Northern Minerals Limited · ASX:NTU
Northern Minerals — Shareholder Meeting (November 2019)
36 slides from Northern Minerals's shareholder meeting presentation, Nov 14, 2019
Slide 1: Company Update November 2019
For personal use only Company Update November 2019 Presented by George Bauk MANAGING DIRECTOR / CEO 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by Northern Minerals Limited (“Northern Minerals” or the “Company”). This document is of a summary form only and therefore contains general background information which may not be complete. It should be read in conjunction with and full review made of North
Slide 3: Our Aspiration
Our Aspiration For personal use only Principal supplier of ethically produced rare earth metals and separated products from the world’s largest heavy rare earth element inventory within 10 years A ten year $235m journey Over the next 14 months our main focus: Accelerated exploration aiming to expa
Slide 4: Health and Safety
Health and Safety No LTI at the operation for 2 years; TRIFR reached zero in June 2019; ANNUAL INJURY PERFORMANCE Emergency Response training – e.g. For personal use only 12 confined space rescue; 10 Improvement in Safety Culture; Enhancing safety team; 8 Crisis Management Training. Freq
Slide 5: Environment
For personal use only Environment Committed to ethically produced rare earths; Environmental Management System in place; Updated Mine Closure Plan submitted to DMIRS; Progressive rehabilitation as areas become available; Expanding the environment team; Ore sorter approvals underway; Di
Slide 6: Browns Range East Kimberley, WA
For personal use only Browns Range East Kimberley, WA ASX:NTU << AUSTRALIAN DYSPROSIUM >> 6
Slide 7: Product separation
Product separation For personal use only Upstream Midstream Downstream Refining/recycling Alloy and Component Extraction Beneficiation Separation Oxide End-use Hydrometallurgy Magnet To metal manufacture manufacture manufacture Our Aspiration Mixed Principal supplier of ethically Separated Dy to met
Slide 8: Value proposition
For personal use only Value proposition Globally significant Initiatives Browns Range is one of a few non- Several projects underway, including ore Chinese producers of dysprosium sorting and separation, to increase value EV growth & military use Exploration upside A key ingredient in permanent magn
Slide 9: Dysprosium – critical to the EV evolution
Dysprosium – critical to the EV evolution For personal use only With each electric vehicle using just over 100g of dysprosium, the company understands that demand may increase to over 3,500tpa by 2030. With over 98% of Dy production from China, there is strong interest in the US and globally for new
Slide 10: Rare Earths news coverage
For personal use only Rare Earths news coverage ASX:NTU << AUSTRALIAN DYSPROSIUM >> 10
Slide 11: The competition is unsustainable
For personal use only The competition is unsustainable Southern China in situ leach mining operation Northern Minerals Browns Range 98% of world’s heavy rare earths produced by China; These types of operations are being phased out, Many operations are in situ leach operations, which however th
Slide 12: Dysprosium price is up 26% since the start of 2019
Dysprosium price is up 26% since the start of 2019 Dysprosium Oxide 99%min China US$/kg Dysprosium Oxide 99%min China US$/kg For personal use only 320.00 950 300.00 850 280.00 750 260.00 650 DY US$/KG 240.00 550 450 220.00 350 200.00 250 180.00 150 160.00 Source: Asian Metals ASX:NTU << AUSTRALIAN D
Slide 13: Quality offtake partner - thyssenkrupp
Quality offtake partner - thyssenkrupp For personal use only Northern Minerals has entered into an offtake agreement with thyssenkrupp Materials Trading GmbH (thyssenkrupp) for all mixed heavy rare earth carbonate from the Browns Range Pilot Plant Project, including all stockpiled product. The agree
Slide 14: Browns Range pilot plant flowsheet
Rare Earth Magnetic Dryer Kiln Carbonate Separation Water Leach Precipitation Browns Range For personal use only pilot plant flowsheet Xenotime Concentrate Stockpile Rare Earth Carbonate Crushed Bagging Ore Stockpile Tails Crusher Ball Mill Flotation CCD Purification ASX:NTU << AUSTRALIAN DYSPROSIUM
Slide 15: Debottleneck project
Debottleneck project Bottlenecks in the Pilot Plant process that are preventing nameplate capacity being achieved were identified For personal use only during commissioning in early 2019. To date, 70% has been completed largely through the Oct 2019 shutdown. Debottlenecking items include: Addition
Slide 16: Ore sorting – a game changer
Ore sorting – a game changer For personal use only Steinert ore sorter machine purchased; Front end engineering & design nearing completion; Process design frozen with detailed engineering design to commence; Equipment and installation package RFQs being tendered; Subject to approvals, aim
Slide 17: Rare earth separation scoping study underway
Rare earth separation scoping study underway For personal use only Scoping study commenced to investigate downstream processing of mixed rare earths into separated rare earth oxides; U.S.A based K-Technologies Inc selected to undertake bench scale testwork and Scoping Study; Samples dispatched
Slide 18: Staged development plan
Staged development plan For personal use only Test Pilot Plant Mine xenotime ore Produce mixed RE carbonate Export to offtake customers Refine Project Validate & refine flowsheet 02 Implement ore sorting Improve xenotime conc. grade Investigate plant efficiencies Develop Full Project 03 Economies of
Slide 19: Exploration underway in 2019
For personal use only Exploration underway in 2019 The Browns Range dome is a massive geological feature covering 1,500km 2 and stretching 60km x 30km most of which hasn’t been effectively explored New discoveries 20+ year life target High-grade discoveries made in Focus on growing mine life from 11
Slide 20: 2019 & 2020 Exploration Program
2019 & 2020 Exploration Program For personal use only Exploration focus on high-grade, near surface deposits (Unconformity-related) 2019 2020 onwards For the remainder of 2019: A$6m program for 2020/21 including: 4,000m of RC drilling Up to 20,000m of RC and RAB/Aircore drilling Diamond drilli
Slide 21: Dazzler Mineral Resource
Dazzler Mineral Resource For personal use only TREO Dy2O3 Y2O3 Tb4O7 HREO TREO Category Mt % kg/t kg/t kg/t % kg Indicated - - - - - - - Inferred 0.14 2.23 2.08 12.79 0.27 93 3,200,000 Total 0.14 2.23 2.08 12.79 0.27 93 3,200,000 REO % of Total REO La2O3 1.20 CeO2 3.44 Pr6O11 0.48 Nd2O3 2.21 Sm2O3 1
Slide 22: Strengthening our balance sheet
Strengthening our balance sheet For personal use only In the year 2019 to date we have: Raised and banked A$73m; Repaid A$27m to close out Brevet R&D loan; Repaid the Lind facility; A$20m subscription announced – subject to FIRB / Shareholder Approval; 1st Payment made to Sinosteel of A$2.
