Slide 1: Kangankunde Rare Earths Project Stage 1 Feasibility Study Results
Kangankunde Rare Earths Project For personal use only Stage 1 Feasibility Study Results 3 July 2024 ASX:LIN OTCQB:LINIF
Slide 2: Important Information: Disclaimer and Competent Persons' Statement
IMPORTANT INFORMATION Disclaimer Competent Persons’ Statement The material in this presentation has been prepared by Lindian Resources Limited (“Company”). The information in this presentation that relates to Exploration Results, Metallurgy Results, and Mineral Resources of the Kangankunde Rare Eart
Slide 3: Feasibility Study Results: Overview
For personal use only KANGANKUNDE PROJECT FEASIBILITY STUDY RESULTS Overview 3
Slide 4: Kangankunde Location and Background
KANGANKUNDE LOCATION AND BACKGROUND • Malawi is a stable jurisdiction with English Law and a democratically elected government. For personal use only • Kangankunde is located in the southern region in proximity to Blantyre and Balaka. • Site has good access to road, rail, power and water infrastruct
Slide 5: Feasibility Study Results - Summary
FEASIBILITY STUDY RESULTS - SUMMARY Stage 1 can be a technically and economically robust project with significant expansion upside For personal use only 2x growth next decade 15,323 tpa TREO 45 years ~15 months Strong market outlook Annual production Stage 1 mine life, based From FID to first on cur
Slide 6: Kangankunde Production Summary
KANGANKUNDE PRODUCTION SUMMARY A world-class resource to produce a high grade, high NdPr ratio concentrate with low radionuclides (thorium & uranium) and low acid consuming minerals For personal use only Category Unit Total Ore Reserves (1% TREO cut-off) Mt 23 TSF ROM Mineral Resource (0.5% TREO cut
Slide 7: Feasibility Study Results: Resources and Reserve
For personal use only KANGANKUNDE PROJECT FEASIBILITY STUDY RESULTS Resources and Reserve 7
Slide 8: Mineral Resources and Ore Reserves
MINERAL RESOURCES AND ORE RESERVES Mineral Resource Inclusive of Reserves @ 0.5% TREO Cut-off Grade Resource Tonnes TREO NdPr% of Tonnes Classification TREO** Contained (millions) (%) NdPr* (%) For personal use only (millions) Indicated 61 2.43 20.1 0.3 Inferred 200 2.05 20.4 0.8 Total Resource 261
Slide 9: Feasibility Study Results: Mining and Processing
For personal use only KANGANKUNDE PROJECT FEASIBILITY STUDY RESULTS Mining and Processing 9
Slide 10: Mine Design and Operations
MINE DESIGN AND OPERATIONS Key points: Stage 1 For personal use only Stage 5 • 6 open pit mining zones. (underneath pit) • Annual total material mined 613 kt vs Stage 6 Stage 3 annual ore mined 529 kt. • 19.5 Mt of high-grade feed at 3.1% TREO. • Very low strip ratio (<0.2). Stage 4 • Conventional m
Slide 11: Processing Flowsheet
PROCESSING FLOWSHEET 3 1 Simple processing operation: For personal use only 2 • Unique mineralogy favourable to REE 4 recovery using mainly physical process of gravity and magnetic separation. 6 • Sulphide flotation on the concentrate 7 stream only, resulting in extremely low reagent consumption. 5
Slide 12: Project Layout
PROJECT LAYOUT ROM stockpile For personal use only TSF Explosives Concentrate magazine storage Process plant Plant office, lab & maintenance workshops Coreshed Mobile maintenance RWD Contractor workshop laydown area Fuel farm Admin office Weigh bridge 12
Slide 13: Processing Plant
PROCESSING PLANT Concentrate storage For personal use only 7 Plant office, lab & maintenance workshops MCC Classification 3 4 Gravity separation ROM stockpile 1 2 Grinding 13
Slide 14: Processing Plant
For personal use only PROCESSING PLANT ROM stockpile Grinding Magnetic separation 2 5 Thickener 8 4 3 Gravity separation Classification 14
