Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — The 6th International Rare Earth Conference, Hong Kong 2010
27 slides from Lynas Rare Earths's conference presentation, Nov 10, 2010
Slide 1: The Lynas Story
The Lynas Story For personal use only THE 6TH INTERNATIONAL RARE EARTH CONFERENCE Hong Kong 9-11 9 11 November 2010
Slide 2: Disclaimer
Disclaimer For personal use only • The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe
Slide 3: Prices are returning to historic levels
Prices are returning to historic levels For personal use only HISTORIC SUPPLY, SUPPLY DEMAND AND PRICING Tonnes REO US$/Kg US$61.96/kg 8 Nov 2010 US Inflation adjusted Actual Price 3
Slide 4: Limited price drop in 2009 to Chinese cash cost of production
Limited price drop in 2009 to Chinese cash cost of production For personal use only PRICE DRIVERS 2009 Tonnes REO US$/Kg • Demand sharply dropped due to the GFC • Limited price drop to Chinese cash cost of production 4
Slide 5: The shortage of Rare Earths has the world currently thirsting for these vital elements
The shortage of Rare Earths has the world currently thirsting for these vital elements For personal use only PRICE DRIVERS 2010 Tonnes REO US$/Kg • Consolidation of production and marketing channels • Chinese policies restricted supply • Demand recovering strongly • Prices starting to grow inside Ch
Slide 6: Future outlook – structural change in industry has commenced
Future outlook – structural change in industry has commenced For personal use only FUTURE PRICE DRIVERS Supply vs Demand Other impacts on cash costs: • Wage increases • Energy and Chemical cost increase • China CPI • Environmental operating costs including energy and chemicals $4 to $6 per kg • Cons
Slide 7: Lynas will offer the first new source of supply of Rare Earths outside of China - Q3 2011
Lynas will offer the first new source of supply of R Rare E Earths th outside t id off Chi China - Q3 2011 For personal use only LYNAS VITALS AT A GLANCE VISION: To be a g global leader in Rare Earths for a sustainable future Mount Weld EXCHANGE: ASX Top 200 Company; code LYC SHARES: 1,657m on issue
Slide 8: Lynas is on track for production in Q3 2011
Lynas is on track for production in Q3 2011 For personal use only KEY MILESTONES TO ENSURE A RELIABLE SOURCE OF RARE EARTHS • Lynas raised A$450 million in the equity markets to fund the completion of its project • All approvals in Australia and Malaysia in place to complete construction of processi
Slide 9: 15% more resources in Mount Weld; New Total Resource of 1.4 million tonnes of REO
As at September 2010, 15% more resources in The current mining operation is within the Mount Weld; New Total Resource of 1 1.4 4 million C t lZ Central Zone Pit For personal use only tonnes of REO CENTRAL LANTHANIDE DEPOSIT AND DUNCAN DEPOSIT RESOURCES Central Lanthanide Deposit & CLD & Duncan Miner
Slide 10: Mount Weld Rare Earths initial mining campaign complete, loss-time-injury-free
Mount Weld Rare Earths initial mining campaign complete, l t lloss-time-injury-free ti i j f For personal use only MOUNT WELD STOCKPILES WITH RARE EARTH OXIDE PERCENTAGES DUNCAN DEPOSIT (DD) Offices 773,000t on stockpiles 8% 13% DD CLD 17% DEPOSIT 26% 15% 13% 21% 20% Conc. Conc DD Plant 1.5km 10
Slide 11: Schematic - Concentration Plant process at Mount Weld
Schematic - Concentration Plant process at Mount W ld which Weld, hi h hhas b been ffully ll pilot il t plant l t ttested t d For personal use only 11
Slide 12: Commissioning of the Concentration Plant is on schedule
Commissioning of the Concentration Plant is on schedule h d l ffor F February b 2010 For personal use only CONSTRUCTION AT THE CONCENTRATION PLANT Flotation section under construction 12
Slide 13: Commissioning of the Concentration Plant is on schedule
Commissioning of the Concentration Plant is on schedule h d l ffor F February b 2010 For personal use only CONSTRUCTION AT THE CONCENTRATION PLANT Flotation building Concentration thickener and packing area 13
Slide 14: Commissioning of the Concentration Plant is on schedule
Commissioning of the Concentration Plant is on schedule h d l ffor F February b 2010 For personal use only CONSTRUCTION AT THE CONCENTRATION PLANT Ball mill being installed 14
