Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Shareholder Meeting (November 2018)
27 slides from Arafura Rare Earths's shareholder meeting presentation, Nov 22, 2018
Slide 1: Accelerating Towards Final Investment Decision
For personal use only Arafura Resources Limited Accelerating Towards Final Investment Decision November 2018 AGM Presentation
Slide 2: Important Notice - Disclaimer
Important Notice ‐ Disclaimer For personal use only 2 This presentation has been prepared by Arafura Resources Limited (Arafura, Arafura Resources 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 conju
Slide 3: Agenda
Agenda For personal use only 3 1. NdPr Market Update 2. Project Review 3. Timeline Arafura Resources Limited (ASX:ARU) November 2018
Slide 4: NdPr Market Update
For personal use only NdPr Market Update Arafura Resources Limited (ASX:ARU) November 2018
Slide 5: China Becoming a Net Importer of NdPr
China Becoming a Net Importer of NdPr For personal use only 5 • China’s domestic NdPr consumption will increase NdPr Oxide China by over 30% in the next 5 years as it pursues clean 60,000 energy objectives and global leadership in EV Tonnes 40,000 manufacturing 20,000 • Supply reforms, industry cons
Slide 6: China's NdPr Supply – Capital Constrained?
China’s NdPr Supply – Capital Constrained? For personal use only 6 • China’s growth in production • From 1980 to 2000 China’s rare earth production increased by an average 14% annually • From 2005 to 2011 China’s NdPr production increased by an average of 4.5% annually • 2011 to 2015, China’s NdPr p
Slide 7: Nolans Project Review
For personal use only Nolans Project Review Arafura Resources Limited (ASX:ARU) November 2018
Slide 8: Project Review
Project Review For personal use only 8 1. Configuration 2. Permitting/Regulatory Approvals 3. Flowsheet Piloting 4. Definitive Feasibility Study 5. Sales & Marketing 6. Funding Arafura Resources Limited (ASX:ARU) November 2018
Slide 9: 1. Configuration
For personal use only 1. Configuration Arafura Resources Limited (ASX:ARU) November 2018
Slide 10: Configuration Confirmed
Configuration Confirmed For personal use only 10 Arafura Resources Limited (ASX:ARU) November 2018
Slide 11: 2. Approvals
For personal use only 2. Approvals Arafura Resources Limited (ASX:ARU) November 2018
Slide 12: Approvals
Approvals For personal use only 12 Permitting/Regulatory Approvals – expected completion first half 2019 • Environmental Approval • Completed for NT EPA and Commonwealth EPBC • Water Extraction Licence • Application submitted with regulator awaiting confirmation of NT legislative changes prior to li
Slide 13: 3. Pilot Program
For personal use only 3. Pilot Program Arafura Resources Limited (ASX:ARU) November 2018
Slide 14: Flowsheet Piloting Nearing Completion
Flowsheet Piloting Nearing Completion For personal use only 14 Phase 1 Phase 2 Phase 3 Phase 4 Phases 5 & 6 Phase 7 Beneficiation Phosphate Extraction Bulk Pre-Leach Acid Bake Rare Earth Processing Rare Earth Separation • 5,000 kg high- • Merchant grade • 2,000 kg pre-leach • Successful use of • Pha
Slide 15: 4. Definitive Feasibility Study
For personal use only 4. Definitive Feasibility Study Arafura Resources Limited (ASX:ARU) November 2018
Slide 16: DFS Nearing Completion
DFS Nearing Completion For personal use only 16 • Definitive Feasibility Study on track for reporting end of 2018 • Activities with independent expert advice from specialist consultants Process plant, Mining planning and Ore Tailings storage facility design, infrastructure and lead Reserves geotechn
Slide 17: Site Layout
Site Layout For personal use only 17 Arafura Resources Limited (ASX:ARU) November 2018
Slide 18: Mine Site
Mine Site For personal use only 18 • Pit optimisation and mine planning nearing completion • Ore Reserves expected in coming weeks Arafura Resources Limited (ASX:ARU) November 2018
Slide 19: Processing Site
Processing Site For personal use only 19 • RSF now staged allowing easier rehabilitation Arafura Resources Limited (ASX:ARU) November 2018
Slide 20: 5. Sales & Marketing
For personal use only 5. Sales & Marketing Arafura Resources Limited (ASX:ARU) November 2018
Slide 21: Offtake
Offtake For personal use only 21 • Alignment with offtake and strategic partners critical to funding to remove some market risk • Offtake contracts need to be engineered to manage downside price risk • Phase 7 (separation) piloting to provide additional material for qualification • Customers seeking
Slide 22: 6. Funding
For personal use only 6. Funding Arafura Resources Limited (ASX:ARU) November 2018
Slide 23: Funding New Supply Is Challenging
Funding New Supply Is Challenging For personal use only 23 • NdPr market is niche, research and data is limited, no commodity exchange • Price volatility, historically not demand‐supply driven • China has a legacy position as the dominant producer • Project debt and equity financiers have a perceive
Slide 24: Funding – Our Targets For Success
Funding – Our Targets For Success For personal use only 24 • Accelerating discussions with offtake and strategic partners to remove some market risk • Capital equipment supply and construction contracts linked to ECA funding • Successful completion of flowsheet piloting to reduce materials handling,
Slide 25: Targets
For personal use only Targets Arafura Resources Limited (ASX:ARU) November 2018
Slide 26: Timeline and Targets
Timeline and Targets For personal use only 26 Arafura Resources Limited (ASX:ARU) November 2018
Slide 27: Thank You
For personal use only Thank You Arafura Resources Limited (ASX:ARU) November 2018
Arafura Resources — Shareholder Meeting (November 2018) on 6ix