Slide 23: NTU Board
NTU Board Colin McCavana George Bauk Adrian Griffin Ming Lu Bin Cai For personal use only *Alternate Non-executive Director Colin McCavana - Non-executive Chairman (appointed 2006) George Bauk - Managing Director / CEO (appointed 2010) CM Mr McCavana has more than 35 years of management experience w
Slide 24: Corporate overview
Corporate overview Ordinary Shares as at 31 October 2019 2,555M For personal use only Options and Performance Rights as at 31 October 2019 115M Market Capitalisation as at 31 October 2019 $130M Cash (30 September 2019) $18.8M Debt (as at 31 October 2019): ATO (under appeal with AusIndustry) $11.4M S
Slide 25: Why invest in Northern Minerals
Strategic advantage as one of a few non-Chinese producers of dysprosium and terbium; Pilot plant project to demonstrate and assess economic and technical feasibility of larger operation; For personal use only Offtake agreement with quality partner, thyssenkrupp; Environmentally friendly, sustainable
Slide 26: Thank you
For personal use only Thank you Contacts George Bauk, Managing Director & CEO gbauk@northernminerals.com.au Mark Tory, Chief Financial Officer & Company Secretary mtory@northernminerals.com.au Northern Minerals Andrew Rowell, Investor Relations Director, Cannings Purple Level 1, 675 Murray Street We
Slide 27: Appendices
For personal use only APPENDICES ASX:NTU << AUSTRALIAN DYSPROSIUM >> 27
Slide 28: Corporate leadership
For personal use only Corporate leadership Our people embody the Northern Minerals SPIRIT, a culture of continually striving to deliver exceptional outcomes, leadership and improvements. Mark Tory Bin Cai CFO and Company Secretary Executive Officer CFO Specialist in innovative finance and EO Bin has
Slide 29: Operational leadership
For personal use only Operational leadership Our team of operational specialists have years of experience in the production of rare earths. Having experts in their fields allows us to maximise value for shareholders. Robin Jones Eben Van Rooyen Chief Operating Officer Engineering Manager COO Driven
Slide 30: Filling the supply gap
Filling the supply gap For personal use only Browns Range Full-scale potential Browns Range PP production Chinese illegal production is expected to continue falling as the Government cracks down. Even with efficiencies in electric motors, the supply/demand gap is expected to continue widening. Sourc
Slide 31: Browns Range Mineral Resources
Deposit Classification Mt TREO Dy2O3 Y2O3 Tb4O7 HREO TREO % kg/t kg/t kg/t % kg Wolverine Indicated 2.88 0.84 0.74 4.89 0.11 89 24,195,000 Inferred 1.97 0.89 0.76 5.15 0.11 88 17,588,000 Total1 4.85 0.86 0.75 4.99 0.11 89 41,786,000 For personal use only Gambit West Indicated 0.12 1.8 1.62 10.98 0.2
Slide 32: Ore Reserves
TREO TREO Dy2O3 Dy2O3 Tb4O7 Tb4O7 Y2O3 Y2O3 Deposit Class Mt kg/t kg kg/t kg kg/t kg Kg/t kg OPEN PIT For personal use only Wolverine Probable 0.72 6.17 4,458,000 0.55 400,000 0.08 57,000 3.6 2,598,000 Area 5 Probable 0.47 2.24 1,048,000 0.14 65,000 0.02 10,000 0.99 463,000 UNDERGROUND Wolverine Pro
Slide 33: Product specification available for REC
For personal use only Product specification available for REC REC samples validated by several downstream separators REC suitable for solvent extraction separation Low thorium and uranium levels First shipment – December 2018 Figures may not add due to rounding TREO = Total Rare Earth Oxides- Total
Slide 34: Beyond Browns Range
JOHN GALT Beyond Browns Range For personal use only Rock chip samples from the Boulder Ridge project confirm high-grade Heavy Rare Earths (HRE) Best results exceed 12% TREO, including up to 1.15% Dysprosium, with a dominance of HRE – up to 99% Reinforces significant growth potential in Browns Range
Slide 35: What are Rare Earths?
For personal use only What are Rare Earths? ASX:NTU << AUSTRALIAN DYSPROSIUM >> 35
Slide 36: For personal use only
For personal use only ASX:NTU << AUSTRALIAN DYSPROSIUM >> 36
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