September 695,378,577 only significant rest of world Rare Earth 2019 Cash Balance (30 September 2
Slide 8: Delivering strong financial performance in challenging conditions
Delivering strong financial performance in challenging conditions For personal use only NPAT $80.0m (FY18: $53.1m) Production 19,737t REO (FY18: 17,753t) EBIT $56.4m (FY18: $81.0m) 5,898t NdPr EBITDA $100.7m (FY18: $121.9m) (FY18: 5,444t) Revenue $363.5m (FY18: $374.1m) Cash Flow $104.1m (FY18: $118
Slide 9: Delivering strong financial performance in challenging conditions
Delivering strong financial performance in challenging conditions Production Volume REOt Lynas Enterprise Value For personal use only 25,000 420 Sales Revenue (A$'m) 4000 370 3500 Debt 20,000 320 3000 Market Cap AUD millions 15,000 270 2500 REOt A$'m 220 2000 10,000 1500 170 120 1000 5,000 500 70 0
Slide 10: Achieving $35m Lynas NEXT capacity building project on time and on budget
Achieving $35m Lynas NEXT capacity building project on time and on budget For personal use only Demonstrated capacity to produce at higher rates, resulting in record NdPr and REO sales volume and production ✓ ✓ New Nd and Pr separation circuit successfully commissioned and first production and sales
Slide 11: Mt Weld in FY19
For personal use only Mt Weld in FY19 Lynas NEXT initiatives § Updated Mt Weld Mineral Resources and Ore Reserves Statement released on 6 August 2018: • 70% increase in Mineral Resource • 60% increase in Ore Reserve • Ore Reserve confirmed 25+ year life at Lynas NEXT rates (7000t NdPr/annum) § 3rd T
Slide 12: Lynas Malaysia in FY19
Lynas Malaysia in FY19 For personal use only 365 Days LTI free Record Production (total REO and NdPr) Lynas NEXT initiatives § Proven ability to produce NdPr at Lynas NEXT rates § Successful start-up of new Nd and Pr separation circuit: • Separated Nd oxide produced from December 2018 • Separated Pr
Slide 13: Increased product range through Lynas NEXT
Increased product range through Lynas NEXT For personal use only Nd oxide - targeting 1500t per annum Pr oxide - targeting 300 tonnes/annum for magnets & catalysts for catalysts, pigments & magnets 13
Slide 14: Improving Capital Efficiency
Improving Capital Efficiency For personal use only § Phase 1: 29 Flotation Cells § Phase 2: 9 Flotation Cells § Lynas NEXT: 1 Flotation Cell § Lynas 2025: 3-5 Flotation Cells Scoping hybrid power station with potential to 40,000L per month reduction in supply up to diesel consumption through the 50%
Slide 15: Lynas NEXT: Cracking and Leaching
Lynas NEXT: Cracking and Leaching For personal use only MgO Circuit Split, new heat exchangers Redesigned WGT ducting added, new pumping designs, new hopper designs, changed filter configurations Emissions improvements 15
Slide 16: Malaysian political and regulatory challenges
Malaysian political and regulatory challenges § 4th scientific Review completed For personal use only • Lynas operations are low risk and compliant with all relevant regulations • Lynas residue facilities are properly managed § Quality relationships created with PH government § Staff and local commu
Slide 17: Making a meaningful contribution to our communities
Making a meaningful contribution to our communities For personal use only The safety of our people, our communities and the environment is our first priority We focus on making a positive contribution to local employment, skills, education, health & the environment We support disadvantaged groups in
Slide 18: Delivering on our commitment to safe, sustainable production
Delivering on our commitment to safe, sustainable production Designed from the ground up as a state-of- For personal use only the-art environmentally-responsible Rare Earths operation Certified to OHSAS 18001 (Occupational Health and Safety Management Systems), ISO 14001 (Environmental Management Sy
Slide 19: Creating opportunities from the spotlight on Rare Earths
For personal use only Creating opportunities from the spotlight on Rare Earths Geopolitics Macroeconomics Market Pricing Market Dynamics Strategic Partners US-China trade Increased government NdPr published price NdPr magnet market NdPr demand is tensions have led to focus, in key markets, decreased
Slide 20: Playing a role in diversifying the Rare Earths supply chain
Playing a role in diversifying the Rare Earths supply chain For personal use only Mining Separation Metal Alloy Magnet Component OEM 20
Slide 21: Serving a high growth market
Serving a high growth market For personal use only Global demand for fresh NdPr Oxide 70.0 • Energy International Agency: 125-220m electric cars on the road in 2030 60.0 F Equivalent to 88-155ktns additional supply of NdPr over next 10 years REO kt of NdPr Oxide 50.0 40.0 • Most new models will be l
Slide 22: Lynas today
For personal use only Lynas today Malaysia Lynas Malaysia is the world’s largest, most modern RE plant designed on best practice sustainability principles Western Australia A true tier 1 resource, high grade, long life, Mt Weld is recognised as the world’s premier deposit 22
Slide 23: Lynas in 2025
Lynas in 2025 Malaysia For personal use only A dynamic operation in Gebeng with increased investment in downstream processing; SX, Product Finishing and recycling. United States Western Australia Exciting specialty materials market An expanded WA operation; opportunity with a skilled U.S. based Mini
Slide 24: Lynas 2025: Growing with the market
For personal use only Lynas 2025: Growing with the market A larger business to meet • Efficient capacity expansion leveraging Lynas’ unique assets forecast demand growth • 10,500 tpa NdPr products Diversified Industrial footprint • Upstream processing close to the resource; relocation of C&L to WA w
Slide 25: Lynas: Continuing to build on our unique competitive advantages
Lynas: Continuing to build on our unique competitive advantages For personal use only Mt Weld Market position Inhouse Proven Operations Will to win • A true Tier 1 • World’s second Intellectual • Established • Corporate culture Resource largest Rare Earths Property operating assets founded on our •
Slide 26: Visit our Investor Centre
For personal use only Visit our Investor Centre at: www.lynascorp.com 26
Slide 27: Competent Person's Statement
Competent Person’s Statement For personal use only COMPETENT PERSON’S STATEMENTS– MINERAL RESOURCES The information in this report that relates to the 2018 Mineral Resources is based on information compiled by Mr Alex Whishaw under the guidance of Dr Andrew Scogings. Mr Wishaw and Dr Scogings are fu
Slide 28: Annual General Meeting 2019
For personal use only LYNAS CORPORATION ANNUAL GENERAL MEETING 2019 26 November 2019 28