Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Rare Earths & Future Metals Forum (March 2010)
21 slides from Arafura Rare Earths's conference presentation, Mar 29, 2010
Slide 1: Rare Earths & Future Metals Forum
For personal use only Rare Earths & Future Metals Forum Perth, Western Australia 29 March 2010
Slide 2: Disclaimer
Disclaimer For personal use only Important Notice This presentation contains certain statements which may constitute “forward‐looking statements.” Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance achievemen
Slide 3: Arafura Resources Limited
Arafura Resources Limited For personal use only Arafura is an Australian‐based mineral exploration and development company which listed on the Australian Securities Exchange in 2003 Our Vision is to be the pre‐eminent supplier of rare earths to the world and we will do this by: y developing the Nola
Slide 4: Corporate Structure
Corporate Structure (ASX: ARU) For personal use only As at 8 March 2010 Capital 287.4m shares; 15.5m Board/Employee options Market capitalisation (ASX:ARU closing price @ 8 March 2010) @ A$0.60 = ~A$175 million Cash (@ 8 March 2010) A$25.2 million Top shareholders ANZ Nominees1 30.2% ECE2 22.4% Citi
Slide 5: Business Plan
Business Plan For personal use only To create shareholder value by: • focusing on the Nolans Rare Earths‐Phosphate‐Uranium Project • identifying other rare earth projects • JV or explore current projects in gold, base metals and iron‐vanadium (ongoing JV discussions)
Slide 6: Rare earths - global supply restricted
Rare earths - global supply restricted • China currently supplies 95% of rare earths For personal use only • China restricting supply through industry consolidation, closing old and environmentally unfriendly operations, export quotas and tariffs. • Each RE deposit is geologically unique and require
Slide 7: Rare earths: demand growth, constrained supply
Rare earths: demand growth, constrained supply For personal use only The Nolans resource is well positioned to become a substantial supply source to the world market far into the future
Slide 8: Rare earths – prices forecast to rise significantly
For personal use only Rare earths – prices forecast to rise significantly BCC Research forecasts 20‐30% Compound Annual Growth Rate increase in rare earth prices over the next five years
Slide 9: Arafura’s rare earths business structure
Arafura’s rare earths business structure For personal use only • Nolans current resource is sufficient to sustain production of 20,000 t of REO p.a. for more than 20 years • With further drilling, Arafura is confident Nolans has geological potential to expand to support increased production beyond 2
Slide 10: Nolans location
Nolans location For personal use only • Central Australian location • No competing land use • Not too remote from infrastructure – 5 km to gas line – 10 km to Stuart Highway – 60 km to rail line – 135 km north of Alice Springs – 1200 km north to Darwin – 1300 km south to Port Pirie
Slide 11: Nolans is a globally significant resource
Nolans is a globally significant resource For personal use only y Exposed at surface y Size extent unknown y Only drilled to 130m below surface y Estimated initial mine life 20+ years; nevertheless ….. y Further drilling planned to expand resource base and reduce resource risk
Slide 12: Nolans process
Nolans process For personal use only Processing technology makes a successful rare earths company Arafura intellectual property developed to specifically exploit the Nolans deposit Proven process from mine site to product through Demonstration Plant
Slide 13: Nolans demonstration plant
Nolans demonstration plant For personal use only Utilising the Heavy Media Separation Froth Flotation Utilising the expertise of expertise of ANSTO Bateman Litwin Rare Earth Processing Acid Bake Phosphoric Acid SX Rare Earth Products Uranium Phosphoric Acid & CaCl2
Slide 14: Nolans has a superior rare earth mix
For personal use only Nolans has a superior rare earth mix Rare Earth Applications Nolans Mt Weld Mountain Pass Baiyunebo Oxide Australia Australia USA China Lanthanum Petroleum cracking 19.74% 25.6% 33.2% 27.1% catalysts; Batteries (NiMH) Cerium Autocatalysts; Glass; 47.53% 45.74% 49.1% 49.86% Poli
Slide 15: Nolans rare earth mix: a competitive advantage
For personal use only Nolans rare earth mix: a competitive advantage In Situ REO value (February 2010) $13.11 $13.23 14.00 12.00 $10.36 Cerium Lanthanum 10.00 $8.80 Praseodymium Neodymium 8.00 Samarium US$/kg Europium 6.00 Gadolinium Dysprosium Terbium 4.00 Yttrium Other 2.00 0.00 Mountain Pass Baiy
Slide 16: Nolans total product value
For personal use only Nolans total product value Product value including co-product and by-product credits in US$/kg as REO equivalent Footer
Slide 17: Value creation: pit to customer across all products
Value creation: pit to customer across all products For personal use only Rare earths are much more complex than some other commodities. There are many value drivers to consider. L Grade Size Conversion Mineral Resources o REE assemblage & Other valuable commodities Ore Reserves c a t Recovery Minin
Slide 18: Nolans valuation as at November 2009
For personal use only Nolans valuation as at November 2009
Slide 19: Nolans development timeline – looking forward
Nolans development timeline – looking forward For personal use only
Slide 20: Thank You
For personal use only Thank You
Slide 21: Corporate Information
For personal use only Corporate Information Registered Office Arafura Resources Ltd Level 5, 16 St Georges Terrace Perth WA 6000 Telephone +61 8 6210 7666 Facsimile +61 8 9221 7966 Share Registry Security Transfer Registrars 770 Canning Highway Applecross WA 6153 Telephone +61 8 9315 2333 Facsimile
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