Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Mining the Territory Conference 2020
31 slides from Arafura Rare Earths's conference presentation, Nov 12, 2020
Slide 1: ASX Announcement: Mining the Territory Presentation
ASX ANNOUNCEMENT MINING THE TERRITORY PRESENTATION 12 November 2020 For personal use only Arafura Resources Limited (ASX:ARU) (“Arafura” or the “Company”) is pleased to attach a copy of the presentation for the Mining the Territory Conference. The Mining the Territory Conference is Northern Australi
Slide 2: Nolans Project – Mining the Territory
10/11/2020 Nolans For personal use only Project Mining the Territory 12 November 2020 (ASX:ARU) 1
Slide 3: For personal use only
10/11/2020 For personal use only 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 conjunction with and full
Slide 4: Nolans Project
10/11/2020 Nolans For personal use only Project (ASX:ARU) 3
Slide 5: Corporate Snapshot
10/11/2020 Corporate Nolans world class NdPr project – Capital Structure Snapshot DFS completed February 2019 ASX Code ARU For personal use only NdPr is the key input for high ASX Share Price (9 November) $0.10 performance NdFeB permanent Shares on Issue 1,168m magnets Market Capitalisation $116.78m
Slide 6: Nolans NdPr Project
10/11/2020 Nolans NdPr Project Globally Strategic For personal use only 100% Australian Domiciled Ore to Oxide at single site (ASX:ARU) As announced on 16 March 2020 5
Slide 7: Project Location
10/11/2020 Project Location Located in the Northern Territory, For personal use only 110km from Alice Springs (ASX:ARU) 6
Slide 8: ESG Priorities
10/11/2020 May 2018 The Australian Extensive community and stakeholder consultation ESG Priorities Government approved the Project Alignment with Global For personal use only Waste management plan tailings and residue facility Standards Sustainability policy and Assessing impact from mining, framewo
Slide 9: Progressive Rehabilitation
10/11/2020 Progressive General arrangement of the final RSF design Rehabilitation For personal use only Waste streams generated within the process plant disposed in RSF, a purpose built, long- term, earth fill, lined containment facility. The RSF footprint has been designed for the entire LOM and wi
Slide 10: Robust Economics
10/11/2020 Robust Economics DFS in 2019 and Ore Reserves updated 2020 For personal use only Capital cost A$1026m Low cost producer at US$23.71/kg NdPr (current price US$52.02/kg*) Costs include ESG compliance 39-year mining inventory with expansion potential Only Australian NdPr- focused project tha
Slide 11: Economic Impact on Central Australia
10/11/2020 Economic Impact on For personal use only Central Australia (ASX:ARU) 10
Slide 12: Economic & Cost Benefit Impacts
10/11/2020 Economic & Cost Benefit For personal use only $1.01 bn $200 m** Local content $2.3 bn Impacts spending of of capital expenditure over average annual operation 20% of taxes and royalties paid by the three years of expenditure per in construction project to Northern construction as annum in
Slide 13: Job Creation during Construction & Operations
10/11/2020 Job Creation during Construction & Operations For personal use only Territory Benefit Plan developed Includes Australian Industry Participation Plan Minimum 39-year operational life Local and indigenous business involvement and support $200 million annual spend Employing Territorians 28
Slide 14: Opportunities for Aboriginal Territorians
10/11/2020 Opportunities for For personal use only Aboriginal Territorians Indigenous Engagement Strategy developed to maximise opportunities and benefits for Anmatyerr traditional owners and other Aboriginal people in the project’s operational area Native Title Agreement embodies commitments and wi
Slide 15: ICN Gateway
10/11/2020 ICN Gateway For personal use only Allows parties to follow the release of the work packages Express interest to be considered for tender Review package awards 1,224 current expressions of interest ICN Gateway is a key to the Project tendering process nolansproject.icn.org.au (ASX:ARU) 14
Slide 16: Critical Minerals Supply – a Global Issue
10/11/2020 Critical Minerals Supply – a Global For personal use only Issue (ASX:ARU) 15
Slide 17: The Nolans NdPr Project
