Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Macquarie Bank Western Australia Forum 2022
21 slides from Arafura Rare Earths's conference presentation, Nov 28, 2022
Slide 1: ASX Announcement: Macquarie Bank WA 2022 Forum
ASX ANNOUNCEMENT MACQUARIE BANK WA 2022 FORUM 28 November 2022 For personal use only Arafura Rare Earths Limited (ASX: ARU) (“Arafura” or the “Company”) is pleased to attach a copy of its presentation for the Macquarie Bank Western Australia Forum, held at Macquarie’s Perth Offices over 28- 30 Novem
Slide 2: Nolans Project Recent Market Developments
28/11/2022 Nolans Project Recent Market For personal use only Developments 28 November 2022 Macquarie WA Forum (ASX:ARU) 1
Slide 3: Disclaimer
28/11/2022 Disclaimer For personal use only This presentation has been prepared by Arafura Rare Earths Limited (Arafura, Arafura Rare Earths or the Company) and is of a summary form only and therefore contains general background information which may not be complete. It should be read in conjunction
Slide 4: Australian REE Supply Diversification
28/11/2022 Australian REE Supply For personal use only Diversification (ASX:ARU) 3
Slide 5: Nolans Project Update: Key Takeaways
28/11/2022 Nolans is the only advanced fully permitted Ore to Oxide Project project of scale outside China Update For personal use only Cornerstone Binding Offtake Agreement with Hyundai and Kia. Non-binding MoU with GE Renewable Energy to collaborate in establishment of sustainable supply chain for
Slide 6: Corporate Snapshot and Capital Structure
28/11/2022 Corporate Capital Structure Snapshot ASX Code ARU ASX Share Price (22 Nov 2022) $0.46 For personal use only Shares on Issue 1,727m Market Capitalisation $794.62m Nolans is a shovel-ready world class Nolans aims to supply 12 Month Liquidity $544.43m NdPr project Cash* $49.01m 5-10% of glob
Slide 7: Delivering to an ESG World
28/11/2022 Delivering to an ESG World For personal use only Nolans is the only NdPr focused project in Australia that plans to mine and process ore to oxide at a single site. In a changing world a focus on environmental responsibility has become paramount All environmental approvals have been secure
Slide 8: NdPr Market Development
28/11/2022 NdPr Market For personal use only Development (ASX:ARU) 7
Slide 9: NdPr for Magnets: Critical Component in Clean Energy Sector
28/11/2022 NdPr for Magnets Critical Forecast supply gap emerging by 2030 represents in excess of 10 Nolans Projects Component in Clean Energy Sector For personal use only ➔ Wood Mackenzie forecast an Accelerated Energy Transition (AET) 1.5°C scenario (Global net zero by 2050) requires significant a
Slide 10: NdPr Supply Gap
28/11/2022 Investment in new projects is required to NdPr Supply Gap meet demand requirements For personal use only New supply will lag significantly behind demand growth and only a handful of non-China NdPr projects will be in production in the next 5 years Tighter regulatory and policy controls wi
Slide 11: NdPr Resource Project Pipeline
28/11/2022 NdPr Resource Project Pipeline For personal use only Long Life NdPr Oxide High Capital High Value Intermediate Mixed RE Resource Constrained Feed into China Concentrate Mineral Early Exploration Country Risk Offshore Processing Feed into China Early Stage Intermediate Advanced Stage Appro
Slide 12: Offtake Update
28/11/2022 Offtake For personal use only Update (ASX:ARU) 11
Slide 13: Offtake
28/11/2022 Offtake Arafura is targeting 85% of Planned Production1 as binding offtake for FID (Binding Offtake Target). For personal use only … Offtake Discussion Group Location NdPr Oxide (tpa)2 % of Binding Offtake Target Secured Offtake (binding agreement) Offtake strategy aligned Hyundai & Kia K
Slide 14: Seeking Offtake & Supply Chain Achievement in ESG Credentials
28/11/2022 SEEKING Offtake & Supply Chain ACHIEVEMENT IN THESE ESG CREDENTIALS Mine RE Extraction For personal use only RE Separation Sustainable producer of NdPr to align to Toll (Australia) “Green Procurement” strategy Processing Contract NdPr Oxide Enables access to a sustainable NdPr Metal Conve
Slide 15: Offtake & Link to Project Funding
28/11/2022 Offtake & Link to For personal use only Project Funding (ASX:ARU) 14
Slide 16: Progress on Funding
28/11/2022 Progress on Funding For personal use only Debt Equity Mandated Lead Arrangers (MLAs) appointed- Potential strategic investment in Arafura to be Société Générale and NAB negotiated in conjunction with final offtake through MLAs seeking to arrange US$510m (inclusive of cost HoA with Hyundai
Slide 17: Funding Structure
28/11/2022 Targeted Project Project Funding MMI Grant For personal use only Requirement Funding Structure Debt Equity Nolans NdPr EFA & NAIF Project Bank- Offtake Strategic Uncovered Partner Equity Bank- ECA New Capital (ASX:ARU) Covered Guarantee 16
Slide 18: Australian REE Supply Diversification
28/11/2022 Australian NdPr and NdFeB critical to energy transition. Energy transition linked to policy and demand but could be REE Supply For personal use only disrupted by procurement of critical materials. Diversification Future economic leadership needs collaboration to establish robust and diver
Slide 19: Contact Information
28/11/2022 Contact Information For personal use only Level 6, 432 Murray St, Perth WA 6000 34/119 Reichardt Rd, Winnellie NT 0820 +61 8 6370 2800 arafura@arultd.com www.arultd.com (ASX:ARU) 18
Slide 20: Long Life Asset
28/11/2022 Long Life Asset RESOURCES TONNES (m) RARE EARTHS TREO % PHOSPHATE P2O5 % NdPr ENRICHMENT % Geology For personal use only Measured 4.9 3.2 13 26.1 Indicated 30 2.7 12 26.4 Inferred 21 2.3 10 26.5 TOTAL 56 2.6 11 26.4 World class strategic As announced on 7 June 2017. 1% TREO cut-off grade.
Slide 21: Updated Project Economics
28/11/2022 Base case scenario average LOM Updated Project Economics NdPr US$130/ kg Key Project Information Post-tax NPV8 of A$2.4 billion For personal use only Mining and Production Mine Life (years) 38 and IRR of 19.3% NdPr Oxide (tpa) SEG/HRE Oxide (tpa) 4,440 474 Upside Case average LOM Phosphor
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