Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Australia China Minerals Investment Summit 2013
15 slides from Arafura Rare Earths's conference presentation, May 23, 2013
Slide 1: Australia China Minerals Investment Summit
Arafura Resources Limited For personal use only Australia China Minerals Investment Summit 21-23 May 2013, Darwin Arafura Resources Limited (ASX: ARU)
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 expectations or beliefs and are subject to inherent risks and uncertainties which could cause actual values, results or performa
Slide 3: Company Snapshot
Company Snapshot For personal use only Arafura Resources ASX Code ARU Australian company developing a Shares on offer 441.3 million major Rare Earths project – the Options 11.5 million Nolans Project Market Cap @ 11c A$48.5 million World class resource located in 1-year range 10.0 – 29.5 cents the N
Slide 4: Exploration Portfolio
Exploration Portfolio For personal use only Mt Porter • Gold – Ark Mines farm-in Kurinelli • Gold Aileron-Reynolds • REEs Jervois • Iron – Ferrowest • Base & Precious farm-in Metals – Rox Resources farm-in • Iron-Vanadium Hammer Hill • Base Metals Arafura Resources Limited (ASX: ARU) 4
Slide 5: Nolans Project Highlights
Nolans Project Highlights For personal use only Nolans Project – world scale and well advanced Can supply 10% of global rare earths products this decade JORC Ore Reserve established Five REO products separated to 99% purity Project Base Case announced in August 2012 Project Initiatives underway to s
Slide 6: Nolans Bore Mineral Resources (June 2012)
Nolans Bore Mineral Resources (June 2012) For personal use only Tonnes Rare Earths Tonnes Phosphate Uranium Resources (million) % REO REO % P2O5 % U3O8 Measured 4.3 3.3 144,000 13 0.03 Indicated 21 2.6 563,000 12 0.02 Inferred 22 2.4 511,000 10 0.02 TOTAL 47 2.6 1,217,000 11 0.02 1% REO cut-off grad
Slide 7: Nolans Bore Ore Reserves (December 2012)
Nolans Bore Ore Reserves (December 2012) For personal use only Rare Tonnes Tonnes Phosphate Uranium Reserves Earths (million) REO % P2O5 % U3O8 % REO Probable 24 2.8 672,000 12 0.02 95% of Measured and Indicated Resources converted to Ore Reserves Independently prepared Ore Reserve for Nolans Bore t
Slide 8: A major supplier of 'Critical Rare Earths'
A major supplier of ‘Critical Rare Earths’ For personal use only Annual Revenue Major supplier of ‘Critical Rare Earths’ USD millions ‘Heavy Rare Earth’ projects – by Revenue* 800 700 600 500 400 300 200 100 0 Yttrium p.a. Neodymium p.a. Dysprosium p.a. Terbium p.a. Europium p.a. *Rare earth prices
Slide 9: Market Conditions Impact Project Base Case
Market Conditions Impact Project Base Case For personal use only Nolans Project Base Case: Since Base Case established: Established in August 2012 Rare earth prices have fallen Project economics over further 20 years Upward pressures on costs NPV of A$4.3 billion Depressed financial markets (10% dis
Slide 10: Cost Reductions of up to A$1 billion targeted
Cost Reductions of up to A$1 billion targeted For personal use only Arafura is actively pursuing initiatives to: Identify and apply process flow sheet improvements and design efficiencies Improve and optimise the Project’s configuration and logistics Substantially reduce capital and operating costs
Slide 11: ECE and Optimisation Program
ECE and Optimisation Program For personal use only ECE is a strategic and important partner for Arafura Long-term and supportive relationship with Arafura since 2009. Equity increased to 24.86% via SPP (A$10 million) in 2012 Project Review and Optimisation Program underway with Chinese rare earth ex
Slide 12: Funding Requirements Significantly Reduced
Funding Requirements Significantly Reduced For personal use only Targeted Capex & Initiatives & = Funding Returns Savings Prospective elimination of previously announced funding (A$30 million) required to complete Feasibility Study Immediate savings identified through project reconfiguration Total c
Slide 13: Experienced Board and Management
Experienced Board and Management For personal use only Ian Kowalick – Non-Executive Chairman Gavin Lockyer – Company Secretary & CFO Appointed 1 February 2012. Ian has worked in Over 20 years’ international experience in technical and project consulting, economic and finance and mining. Held positio
Slide 14: Summary
Summary For personal use only Nolans Rare Earths Project – world scale and well advanced Well positioned to supply 10% of global rare earths products this decade Strong representation of ‘Critical Rare Earths’ in product mix Trade-Off Study completed – project initiatives underway to significantly r
Slide 15: Arafura Resources Limited
Arafura Resources Limited Level 5, 16 St Georges Terrace Perth WA 6000 Australia For personal use only Tel: +61 8 6210 7666 arafura@arafuraresources.com.au www.arafuraresources.com.au Arafura Resources Limited (ASX: ARU)
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