Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Investor Presentation (September 2009)
19 slides from Arafura Rare Earths's investor presentation, Sep 21, 2009
Slide 1: Arafura Resources Ltd Investor Presentation
For personal use only Arafura Resources Ltd Investor Presentation Sydney, 21 September 2009
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 corporate structure
Arafura corporate structure For personal use only As at 17 September 2009 Shares on issue 259.2 million Market capitalisation (ASX:ARU closing price @ 16 Sept 2009) @ A$1.20 = ~A$310M Top shareholders: ANZ Nominees 36.6% ECE 24.9% Board & management 3.6% Citicorp Nominees 2.1%
Slide 4: Rare earth applications
Rare earth applications For personal use only
Slide 5: Rare earth demand will grow strongly
Rare earth demand will grow strongly For personal use only Demand to increase +60,000 tonnes by 2014 200,000 180,000 160,000 140,000 120,000 Tonnes 100,000 Light REO 80,000 Heavy REO 60,000 40,000 20,000 0 2009 2010 2011 2012 2013 2014 Source: BCC Research, June 2009 – ‘Rare Earths worldwide market,
Slide 6: Rare earth prices will rise with demand
Rare earth prices will rise with demand For personal use only The impact on Nolans rare earth value $25.00 $20.00 US$ per kg $15.00 Light REO $10.00 Heavy REO $5.00 $0.00 July 2009 2010 2011 2012 2013 2014 Source: BCC 2009 REO report. Forecasts 20-30% CAGR increase in REO prices over the next five y
Slide 7: Phosphate revenue will be higher
Phosphate revenue will be higher For personal use only Technical v Fertiliser Grade Phosphate $2,500 $2,000 US$ per tonne P2O5 $1,500 Technical Grade Fertiliser Grade $1,000 $500 $0 Source: CRU British Sulphur 2009 y Higher recoveries for better quality phosphate will increase revenue y Expansion in
Slide 8: Outlook for Rare Earths / Phosphate
Outlook for Rare Earths / Phosphate For personal use only y Strong growth in demand is forecast y Prices will strengthen y The demand forecast means y Nolans (and other new projects) must come on line to meet this demand y China will need to increase output y And there still may be a shortage y Nola
Slide 9: Environmental & social benefits – Nolans product mix
Environmental & social benefits – Nolans product mix For personal use only REO Production Component End product Potential environmental savings Reduces NOX which aggravates CeO2 3,500t Auto catalysts 25 million cars respiratory problems, causes acid rain and damages aquatic environments. Ultra viole
Slide 10: Nolans Project
Nolans Project For personal use only y World-class, 100%-owned y Rare earths-phosphate-uranium project y Easy access to available infrastructure y Strategic investment partner (ECE) with FIRB approval for up to 25% strategic equity
Slide 11: Nolans resource
Nolans resource For personal use only y Current total resources of 30.3 million tonnes y Estimated mine life 20+ years y Mineralisation present over 150 hectares and exposed at the surface y Resource contains − 848,000 tonnes of rare earths (REO) − 3.9 million tonnes of phosphate (P2O5) − 13.3 milli
Slide 12: Nolans Project flowsheet
Nolans Project flowsheet For personal use only
Slide 13: Pilot plant success
Pilot plant success For personal use only y Feasible product – successful robust extraction process developed in conjunction with ANSTO y High recovery rates Pilot plant for technical grade phosphoric acid has been completed with improved indicative results for both Phosphoric acid pilot plant quali
Slide 14: Recoveries have improved
Recoveries have improved For personal use only BFS recovery Previous estimate HMS Concentration 90% 90% Rare Earths 86% 80% (recovery to carbonate) Phosphoric Acid 85% 80% (technical grade) Uranium 80% 80% Nolans Project Production p.a. Price rare earth carbonate (tonnes) (June 09) Rare Earths REO 2
Slide 15: The feasibility study has identified lower costs
The feasibility study has identified For personal use only 1. Lower operating costs Hydrochloric acid consumption down 30% (& more maybe saved) Sulphuric acid consumption down 20% Have replaced 50% of caustic with lime, reducing costs 2. Lower capital costs − Plant can be modularised, shipped and th
Slide 16: Summary of achievements in 2009
Summary of achievements in 2009 For personal use only y Improved recoveries for rare earths and phosphoric acid y Improved phosphoric acid quality to technical grade y Lower operating costs quantified – more identified y Lower capital costs identified – more work to be undertaken y Chemical plant en
Slide 17: Current scope of works
Current scope of works For personal use only Mine site design Chemical plant To commence asap On track • Mine pit & waste dump design • Chemical supply logistics • Concentration plant • Detailed leach plant • Haulage roads • Detailed rare earths plant • Environmental studies • Detailed phosphoric ac
Slide 18: Project timeline
Project timeline For personal use only 2010 2011 2012 Mine design + site plan Mine EIS Chemical Plant design + location study Chemical Plant EIS Project financing Construction
Slide 19: Outlook – with ECE funding
Outlook – with ECE funding For personal use only Complete Bankable Feasibility Study Mine site feasibility can commence Determine chemical plant location Environmental works to commence Technical studies completed in 2010 2010 and 2011 dedicated to project funding
Arafura Resources — Investor Presentation (September 2009) on 6ix