Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Mines & Money Australia Conference 2012
18 slides from Arafura Rare Earths's conference presentation, Oct 16, 2012
Slide 1: Arafura Resources Limited – Mines & Money Australia Conference
For personal use only Arafura Resources Limited Mines & Money Australia Conference 16 October 2012 – Chris Tonkin, CEO
Slide 2: Disclaimer – Important Notice
Disclaimer Important Notice For personal use only This presentation contains certain statements which may constitute “forward-looking statements”. Such statements are only expectations or beliefs and are subject to inherent risks and uncertainties which could cause actual values, results or performa
Slide 3: An Emerging Rare Earths Producer
An Emerging Rare Earths Producer Arafura Resources is an For personal use only emerging rare earths producer with an advanced Australian development project – the Nolans Project ASX Code ARU Shares on offer 396 million Options 11.5 million Market Cap@17.0c $67.3 million 1-year range 14 - 69 cents Ca
Slide 4: Rare Earths – applications and market
Rare Earths – applications and market For personal use only Green technology sector will For most rare earths, the pricing outlook is positive – strong demand and tight supply drive Arafura’s REO sales Material supply shortfall expected in Hybrid vehicles selected REO products, such as Didymium Wind
Slide 5: Nolans Project Base Case
Nolans Project Base Case For personal use only The Nolans Project is one Ore of the most advanced rare earths development Mineral Concentrate projects in the world Rare Earth The recent Project Update Intermediates (Carbonate) established a Base Case of: Rare Earth Oxides Mine and concentrator 20,00
Slide 6: Nolans Project – key features
Nolans Project – key features For personal use only JORC-compliant rare earths resource recently expanded by 52% to 1.22 million tonnes contained REO Low resource risk Feasibility Study well advanced: Extensive testwork completed and process flowsheet developed over 7 years Robust economics: Full ca
Slide 7: World-scale, strategic resource
World-scale, strategic resource For personal use only RARE TONNES TONNES TONNES TONNES RESOURCES EARTHS (million) REO P2O5 U3O8 REO % Measured 4.3 3.3 144,000 572,000 1,120 Indicated 21 2.6 563,000 2,610,000 4,090 Inferred 22 2.4 511,000 2,220,000 3,610 TOTAL 47 2.6 1,217,000 5,410,000 8,830 1% REO
Slide 8: Customer qualified REO products
Customer qualified REO products For personal use only Arafura’s separated REO products Produced four separated REO products to 99% purity In-specification final REO products verified by customers In the process of finalising production of a separated Lanthanum Oxide product to 99% LOI and MOU signed
Slide 9: Regulatory and community support
Regulatory and community support For personal use only Clearly defined regulatory frameworks in Northern Territory and South Australia Whyalla Processing Complex has Major Project status from South Australian government Advanced environmental studies at both sites – no major issues identified Commun
Slide 10: Project Update validates robust economics
Project Update validates robust economics For personal use only Comprehensive Project Update released August 2012 Provides transparency for investors and other stakeholders Nolans Project Base Case confirms robust project economics over 20 years: — NPV of A$4.3 billion (10% discount rate) — IRR of 3
Slide 11: Base Case financial summary
Base Case financial summary For personal use only Sales Revenue US$ million per annum REO 20,000 tonnes (less Royalty and Selling Expenses) 1,124 Uranium 15 Other 16 Total Revenue 1,155 A$ million per annum Total Revenue @ US$1 = A$1.026 1,125 Operating Expenditure Nolans Bore Mine and Concentrator
Slide 12: Sensitivity of Base Case NPV
Sensitivity of Base Case NPV For personal use only Page 12
Slide 13: Independent Expert's Report
Independent Expert’s Report For personal use only IER validates advanced stage and significant valuation upside of the Nolans Rare Earths Project Independent Expert’s utilisation of NPV methodology validates the advanced nature of the Project IER key findings: – Estimated value of Nolans Project = A
Slide 14: Funding plan in place – multiple options
Funding plan in place – multiple options For personal use only Recent Project Update and IER enhance funding options Short Term Medium – Long Term - $10m placement to ECE - Strategic partners - $22m R&D Claim* - Equity JV Discussions - Existing Cash Reserves - Off take ongoing - Capital raising - De
Slide 15: Funding required for 2012/13
Funding required for 2012/13 For personal use only Project Refinement Engineering Other Conversion to Ore Reserve Detailed engineering EIS submissions Demonstration Plant Transport and logistics Sales and supply contracts Operation Strategic partners Integrated Pilot Plant REO purification to custom
Slide 16: Nolans Project – strong investment case
Nolans Project – strong investment case For personal use only Nolans Rare Earths Project – world scale and well advanced Positioned to supply 10% of global rare earths products this decade Recent Project Update confirms robust economics Independent Expert’s Report – validates significant valuation u
Slide 17: Experienced Board and Management
Experienced Board and Management For personal use only Ian Kowalick – Non-Executive Chairman Appointed 1 February 2012. Ian has worked Gavin Lockyer – Company Secretary & in technical and project consulting, economic CFO and business analysis for resource ,banking Over 20 years’ international experi
Slide 18: Arafura Resources Limited contact details
Arafura Resources Limited Level 5, 16 St Georges Terrace Perth WA 6000 Australia For personal use only Tel: +61 8 6210 7666 arafura@arafuraresources.com.au www.arafuraresources.com.au
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