Slide 15: Processing Plant
For personal use only PROCESSING PLANT Site office TSF Process plant 9 Lab Laydown area Maintenance workshops 15
Slide 16: Infrastructure and Workforce
For personal use only INFRASTRUCTURE AND WORKFORCE Power Water Tailings Other Workforce 3MW power Sourced from Tailings storage Fuel storage and ~200 people during requirement - grid borefields, piping facility and return dispensing. construction; ~110 FTE power connection system to supply water dam
Slide 17: Production Profile
PRODUCTION PROFILE Stage 1 planned to produce an average annual concentrate of ~15,300tpa with 55% REO grade, delivering ~8,200tpa of REO and 1,610tpa of NdPr For personal use only Years 1 -5 LOM Annual Description Unit Annual Average Average Annual tonnes milled kt 444 451 Production profile – 5 ye
Slide 18: Logistics
LOGISTICS Excellent transport infrastructure including sealed roads and rail For personal use only Transport and shipping • Concentrate product dried to 2% moisture and packed in 1 tonne bulka bags at Kangankunde site. • Bulka bags transported ~110kms by sealed road to Limbe (the operational headqua
Slide 19: Feasibility Study Results: Capital and Operating Costs
For personal use only KANGANKUNDE PROJECT FEASIBILITY STUDY RESULTS Capital and Operating Costs 19
Slide 20: Capital Costs
CAPITAL COSTS Robust cost estimation process by subject experts – AACE Class 2 Estimate Cost Category US$M % of total For personal use only DIRECT CAPITAL COST Civil works 4.7 11.9 Tailings storage facility 3.8 9.7 Process plant 18.3 45.7 Power infrastructure 1.1 2.6 Site support and ancillaries 1.3
Slide 21: Capital Costs
CAPITAL COSTS Robust cost estimation process by subject experts – AACE Class 2 Estimate Highlights For personal use only Growth and Civil works contingency • Estimation methods were tailored to each $4.5M (11.3%) $4.7M (11.9%) discipline and aimed at cost and risk reduction. Detailed engineering • T
Slide 22: Kangankunde Low Capital Cost
KANGANKUNDE LOW CAPITAL COST One of the lowest Capital Cost developments of global rare earths projects For personal use only Based on publicly available information – refer Appendix Source Document #2 22
Slide 23: Kangankunde NPV/Capex Multiple
KANGANKUNDE NPV/CAPEX MULTIPLE One of the highest Return on Capital results of global rare earths projects For personal use only Based on publicly available information – refer Appendix Source Document #3; Assumed AUD/USD exchange rate of 0.65 for companies that report US$ 23
Slide 24: Operating Costs
OPERATING COSTS Ultra low US$2.92/kg REO (FOB) due to favourable project factors For personal use only Plant TREO in Annual Throughput Concentrate Area Cost (US$ % Total Unit Cost Unit Cost 000/y) (US$/t) (US$/kg) Mining 6,530 21 14 0.79 Processing 8,970 29 20 1.09 Maintenance 2,160 7 5 0.26 General
Slide 25: Operating Costs
OPERATING COSTS Ultra low US$2.92/kg REO (FOB) due to favourable project factors Kangankunde OPEX Favourable factors include: For personal use only US$2.92/kg TREO (FOB) • Conventional mining with a very low strip Royalties Mining ratio of <0.2. • Low distance and downhill ore haulage. Product trans
Slide 26: Global Industry Cost Curve
GLOBAL INDUSTRY COST CURVE Ultra low OPEX – positioning in lowest cost quartile for rare earths projects globally Source: Project Blue – based on their estimate of MREC equivalent cost For personal use only Assumed AUD/USD exchange rate of 0.65 for companies that report US$ ASX: LIN 26
Slide 27: Feasibility Study Results: Market and Offtake
For personal use only KANGANKUNDE PROJECT FEASIBILITY STUDY RESULTS Market and Offtake 27
Slide 28: What Is Driving Rare Earth Demand?
