Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Investor Presentation (March 2008)
17 slides from Arafura Rare Earths's investor presentation, Mar 11, 2008
Slide 1: Arafura Resource Limited Investor Presentation
For personal use only Arafura Resource Limited Investor Presentation Alistair J Stephens Managing Director March 2008
Slide 2: Important Notice
Arafura Resources 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 ach
Slide 3: Nolans project location
Nolans project location For personal use only Nolans project 135 km north of Alice Springs 5km to gas line 10km to Stuart Highway 15km to Aileron Roadhouse 60 km to rail line 1200 km to Darwin
Slide 4: Resource
Nolans Resource For personal use only 18.6 mt of indicated & Inferred resources - JORC standard 577,000 tonnes REO (3.1%) and 2.1mt P2O5 (14%) Only drilled to 100m below surface – open at depth Current drilling looking for the lateral closure – still open along strike Is exposed at surface – no expe
Slide 5: Project flowsheet
Nolans project flowsheet For personal use only
Slide 6: Heavy media separation (HMS)
Heavy media separation (HMS) For personal use only 2007 test work returned positive results • 30% rejection of waste and 95% recovery of REO and Phosphate • Upgrades the resource from 3.1% REO to a process feed grade of 4.2% Pilot plant trials currently 50% complete • Initial results are replicating
Slide 7: Capital costs
Nolans capital costs For personal use only PFS Capital costs accurate to ±30% Equipment costs ±30% AUD$ million Mine site capital costs - mine, HMS and site offices 75 Processing plant* 215 Total 290 Direct costs ±30% Civil, concrete, pipes, electrical etc 160 Indirect costs ±30% EPCM 90 First fill
Slide 8: Operating costs
Nolans operating costs For personal use only PFS Operating costs accurate to ±30% AUD$ million per annum Administration, mining and transport, and labour 50 Chemicals 150 Power and maintenance 50 Sub-total operating costs 250 Transport of imported chemicals 100 Excludes royalties or corporate costs
Slide 9: Revenues – at March 2008
Nolans revenues – at March 2008 For personal use only Production per Current price Total revenue annum (tonnes) ($US) US$ million Rare earths 20,000 *15,000/tonne 300 Phosphoric acid 150,000 1,000/tonne 150 Calcium chloride 400,000 100/tonne 40 Uranium 150 75/lb 25 Total revenue US$515 Total Revenue
Slide 10: Project timeline
Project timeline For personal use only Project Schedule Activity 2008 2009 2010 2011 2012 2013 Submit NOI Mine Studies for Mine approval Mine approval Pilot Plant Studies Definitive Feasibility Study Process Plant Approval Pre-ordering & Construction Production 50% Production 75% Production 100%
Slide 11: Opportunities
Nolans opportunities For personal use only Increase in resources Drilling has identified more mineralisation yet to be classified as resources Strategy = resources available for future production expansion to meet market growth Heavy media separation optimisation Improve waste rejection, optimise fe
Slide 12: Nolans markets
For personal use only Nolans markets
Slide 13: Rare earth applications in energy production and efficiency
ARAFURA ENERGY PRODUCTION Petroleum Refining Lanthanum oxide is used in petroleum cracking catalysts in the ol refining industry. High-powered Electric Motors Neodymium, Dysprosium and Terbium are used in the strongest permanent magnets known. Electric motors use these magnets to achieve | ‘superior
Slide 14: Market opportunities
Nolans market opportunities For personal use only Rare earths are in demand 1. Chemical catalysts Market outlook moderately strong at 5% to 10% per annum 2. Magnets Strong growth in the hybrid car market – wind power is the sleeper Current production of NdFeB = 50,000t to double to 100,000t by 2010
Slide 15: Project flow-on benefits
Nolans project flow-on benefits For personal use only Regional A stronger resources sector in the Northern Territory Indigenous benefits and regional business opportunities National Synergies with chemical production – growing on gas Helping Australia to climate ready the world Global Fostering prod
Slide 16: Funding strategy - options
Nolans funding strategy - options For personal use only Arafura key stone investor(s) 1. Strategic equity holders to assist in attracting further investment Nolans Joint Venture 1. A partner to support the Bankable Feasibility Study 2. Looking for a significant contribution to capital in return for
Slide 17: Arafura Resource Limited
For personal use only Arafura Resource Limited Investor Presentation Alistair J Stephens Managing Director March 2008 end
Arafura Resources — Investor Presentation (March 2008) on 6ix