Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Corporate Update (November 2022)
19 slides from Arafura Rare Earths's corporate update, Nov 8, 2022
Slide 1: Offtake Update Presentation (ASX Announcement)
ASX ANNOUNCEMENT OFFTAKE UPDATE PRESENTATION 8 November 2022 For personal use only Arafura Rare Earths Limited (ASX: ARU) (“Arafura” or the “Company”) is pleased to attach a copy of its offtake update presentation which will be used for briefing to analyst groups. -ENDS- For further information cont
Slide 2: Nolans Project Offtake Update November 2022
8/11/2022 Nolans Project For personal use only Offtake Update November 2022 (ASX:ARU) 1
Slide 3: Disclaimer
8/11/2022 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: Inaugural Binding Offtake Agreement
Inaugural 8/11/2022 Binding For personal use only Offtake Agreement (ASX:ARU) 3
Slide 5: Hyundai and Kia sign cornerstone binding NdPr offtake agreement
8/11/2022 1 Hyundai Motor Company and Kia Corporation sign ASX cornerstone binding NdPr offtake agreement for an initial seven (7) year term (with mutual agreement extension of Announcement For personal use only five (5) years). Hyundai and Kia 2 Agreement provides for the supply of annual contract
Slide 6: Offtake & Potential Strategic Investment
8/11/2022 Offtake & Potential Strategic Investment For personal use only Offtake Strategy Arafura’s offtake strategy targets original equipment manufacturers (OEMs) from geographic regions with supportive Export Credit Agencies and it continues to receive strong interest from a range of parties. The
Slide 7: A World Class Project
8/11/2022 A World Class Project For personal use only (ASX:ARU) 6
Slide 8: Delivering to an ESG World
8/11/2022 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 secured
Slide 9: Advanced Manufacturing Onsite
8/11/2022 Advanced Manufacturing ➔ 5% of global NdPr oxide demand for energy transition applications Onsite ➔ Close to existing key infrastructure ˃ Ore to oxide at a single site ➔ Key approvals in place: Mining Licence, Environmental and Native For personal use only ˃ Permitted residue storage Titl
Slide 10: Long Life Asset
8/11/2022 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 11: Offtake update
8/11/2022 Offtake For personal use only update (ASX:ARU) 10
Slide 12: Offtake
8/11/2022 Offtake Arafura is targeting 85% of Planned Production1 as binding offtake for FID (Binding Offtake Target). Offtake Discussion Group Location NdPr Oxide % of Binding For personal use only (tpa)2 Offtake Target Secured Offtake (binding agreement) Hyundai & Kia Korea 1,500 40% Binding offta
Slide 13: Offtake & Supply Chain
8/11/2022 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 Conver
Slide 14: NdPr Market
8/11/2022 NdPr For personal use only Market (ASX:ARU) 13
Slide 15: NdPr for Magnets Critical Component in Clean Energy Sector
8/11/2022 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 16: NdPr Resource Project Pipeline
8/11/2022 NdPr Resource Project Pipeline For personal use only NdPr Oxide Long Life 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 Approv
Slide 17: NdPr Supply Gap
8/11/2022 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 w
Slide 18: Offtake & link to Project Funding
Offtake & 8/11/2022 link to For personal use only Project Funding (ASX:ARU) 17
Slide 19: Funding Structure
Funding 8/11/2022 Structure Project Funding MMI Grant For personal use only Requirement Debt MLAs appointed, Societe Generale and NAB MLAs seeking to arrange US$510m (inclusive of cost over run) debt financing Balance of the debt financing will be targeted through untied ECA funding and to the exten
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