WHAT IS DRIVING RARE EARTH DEMAND? Global trends will continue to drive NdPr oxide is a critical input for NdFeB magnets demand for rare earths used in wind turbines and electric vehicles For personal use only Source: Project Blue Report 2024 28
Slide 29: NdPr Demand Forecast
NdPr DEMAND FORECAST It is expected the NdPr market will triple in the period to 2050, requiring an 3x increase of 2023 supply levels For personal use only ~CAGR 13.6% 2023 Global NdPr production ~55 ktpa CAGR 9% Tonne NdPr +2X GROWTH FY2010-FY2020 PROJECT BLUE – PROJECTED MARKET TREND needs an addi
Slide 30: Rare Earths' Market
RARE EARTHS’ MARKET Price assumptions based on Y1-5 at US$82/kg NdPr and LOM at US$109/kg NdPr use only NdPr Pricing US$/kg For personal Right Source: LIN: Project Blue 2024 I CG: Feasibility Cannacord Genuity; report dated 13 March 2024 | MS: Morgan Stanley: report dated 13 March 2024 | BJ: Barrenj
Slide 31: Marketing Strategy
MARKETING STRATEGY Product Strategy Pricing Strategy For personal use only • Premium Concentrate product • Price premium due to quality • Top quartile REO grade • Lower processing cost due to favourable • Low impurity levels mineralogy • Ultra low radioactivity • Higher payability than average peer
Slide 32: Feasibility Study Results: Financial Evaluation
For personal use only KANGANKUNDE PROJECT FEASIBILITY STUDY RESULTS Financial Evaluation 32
Slide 33: Financial Evaluation
FINANCIAL EVALUATION Outstanding financial metrics Profitable at current low prices For personal use only Years Years 1-5 LOM LOM LOM Unit Spot Price Financial metric Unit 1 to 5 (average) (average) US$ A$ US$ Average US$/kg 50 82 109 Average annual revenue $M 81.1 113.7 170.3 Price NdPr Average ope
Slide 34: Financial Evaluation - Sensitivities
FINANCIAL EVALUATION - SENSITIVITIES Robust project economics continue to deliver positive NPV results For personal use only Pre-Tax NPV (Base Case Pre-Tax LOM NPV @ 8% ~US$800M) Sensitivity to Key Variables ASX: LIN 34
Slide 35: Financing Status - Next 18 Months
FINANCING STATUS – NEXT 18-MONTHS Potential uses of funds next 18-months Funding solutions being of US$60M-$70M progressed For personal use only Vendor payment (at first commercial production - late 2025) • Several positive discussions underway in recent months. • Parties engaged include constructio
Slide 36: Feasibility Study Results: Development Schedule
For personal use only KANGANKUNDE PROJECT FEASIBILITY STUDY RESULTS Development Schedule 36
Slide 37: Indicative Development Timeline
INDICATIVE DEVELOPMENT TIMELINE Estimated 15-months from funding confirmation to first product on ship For personal use only Calendar Year 2024 2025 2026 Quarter Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Feasibility Study complete Engineering design Funding confirmation Civil works contract award Enabling works/bu
Slide 38: Timeline from FID to Production
TIMELINE FROM FID TO PRODUCTION Kangankunde positioned to be the next producer of hard rock rare earths For personal use only Note: Apart from Pensana Plc (PRE) all of these development rare earth companies have not commenced construction and are awaiting funding to commence construction. Based on p
Slide 39: Feasibility Study Results: Environment and Community
For personal use only KANGANKUNDE PROJECT FEASIBILITY STUDY RESULTS Environment and Community 39
Slide 40: Operating Sustainably
OPERATING SUSTAINABLY Keeping everyone Safe For personal use only Supporting Community Respecting Culture Being Responsible and ethical Strong Governance Looking after Environment 40
Slide 41: Working with Community
WORKING WITH COMMUNITY Community engagement For personal use only • Long-standing relationship with local communities. • Community members’ resettlement process • Community Engagement Plan developed with and strongly endorsed by community. • Establishment of community committee with Lindian and gove
Slide 42: Environment and Licences
ENVIRONMENT AND LICENCES Low environmental impact and radiation, fully permitted to commence construction and operations For personal use only Environmental and Social Radiation management Impact Assessment (ESIA) • Ore contains low Th (50ppm) • ESIA completed and approved and U (5ppm). Product by M
Slide 43: Feasibility Study Results: Risks and Opportunities
For personal use only KANGANKUNDE PROJECT FEASIBILITY STUDY RESULTS Risks and Opportunities 43
Slide 44: Risks and Opportunities - Summary
RISKS AND OPPORTUNITIES - SUMMARY RISKS OPPORTUNITIES For personal use only Area Risk Description Area Opportunity Approvals Delays in approvals to commence Ore Reserves The current Mineral Resource includes 61Mt of construction Indicated Resource, with only 23.7Mt converted to Ore Reserves. Licence
