Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Investor Presentation (January 2010)
33 slides from Arafura Rare Earths's investor presentation, Jan 12, 2010
Slide 1: Investor Presentation January 2010
For personal use only Investor Presentation January 2010
Slide 2: Disclaimer
Disclaimer For personal use only Important Notice This presentation contains certain statements which may constitute “forward‐looking statements.” Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance achievemen
Slide 3: Arafura Resources Limited
Arafura Resources Limited For personal use only Arafura is an Australian‐based mineral exploration and development company which listed on the Australian Securities Exchange in 2003. Our Vision is to be the pre‐eminent supplier of rare earths to the world and we will do this by: y developing the Nol
Slide 4: Corporate Structure
Corporate Structure (ASX: ARU) For personal use only As at 7 January 2010 Capital 259.2m shares; 15.5m Board/Employee options Market capitalisation (ASX:ARU closing price @ 7 Jan 2010) @ A$0.88 = ~A$228 million Cash (@ 31 December 2010) A$12.2 million Top shareholders ANZ Nominees1 33.7% ECE2 24.9%
Slide 5: Share price data
Share price data (ASX: ARU) For personal use only
Slide 6: Board & Management summary
Board & Management summary For personal use only Proven skills and experience taking projects from greenfields exploration to production: • Good blend of experience and skills. • Start‐up Directors / seed investors. • New Directors with relevant experience added. • Good blend of age distribution bet
Slide 7: Arafura Board
Arafura Board For personal use only Hon Ian Laurance AM Chairman Age 69 Ian Laurance is Chairman of the publicly listed property development company, Axiom Properties Limited (AXI). Ian represented the electorate of Gascoyne in the Western Australian Parliament for 14 years and at various times held
Slide 8: Arafura Board
Arafura Board For personal use only Alex Losada-Calderon Non-Executive Director Age 52 Dr Losada-Calderon is an independent consultant to East China Mineral Exploration & Development Bureau. Formally he was Vice- President of Exploration for Southwestern Resources Corp located in Canada. He has a Ph
Slide 9: Arafura Management
Arafura Management For personal use only Dr. Steve Ward Gavin Lockyer Steven Mackowski Richard Brescianini Brian Fowler Managing Director & CEO Company Sec & CFO GM - Project Development GM - Strategic Development Manager Sustainability Age 54 Age 42 Age 57 Age 46 Age 57 Holds PhD in Physical Has ov
Slide 10: Business Plan
Business Plan For personal use only To create shareholder value by: • focusing on the Nolans Rare Earths‐Phosphate‐Uranium Project. • Identifying other rare earth projects • JV or explore current projects in gold, base metals and iron‐vanadium (ongoing JV discussions)
Slide 11: Rare earths – demand growth, constrained supply
Rare earths – demand growth, constrained supply For personal use only BCC Research forecasts 7‐9% Compound Annual Growth Rate increase in global demand for rare earths over the next five years. Equates to overall increase of +60,000 tonnes c.f. supply increase of +40,000 tonnes.
Slide 12: Rare earths – prices forecast to rise significantly
Rare earths – prices forecast to rise significantly For personal use only BCC Research forecasts 20‐30% Compound Annual Growth Rate increase in rare earth prices over the next five years
Slide 13: Rare earths - global supply
For personal use only Rare earths - global supply • China currently supplies 95% of rare earths , Russia and India the rest. • China restricting supply through industry consolidation, quotas and tariffs. • New significant resources to supply the rest of the world in the near term are limited. • Araf
Slide 14: Rare earths - applications
Rare earths - applications For personal use only
Slide 15: Rare earths - consumption by application
Rare earths - consumption by application For personal use only RE Use by Application 2007 Forecast RE Use by Application 2014 Ceramics Ceramics 5% Phosphors 6% Phosphors Other Catalysts Glass 7% Other Catalysts 7% 6% 16% 7% 7% 19% Glass 10% Magnets Polishing Magnets 23% 11% 20% Polishing 13% Metal A
Slide 16: Arafura’s rare earths business structure
Arafura’s rare earths business structure For personal use only • Nolans’ current resource is sufficient to sustain production of 20,000 t of REO p.a for more than 20 years. • With further drill programmes, Arafura is confident Nolans has geological potential to expand to support increased production