10/11/2020 The Nolans NdPr Project Rare Earths contains all the Rare Earths but is particularly enriched in the For personal use only Rare Earths are Critical Minerals. They are essential to the economic ‘Magnet Feed’ Rare Earths NdPr wellbeing of the world’s major and emerging economies. Rare earth
Slide 18: Global Supply Chain
Global Supply Chain 10/11/2020 Ore Concentrate Oxide Metal Alloy Magnet Component EV For personal use only Market Value x 10x 100x 1000x CHINA Arafura’s Alternative Supply Chain China currently exerts control over Arafura plans to produce Oxide in Nolans offtake strategy focused on Governments aroun
Slide 19: Rest of World's Critical Minerals Initiatives
10/11/2020 Rest of World’s 2050 NET-ZERO 2060 CARBON EMISSIONS NEUTRAL TARGET TARGET Critical Minerals Europe multiple initiatives to remove China has new 5- year plan with Initiatives materials supply emphasis on For personal use only risks for future renewables, e- deployment of low mobility & car
Slide 20: Australia's Critical Minerals Initiatives
10/11/2020 Australia’s 1 Critical Minerals MARCH 2019 For personal use only Austrade Australian Critical 2 Minerals Prospectus and Initiatives NOVEMBER 2019 NAIF-EFA co-investment barriers Australia’s Critical Minerals Strategy 3 lifted NOVEMBER 2019 EFA mandate via $4.4 bn 4 Defence Export Facility
Slide 21: Verified Supply Chain
10/11/2020 Aligned with Customer Economic Benefits to Sustainable Waste Management Verified Supply Chain Community Production Certainty Needs For personal use only MOU with Source Certain International to deliver a verified 1 Arafura RE NdPr Oxide 2 Metal NdPr Metal 3 NdFeB Magnet 4 Magnet OEM suppl
Slide 22: Nolans a Strategic Resource
10/11/2020 Nolans a Strategic Globally strategic and 100% Australian domiciled Sound project economics with 39-year mine life Resource Ore to oxide at single site with approved waste For personal use only management plan Nolans aims to supply Phosphoric acid product places Nolans in a unique 5-10% o
Slide 23: Project Financing
10/11/2020 Project For personal use only Financing (ASX:ARU) 22
Slide 24: Project Funding Strategy
10/11/2020 Project Funding Strategy Arafura looking to secure A$1026m to meet CAPEX requirements for the Nolans project For personal use only Potential sources of funding include equity, debt, JV and/or project selldown with a strategic investor DFS completion, environmental approval and ML grant ar
Slide 25: Targeted Funding Structure
10/11/2020 Targeted Funding Offtakers Structure For personal use only ECA Loans/ ECA debt will be Guarantees Nolans Project critical but not the entire funding solution NAIF Commercial Debt EFA & Other Equity Portfolio of funding Instruments sources Offtake, debt and Strategic Equity strategic equit
Slide 26: Current & Future Focus
10/11/2020 Current & Future For personal use only Focus (ASX:ARU) 25
Slide 27: 2020 - Getting Nolans Shovel Ready
10/11/2020 2020 - Getting Nolans Shovel Ready Native Title Execution For personal use only Agreement Readiness Programs Mining Licence DFS & Offtake & Project Piloting Funding Federal Major Updated Life Ore to Discussions Project Status of Mine Oxides IN PROGRESS Federal & NT Appointment of KBR Envi
Slide 28: 2020 and Beyond - Current Focus
10/11/2020 2020 and Beyond - Current Focus For personal use only Prioritising project Provision of sample Escalate engagement Continued dialogue work streams against product & advancing with financiers & with Australian & other cash conservation terms sheets with end financial advisors for governmen
Slide 29: Indicative Production Timeline
10/11/2020 Indicative Production Timeline For personal use only Targeting Front-End Engineering & Design (FEED) to be fully funded prior to commencement Timeline subject to change due to impact by COVID-19 on funding and offtake activities Execution Early Contractor Enabling Works Construction Produ
Slide 30: Contact Information
10/11/2020 Contact Information For personal use only Level 6, 432 Murray St Perth WA 6000 Australia +61 8 6370 2800 arafura@arultd.com www.arultd.com (ASX:ARU) 29
Slide 31: Long Life Asset – NdPr rich & open at depth
10/11/2020 Long Life Asset – NdPr rich & open at depth For personal use only RESOURCES TONNES (m) RARE EARTHS TREO % PHOSPHATE P2O5 % NdPr ENRICHMENT % 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 As announced on 7 June 2017. 1% TREO cut-off grade. N
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