Slide 15: Containers of Rare Earths concentrate will be trucked to Fremantle for shipping to Malaysia
Containers of Rare Earths concentrate will be t k d tto Fremantle trucked F tl for f shipping hi i tto Malaysia M l i For personal use only • Mount Weld to Fremantle = 1000km • Transportation approx. 9% of total costs 15
Slide 16: Lynas will expand the Malaysian processing hub
Lynas will expand the Malaysian processing hub, with the ability to take multiple sources of For personal use only material PROCESSING HUB WITH EXCEPTIONAL INFRASTRUCTURE Gebeng Industrial Estate, INDUSTRIAL INFRASTRUCTURE East Coast Malaysia KNOWLEDGE INFRASTRUCTURE GOVERNMENT INFRASTRUCTURE Incl
Slide 17: Schematic - Lynas Advanced Materials Plant core process
Schematic - Lynas Advanced Materials Plant core process, which hi h uses mature t iindustry d t ttechnology h l For personal use only 17
Slide 18: Lynas Advanced Materials Plant
Lynas Advanced Materials Plant For personal use only Phase 1 : 11,000t , REO Phase 2 : 22,000t REO -18-
Slide 19: First feed to kiln at the Lynas Advanced Materials Plant is scheduled for Q3 2011
First feed to kiln at the Lynas Advanced Materials Pl t iis scheduled Plant h d l d ffor Q3 2011 For personal use only FEATURES OF CONSTRUCTION AT THE LAMP Prefabricated Bluescope steel buildings Working on the foundations at the LAMP 19
Slide 20: First feed to kiln at the Lynas Advanced Materials Plant is scheduled for Q3 2011
First feed to kiln at the Lynas Advanced Materials Pl t iis scheduled Plant h d l d ffor Q3 2011 For personal use only FEATURES OF CONSTRUCTION AT THE LAMP Lynas-constructed stormwater detention pond Concrete Batch Plants 20
Slide 21: First feed to kiln at the Lynas Advanced Materials Plant is scheduled for Q3 2011
First feed to kiln at the Lynas Advanced Materials Pl t iis scheduled Plant h d l d ffor Q3 2011 For personal use only CONSTRUCTION AT THE LAMP Foundation works and steel reinforcement in place ready for further concrete pours 21
Slide 22: First feed to kiln at the Lynas Advanced Materials Plant is scheduled for Q3 2011
First feed to kiln at the Lynas Advanced Materials Pl t iis scheduled Plant h d l d ffor Q3 2011 For personal use only CONSTRUCTION AT THE LAMP Rotary kilns foundations Rotary kilns bodies 22
Slide 23: Time and expertise are vital for the effective execution of a Rare Earths project
Time and expertise are vital for the effective execution ti off a Rare R Earths E th project j t For personal use only MAN HOURS TO COMPLETE OUR LYNAS ADVANCED MATERIALS PLANT 4,000,000 1,000,000 900,000 800,000 , 700,000 600,000 500,000 300,000 280,000 400 000 400,000 300,000 200,000 40,000 100,000
Slide 24: We are industrialising our operations to meet our customers' expectations
We are industrialising our operations to meet our customers’ t ’ expectations t ti For personal use only FOUR PILLARS UNDERPINNING LYNAS’ OPERATIONS Marketing and Sales • Serving long-term long term customer requirements and commitments commitments, and thus providing input for plant extensions and
Slide 25: Eight customer agreements have been signed
Eight customer agreements have been signed For personal use only Rhodia Customer Agreement - Supply Contract • >US$200M¹ 8th Customer Agreement – Supply Contract • Long term 10 year contract, Phase I • Long term contract • Cerium, Europium, Terbium & Lanthanum • Product from Phase I & II 2nd Custome
Slide 26: Lynas – online in 2011, delivering Rare Earths globally
Lynas – online in 2011, delivering R Rare E Earths th globally l b ll For personal use only Our vision is to be a global leader in Rare Earths for a sustainable future. We are close to realising this vision. Lynas will be online in 2011, delivering Rare Earths globally. This is the first new product
Slide 27: NOTE
NOTE For personal use only The information in this report p that relates to Exploration p Results,, Mineral Resources or Ore Reserves is based on information compiled by Brendan Shand, who is a member of The Australasian Institute of Mining and Metallurgy. Brendan Shand is an employee of Lynas Corpo
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