Slide 17: Nolans Location
Nolans Location For personal use only • Central Australian location • No competing land use but • Not too remote from infrastructure – 5 km to gas line – 10 km to Stuart Highway – 60 km to rail line – 135 km north of Alice Springs – 1200 km north to Darwin – 1300 km south to Port Pirie
Slide 18: Nolans site design underway
Nolans site design underway For personal use only Initial Mining Area “North Zone” 500m
Slide 19: A globally significant JORC resource
A globally significant JORC resource For personal use only y Highly prospective deposit y Ample scope to grow resource base (open at depth and along strike) y Estimated initial mine life 20+ years, now planning further drilling with aim to increase resource base and confidence
Slide 20: Our Process
Our Process For personal use only Processing technology makes a successful rare earths company Arafura intellectual property developed to specifically exploit the Nolans deposit. Proven process from mine site to product through Demonstration Plant
Slide 21: Demonstration plant
Demonstration plant For personal use only Utilising the Heavy Media Separation Froth Flotation Utilising the expertise of ANSTO expertise of Bateman Litwin Rare Earth Processing Acid Bake Phosphoric Acid SX Rare Earth Carbonate Uranium Phosphoric Acid & CaCl2
Slide 22: Nolans rare earths mix
Nolans rare earths mix For personal use only Nolans is enriched in higher value rare earths. RARE EARTH REO Price 20091 NOLANS (US$/kg) CONTENT LIGHT REO Lanthanum $5.20 20.0% Cerium $3.95 48.2% Praseodymium $18.75 5.9% Neodymium $16.00 21.5% HEAVY REO Samarium $4.50 2.4% Europium $490.00 0.41% Gado
Slide 23: Superior rare earth mix – a competitive advantage
Superior rare earth mix – a competitive advantage For personal use only Relative REE Value (December 2009 Pricing) 14.00 $11.43 $12.18 12.00 $9.55 Lanthanum Oxide $8.21 Cerium Oxide 10.00 Praseodymium Oxide Neodymium Oxide 8.00 Samarium Oxide USD/kg Europium Oxide Gadolinium Oxide 6.00 Dysprosium Ox
Slide 24: Multi-commodity deposit
Multi-commodity deposit Nolans has the additional benefit of other non rare earth products for value For personal use only creation: phosphoric acid and uranium.
Slide 25: Valuation update as at November 2009
Valuation update as at November 2009 For personal use only
Slide 26: 2009 – key milestones
2009 – key milestones For personal use only Arafura used the tightness in capital markets to concentrate on refining the chemical process which will add value by anticipated lower Capex and reduce Opex costs. It also achieved the following key milestones: • Established strategic relationship with Ch
Slide 27: Moving forward – the next steps
Moving forward – the next steps For personal use only • Complete bankable feasibility study. • Refine the debt/equity structure. • Actively seek appropriate strategic partners and financiers • Extensive drilling program to increase confidence and define resource. • JV other assets.
Slide 28: Development timeline – looking forward
Development timeline – looking forward For personal use only
Slide 29: Corporate Information
Corporate Information For personal use only Registered Office Arafura Resources Ltd Level 5, 16 St Georges Terrace Perth WA 6000 Telephone +61 8 6210 7666 Facsimile +61 8 9221 7966 Share Registry Security Transfer Registrars 770 Canning Highway Applecross WA 6153 Telephone +61 8 9315 2333 Facsimile
Slide 30: Thank You
For personal use only Thank You
Slide 31: Steve Ward – Personal Details
Steve Ward – Personal Details For personal use only Born: Lowestoft, England, UK Age: 54 Nationality: Dual, Australian and British Residence: Perth, Australia (for last 10 years) Family: Married, Wife Australian, Daughter (24 yrs) and Son (19 yrs)
Slide 32: Steve Ward – Professional Details
Steve Ward – Professional Details For personal use only DATE COUNTRY PROFESSIONAL DETAILS 1973‐1979 United Kingdom PhD and BsC (Hons) in Chemistry from University of Nottingham 1980‐1999 Tioxide Group Ltd (Subsidiary of ICI PLC) titanium pigment manufacturer – See below 1980‐1988 Australia Operation
Slide 33: Steve Ward – Relevant Experience
Steve Ward – Relevant Experience • Chemical and mining background For personal use only • Substantial operational and technical management experience • Major project development and start‐up experience • Global sales and marketing experience • Experience in substantial fund raising activities • Exte
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