Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — Lynas — Shareholder Meeting (November 2018)
23 slides from Lynas Rare Earths's shareholder meeting presentation, Nov 27, 2018
Slide 1: Annual General Meeting 2018
For personal use only LYNAS CORPORATION ANNUAL GENERAL MEETING 2018 27 November 2018 1
Slide 2: 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 3: Lynas is a proven and profitable producer of specialty Rare Earth Materials
Lynas is a proven and profitable producer of specialty Rare Earth Materials Key Metrics For personal use only ASX Ticker LYC ISIN AU000000LYC6 Shares Outstanding as at 26 665,681,660 November 2018 Cash Balance (30 September A$65.8M 2018) Debt as at 26 November 2018 US$150m JARE US$15.24m Conv Bond •
Slide 4: Delivering value
For personal use only Delivering value • 2011: The investment world discovers LYNAS ENTERPRISE VALUE Rare Earth 4000 • 2012: Lynas faces regulatory hurdles in 3500 Malaysia 3000 • 2013-2016: High debt, low cash AUD millions 2500 • US $425m debt 2000 Debt • A $4.1m operating cash flow Market Cap 1500
Slide 5: Record Results in FY18
Record Results in FY18 NPAT (A$m) Production Volume REO t Record Profit 20,000 17,753 For personal use only 60 18,000 16,003 50 16,000 NPAT $53.1m 14,000 12,631 40 12,000 30 EBIT $81.0m 10,000 8,799 8,000 20 EBITDA $121.9m 6,000 10 4,000 2,000 3,896 5,223 5,444 0 2,258 0 FY17 FY18 -10 FY15 FY16 FY17
Slide 6: Our Sustainability Plan
Our Sustainability Plan For personal use only Financial Supply Chain Sustainable Full mine-to- balance sheet magnet Profitable traceability operations R&D Environment Successful Minimise air and innovative Lynas 360⁰ water emissions products and Sustainability Manage/develop applications solid resid
Slide 7: Lynas NEXT: Key achievements
Lynas NEXT: Key achievements ✓ For personal use only Productivity 600 tonnes per month ahead of schedule in September 2018 Improvements Improved recoveries, Cracking & Leaching efficiencies, Product Quality ✓ Resource and Reserves Upgraded Mt Weld Resources and Reserves Statement confirmed 25+ year
Slide 8: Lynas NEXT: How we did it
Lynas NEXT: How we did it Not just on time and on budget For personal use only • Executing while still producing • Delivered by an in-house Project Team with intimate understanding of the process • Clearly understanding what is needed and New design off-gas ducting that will last what is not • Enhan
Slide 9: Serving high-growth markets with Sustainable Rare Earths
Serving high-growth markets with Sustainable Rare Earths • Reliable supplier of high quality products For personal use only • Growing in high-value segments • Ensuring sustainability with Life Cycle Assessments from mine to magnet “Lynas is perceived by end users as THE sustainable supplier they nee
Slide 10: A Virtual Tour of our operations
For personal use only A Virtual Tour of our operations 10
Slide 11: Mt Weld: An assured supply of rare earth concentrate
Mt Weld An assured supply of rare earth concentrate For personal use only Exploration Mine Planning Mining Crushing, Screening, Blending Grinding Rougher Flotation Cleaner Flotation Thickening Filtration Bagging Transport 11
Slide 12: Mt Weld Mining & Processing
Mt Weld Mining & Processing Exploration, Mining and Processing • 101 staff including 12 geologists and engineers For personal use only • 24/7 operation processing ore mined on a campaign basis • Innovations in water management including dissolved air flotation, ultrafiltration, reverse osmosis and m
Slide 13: Latest developments at Mt Weld
For personal use only Latest developments at Mt Weld Dissolved Air Flotation water treatment technology to remove solids and algae from recycled water prior to further treatment Deslime testing as part of our metallurgical R&D program to improve recoveries Stack Cell pilot scale unit used to test an
Slide 14: Lynas Malaysia
For personal use only 14 Lynas Malaysia
Slide 15: Lynas Central Laboratory (CLAB)
Lynas Central Laboratory (CLAB) World Class Rare Earth Laboratory • High-tech, high volume quick turnaround Laboratory For personal use only • Servicing full value chain in Malaysia 24/7 • 53 staff including 38 Chemists (50 Malaysian, 3 expats) • 1,500 samples/day; 15,000 analytes/day • Pioneering R
Slide 16: Engineering and Maintenance
Engineering and Maintenance Safe performance of equipment, Delivery of improvement and expansion projects • 24/7 support for over 10,000 items of equipment For personal use only • 115 staff incl. 19 Engineers (100% Malaysian) • Continuous improvement in safety, environment, equipment, reliability an
Slide 17: Cracking and Leaching (C&L)
Cracking and Leaching (C&L) Converting Rare Earth Concentrate to RE Sulphate Solution For personal use only • 24/7 operation producing Rare Earth Sulphate solution feed for SX separation • 105 staff incl. 4 Engineers (100% Malaysian) • Developing new RE processing capability • 4 x 60m Gas Fired Rota
Slide 18: Offsite, Utilities and Residues (OUR)
Offsite, Utilities and Residues (OUR) Control of discharge water quality, Safe storage of residues • 24/7 operation delivers plant wide services, Waste Water Treatment & Residue Management For personal use only • 62 staff incl. 4 Chemists (61 Malaysian, 1 expat) • Multi-stage waste water treatment p
Slide 19: Solvent Extraction (SX)
Solvent Extraction (SX) Separating and Purifying Rare Earth in Solution • 76 staff incl. 6 Chemists/Engineers (74 Malaysian, 2 For personal use only expats) • Upstream Separation - 136 stages (mixer settlers) in 4 circuits, heavy REs separated from light REs • Downstream Separation - 500 stages in 5
Slide 20: Product Finishing (PF)
Product Finishing (PF) Production and Quality Control • 130 staff incl. 4 Metallurgists/Engineers (128 Malaysian, 2 expats) For personal use only • Processing RE Chloride to final product in carbonate or oxide form to product specification • Product range expanded from 5 to 13 products • Developed L
Slide 21: Malaysian Regulatory Update
Malaysian Regulatory Update • In October 2018, a Committee was formed to review and evaluate aspects of Lynas Malaysia’s operations: For personal use only • Safety, health and environment performance • Management Ongoingofcommunication residues Continued compliance BAU licence renewals • Impactswith
Slide 22: Lynas seeks to be an excellent corporate citizen
For personal use only Lynas seeks to be an excellent corporate citizen Ongoing communication Continued compliance BAU licence renewals with government and with licence conditions and variations to licence regulators & regulations conditions Enhancing the lives & Zero harm to our people, Being part o
Slide 23: Visit our Investor Centre
For personal use only Visit our Investor Centre at: www.lynascorp.com 23