Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — 23rd Annual Mineral Sands and Rare Earths Conference 2022
19 slides from Arafura Rare Earths's conference presentation, Nov 22, 2022
Slide 1: ASX Announcement: Mineral Sands and Rare Earths Conference
ASX ANNOUNCEMENT MINERAL SANDS AND RARE EARTHS CONFERENCE 22 November 2022 For personal use only Arafura Rare Earths Limited (ASX: ARU) (“Arafura” or the “Company”) is pleased to attach a copy of its presentation delivered by Managing Director, Gavin Lockyer, at the 23rd Annual Mineral Sands and Rar
Slide 2: Nolans Project Recent Market Developments
22/11/2022 Nolans Project Recent Market For personal use only Developments 22 November 2022 Mineral Sands & Rare Earths Conference Perth Western Australia (ASX:ARU) 1
Slide 3: Disclaimer
22/11/2022 Disclaimer For personal use only This presentation has been prepared by Arafura Rare Earths Limited (Arafura, Arafura Rare Earths or the Company) and is of a summary form only and therefore contains general background information which may not be complete. It should be read in conjunction
Slide 4: A World Class Project in the heart of Australia
A World Class 22/11/2022 Project in the For personal use only heart of Australia (ASX:ARU) 3
Slide 5: Corporate Capital Structure Snapshot
22/11/2022 Corporate Capital Structure Snapshot ASX Code ARU ASX Share Price (18 Nov 2022) $0.46 For personal use only Shares on Issue 1,727m Market Capitalisation $794.62m Nolans is a shovel-ready world class Nolans aims to supply 12 Month Liquidity $544.43m NdPr project Cash* $49.01m 5-10% of glob
Slide 6: Delivering to an ESG World
22/11/2022 Delivering to an ESG World For personal use only Nolans is the only NdPr focused project in Australia that plans to mine and process ore to oxide at a single site. In a changing world a focus on environmental responsibility has become paramount All environmental approvals have been secure
Slide 7: Updated Project Economics
22/11/2022 Base case scenario average LOM Updated Project Economics NdPr US$130/ kg Key Project Information Post-tax NPV8 of A$2.4 For personal use only Mining and Production Mine Life (years) 38 billion and IRR of 19.3% NdPr Oxide (tpa) 4,440 Upside Case average LOM US$190/ kg SEG/HRE Oxide (tpa) 4
Slide 8: NdPr Market Development
22/11/2022 NdPr Market For personal use only Development (ASX:ARU) 7
Slide 9: NdPr for Magnets Critical Component in Clean Energy Sector
22/11/2022 NdPr for Magnets Critical Forecast supply gap emerging by 2030 represents in excess of 10 Nolans Projects Component in Clean Energy Sector For personal use only ➔ Wood Mackenzie forecast an Accelerated Energy Transition (AET) 1.5°C scenario (Global net zero by 2050) requires significant a
Slide 10: NdPr Supply Gap
22/11/2022 Investment in new projects is required to NdPr Supply Gap meet demand requirements For personal use only New supply will lag significantly behind demand growth and only a handful of non-China NdPr projects will be in production in the next 5 years Tighter regulatory and policy controls wi
Slide 11: NdPr Resource Project Pipeline
22/11/2022 NdPr Resource Project Pipeline For personal use only NdPr Oxide Long Life High Capital High Value Intermediate Mixed RE Resource Constrained Feed into China Concentrate Mineral Early Exploration Country Risk Offshore Processing Feed into China Early Stage Intermediate Advanced Stage Appro
Slide 12: Offtake Update
22/11/2022 Offtake For personal use only Update (ASX:ARU) 11
Slide 13: Offtake
22/11/2022 Offtake Arafura is targeting 85% of Planned Production1 as binding offtake for FID (Binding Offtake Target). For personal use only … Offtake Discussion Group Location NdPr Oxide (tpa)2 % of Binding Offtake Target Secured Offtake (binding agreement) Offtake strategy aligned Hyundai & Kia K
Slide 14: Seeking Offtake & Supply Chain Achievement in these ESG Credentials
22/11/2022 SEEKING Offtake & Supply Chain ACHIEVEMENT IN THESE ESG CREDENTIALS Mine RE Extraction For personal use only RE Separation Sustainable producer of NdPr to align to Toll (Australia) “Green Procurement” strategy Processing Contract NdPr Oxide Enables access to a sustainable NdPr Metal Conve
Slide 15: Offtake & Link to Project Funding
22/11/2022 Offtake & Link to For personal use only Project Funding (ASX:ARU) 14
Slide 16: Funding Structure
Funding 22/11/2022 Structure Project Funding MMI Grant For personal use only Requirement Debt MLAs appointed, Société Générale and NAB seeking to arrange debt financing Some debt financing is being targeted through untied ECA funding and to the extent required additional MLA banks or via syndication
Slide 17: Australia NdPr feedstock to facilitate a diversified value chain
22/11/2022 Australia NdPr NdPr and NdFeB critical to energy transition feedstock to Energy transition linked to policy and demand drivers but likely to be disrupted by procurement of critical materials For personal use only facilitate a Maintaining leadership in the future economy requires diversifi
Slide 18: Contact Information
22/11/2021 Contact Information For personal use only Level 6, 432 Murray St, Perth WA 6000 34/119 Reichardt Rd, Winnellie NT 0820 +61 8 6370 2800 arafura@arultd.com www.arultd.com (ASX:ARU) 17
Slide 19: Long Life Asset
22/11/2022 Long Life Asset RESOURCES TONNES (m) RARE EARTHS TREO % PHOSPHATE P2O5 % NdPr ENRICHMENT % Geology For personal use only Measured 4.9 3.2 13 26.1 Indicated 30 2.7 12 26.4 Inferred 21 2.3 10 26.5 TOTAL 56 2.6 11 26.4 World class strategic As announced on 7 June 2017. 1% TREO cut-off grade.
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