Slide 45: REO Tonnes in Resources - Global Leader
REO TONNES IN RESOURCES – GLOBAL LEADER Kangankunde’s large Resource endowment, plus robust market demand forecasts, provides confidence for a potential Stage 2 expansion For personal use only Note: Size of bubble represents contained TREO Based on publicly available information – refer Appendix Sou
Slide 46: Feasibility Study Results: Conclusion
For personal use only KANGANKUNDE PROJECT FEASIBILITY STUDY RESULTS Conclusion 46
Slide 47: Outstanding Feasibility Results
OUTSTANDING FEASIBILITY RESULTS 1 2 3 CRUCIAL TO SUPERIOR LOW For personal use only Global Tier 1 Asset Capex & Supply Opex • Massive Resource • Growing market • CAPEX US$40M • High REO content • Low-cost NdPr supply • OPEX – US$2.92/kg TREO • Low radionuclides and low • Profitable operation even at
Slide 48: Feasibility Study Results: End
For personal use only KANGANKUNDE PROJECT FEASIBILITY STUDY RESULTS End 48
Slide 49: Contact
CONTACT Alwyn Vorster For personal use only CHIEF EXECUTIVE OFFICER E - info@lindianresources.com.au Linda Gimondo MANAGER CORPORATE AFFAIRS E - Linda.gimondo@lindianresources.com.au Lindianresources.com.au | + 61 8 6557 8838 | Level 24, 108 St Georges Terrace, Perth FOLLOW US 49 49
Slide 50: Appendices
For personal use only KANGANKUNDE PROJECT FEASIBILITY STUDY RESULTS Appendices 50
Slide 51: Corporate Information
CORPORATE INFORMATION Company ASX Code LIN Substantial Shareholders Share Price ~A$0.16 For personal use only Kabunga Holdings Pty Ltd 10.9% Ordinary Shares on Issue 1.153B Bonacare Pty Ltd / Topwei Pty Ltd / Wei & 9.9% Performance Rights 16.3M Zhang Options on Issue : Conversion value Ven Capital P
Slide 52: Experienced Leadership Team
EXPERIENCED LEADERSHIP TEAM Board Executive Leadership Team For personal use only ASX: LIN 52
Slide 53: Feasibility Study - Key Contributors
For personal use only FEASIBILITY STUDY - KEY CONTRIBUTORS ASX: LIN 53
Slide 54: Lindian Corporate Structure and Bios of FS Contributors
BIOS OF FS LINDIAN CORPORATE CONTRIBUTORS STRUCTURE Lindian Resources Limited For personal use only AUSTRALIA 100% Lindian Rare Earths Limited UNITED KINGDOM 66% 100% Rift Valley Resource Lindian Mining Developments Limited Services Limited MALAWI MALAWI Mining and exploration licences; environmenta
Slide 55: Kangankunde Mineral Resource Estimate
KANGANKUNDE MINERAL RESOURCE ESTIMATE Table 1: Kangankunde Rare Earths Mineral Resource (at 0.5% TREO cut-off) Tonnes La2O3 CeO2 Pr6O11 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb4O7 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 Class (Mt) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm
Slide 56: Concentrate - Typical Product Specs
CONCENTRATE – TYPICAL PRODUCT SPECS Typical expected average REO 55%; Typical expected average NdPr 19.5%; Low U, Th and sulphides For personal use only REO La2O3 CeO2 Pr6O11 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb4O7 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 % 28.8 50.30 4.85 14.5 0.90 0.15 0.25 0.02 0.05 0.01 0
Slide 57: Source Data #1: Resource
Source Data #1: Resource Company Code Project % TREO Contained TREO (t) Source Document (s) For personal use only a. Annual Report 2023, 11 October 2023, Page 25 https://pensana.co.uk/wp-content/uploads/2023/10/Pensana- Pensana Plc PRE.LN Longonjo 1.43 4,470,000 AR-2023_FINAL.pdf Peak Rare a. Nguall
Slide 58: Source Data #2: Capex
Source Data #2: Capex Company Code Project Location Product Capex Source Document (s) For personal use only Arafura Rare a. Equity Raise Presentation, 13 December 2023, Slide 9 ARU.AX Nolans Australia Oxide a. A$1,680M (inc contingency) Earths https://announcements.asx.com.au/asxpdf/20231213/pdf/05y
Slide 59: Source Data #3: NPV/Capex Multiple
Source Data #3: NPV/Capex Multiple NPV (A$M, Pre-Tax, NPV (A$M,Post-Tax, Company Code Project Location Product Capex (A$m) NPV/Capex Source Document (s) discount rate) discount rate) a. Equity Raise Presentation, 13 December 2023, Slide 9 For personal use only Arafura Rare a. A$1,680M (inc b. A$2,35
Slide 60: Source Data #4: Production
Source Data #4: Production Company Code Project Location Product Production Source Document (s) a. Baosteel Co., Ltd. Announcement of Main Operating Data in 2023, 6 May 2024, Page 1 For personal use only https://download.wezhan.cn/contents/sitefiles2049/10249715/files/809406..pdf?response-content- a
Slide 61: Source Data #5: Months Construction to First Product
Source Data #5: Months Construction to First Product Company Code Project Location Product Months to First Production Source Document (s) a. Offer Presentation, 17 April 2024, Slide 16 a. 24-30 months For personal use only https://announcements.asx.com.au/asxpdf/20240417/pdf/062lm42nwlqtvk.pdf ASM A