Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — 24th Annual Mineral Sands and Rare Earths Conference 2024
13 slides from Arafura Rare Earths's conference presentation, Mar 19, 2024
Slide 1: Mineral Sands and Rare Earths Conference Presentation
ASX ANNOUNCEMENT MINERAL SANDS AND RARE EARTHS CONFERENCE PRESENTATION 19 March 2024 Arafura Rare Earths Limited (ASX: ARU) (“Arafura” or the “Company”) is pleased to attach a copy of a presentation delivered by Managing Director and Chief Executive Officer, Mr Darryl Cuzzubbo, at the 24th Annual Mi
Slide 2: Recent developments in rare earths markets and the Nolans Project
ASX: ARU 19 March 2024 Mineral Sands and Rare Earths Conference 2024 Arafura Rare Earths For personal use only Recent developments in rare earths markets and the Nolans Project Darryl Cuzzubbo Managing Director and CEO
Slide 3: Disclaimer
Disclaimer This presentation is dated 19 March 2024 and (unless otherwise stated). Reliance should been checked or verified by Arafura Rare information (in relation to capital cost of has been prepared by Arafura Rare Earths not be placed on information or opinions Earths. A$1,590 million) is extrac
Slide 4: Corporate Summary
Arafura CORPORATE SUMMARY Explorer Developer Project Execution For personal use only Market Cap Share price A$601m1 A$0.231 Shares on issue Cash Why the Nolans Project? • NdPr is critical to the electrification economy and a lower carbon future 2,310m A$67m2 • essential for EVs and wind turbines • <
Slide 5: Single point of failure risk
Single point of failure RISK For personal use only ~90% of global NdPr is processed in China Japan has secured significant proportion of ex- China NdPr for stable feedstock1 ~10% Rest of world Illustrative purposes only 19 March 24 4 1 Refer Lynas ASX announcement 7 March 2023 “JARE EXTENDS SUPPORT
Slide 6: Nolans Binding Offtake Target
Nolans BINDING OFFTAKE TARGET4 Focus on strategic value and equity investment For personal use only NDPR OXIDE % OF BINDING OFFTAKE DISCUSSION GROUP LOCATION (TPA)1 OFFTAKE TARGET SECURED OFFTAKE (BINDING AGREEMENT) Hyundai & Kia Korea 1,500 40% Siemens Gamesa RE Germany 520 14% OFFTAKE UNDER DISCUS
Slide 7: Funding Update
Funding UPDATE Indicative Senior Debt Facilities For personal use only Conditional EFA and NAIF Debt Facility Approvals Agency Amount Description EFA US$125m Senior Debt Facility NAIF US$100m(1) Senior Debt Facility NAIF US$33m(2) Cost Overrun Facility EFA Up to US$75m ECA Covered Tranches and COF U
Slide 8: Construction Ready
Construction READY Once financed, we are ready to go For personal use only • Access to existing infrastructure • >$40m spent on site works, enabling construction works to commence post FID • Attracting highly experienced leadership team supported by KBR and Hatch • Project well defined >60% process
Slide 9: Nolans: Unique Investment Case
Nolans: UNIQUE INVESTMENT CASE ▪ Arafura has to potential to be the next Lynas or MP Materials with significant value uplift from entering production For personal use only ▪ Nolan’s is a 1) large, high-grade resource 2) unique ore to oxide producer 3) located in a Tier 1 mining jurisdiction 4) singl
Slide 10: ESG Commitments
ESG COMMITMENTS • Trusted global leader and supplier of choice for responsibly mined and processed rare earth products For personal use only • Helping our customers deliver clean and efficient technologies • Delivering positive intergenerational economic, environmental and social benefits in partner
Slide 11: In Conclusion
In CONCLUSION For personal use only ✓ CONSTRUCTION CONSTRUCTIONREADY READY– early – early sitesite works works complete complete ✓ FINANCE FINANCE – targeting – senior senior debt of up debt of US$775m to US$775m ✓ CUSTOMERS – maturing offtake and strategic equity OPPORTUNITY – right timing to meet
Slide 12: Contact
ASX: ARU For personal use only Contact Level 6, 432 Murray St Perth WA 6000 PO Box 5773 St Georges Terrace Perth WA 6831 T: +61 8 6370 2800 E: arafura@arultd.com (All corporate and general enquiries) E: nolansproject@arultd.com (Nolans Project enquiries only)
Slide 13: Appendix 1: Pure-play rare earth peer benchmarking
Appendix 1: Pure-play rare earth peer benchmarking For personal use only Mineral Resources NdPr enrichment Contained NdPr Company Project Location Stage Product EV (A$m)1 TREO grade (%) NdPr grade(%)2 Source(s) (Mt) (%) NdPr (Mt) production Measured: 9.0 Measured: 3.2% Measured: 26.1% Measured: 0.84
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