Rarex Limited · ASX:REE
Rarex — Investor Presentation (August 2023)
58 slides from Rarex's investor presentation, Aug 24, 2023
Slide 1: Low Risk Rare Earths via Phosphate
Low Risk Rare Earths For personal use only via Phosphate James Durrant ASX: REE OTCQB: REEEF August 2023 rarex.com.au
Slide 2: Disclaimer & Competent Persons' Statements
Disclaimer & Competent Persons’ Statements For personal use only Investor Relations This presentation contains summary information about RareX Limited (REE) and is current as of 24 August 2023 and is authorised for release by the Board. The information in this Competent Person’s Statement - Geology:
Slide 3: Cummins Range Project overview
DSO Phosphate Enabled Wyndham Port Rare Earths For personal use only Kununurra RareX Flagship Cummins Range Project Ord River A Direct Shipping Ore (DSO) Hydro Plant Phosphate enabled Rare Earths Critical Minerals Project – Scoping Study released. Mineral Stage 1: DSO Phosphate fertiliser Corridor S
Slide 4: Rare Earths Phosphorus
For personal use only RE P 57-71 15 Rare Earths Phosphorus
Slide 5: RareX Value Proposition
RareX Value Proposition 1 2 3 For personal use only Positive scoping study on a large Team able to engineer, approve, deposit fund and deliver Low-risk 3-Staged development Action orientated board Investments in strategic companies IRR – 39% pre tax, 27% post tax Cameron Henry – Process plant constr
Slide 6: Corporate Snapshot
Corporate Snapshot Well suited for value growth For personal use only Capital Structure Shareholders ASX Code REE Top 50 Shareholders ~38% OTCQB REEEF Share Price (22.08.2023) A$0.038 Number of Shareholders ~5,437 Major Shareholders Simon Lee AO (5.2%) Shares on Issue 683M Market Capitalisation A$25
Slide 7: Cummins Range Project
Cummins Range For personal use only Project Fertiliser for Critical Minerals 15 57-71 P Phosphorus RE Rare Earths
Slide 8: 2023 JORC Resource
2023 JORC Resource 519.3Mt @ 4.6% P2O5, 0.32% TREO For personal use only Australian Undeveloped Rare Earth Deposits 2.0 Measured TREO Indicated TREO 1.6 Inferred TREO Market Cap, AUD (22.08.2023) 1.2 Tonnes Contained, Mt 0.8 $0.51B 0.4 $0.24B $0.13B $0.15B $0.17B $0.11B $0.026B $0.039B 0.0 Cummins N
Slide 9: Strategic Global Markets Mega Trends
2 Strategic 2 Global Markets Mega Trends Food Security The Electric Revolution For personal use only Population growth Wind farms Another 1.7B people by 2050 to a 200kg NdPr per MW of turbine total of 9.7B Net Zero goals by 2050 Depleting soils Electric Vehicles Intensive farming and inefficient 1kg
Slide 10: Simplified path to operations
Simplified path to operations a de-risked way to Rare Earths 3 Project Stages Tactical Advantages For personal use only Stage 1: DSO ü Existing infrastructure bulk ready with road and port Organic Rock Phosphate ü Local product placement 23% P2O5, 5x bioavailability opportunities c. 1Mt from surface
Slide 11: Positive economics and low initial capital
Positive economics and low initial capital From a 3-Staged development Year 1-3 4-5 5-13 13-18 Rate Price EBITDA For personal use only $45M Stage 1 – DSO 123/$t 0.3Mtpa $254/t $100/t DSO Grade $304M Stage 2 – Regolith Mining 259$/t 0.5Mtpa $553/t $232/t High Grade Mid Grade $63M Stage 3 – Fresh Rock
Slide 12: Stage 1: DSO rock phosphate
Stage 1: DSO rock phosphate Premium direct application fertiliser Mined from a simple quarry – a low risk platform for growth High value-in-use Next steps For personal use only ü 23% phosphate § Product R&D with OrdCo ü 5x bioavailability § Advance placement into retail ü West Australian made and br
Slide 13: Stage 2: Phos-RE mineral con
Stage 2: Phos-RE mineral con Phosphate mineral concentrate with RE The proposed installation of a beneficiation plant to upgrade the Stage-2 lower grade phosphate Tails For personal use only Metallurgical Highlights Market Focus Dewatering Bene ü Positive beneficiation India Crushing Milling Rougher
Slide 14: Stage 3: Fresh ore concentrate with upside potential
Stage 3: Fresh ore concentrate with upside potential The proposed modification of Stage 2 plant and potential installation of the Rare Earth value chain Rare Earth Mineral Deportment Fresh Rock For personal use only Positive analysis: Transition to Fresh Encouraging results from Mineralogy revealed:
Slide 15: Monetising in a sustainable manner
Monetising in a sustainable manner ESG Framework What we’re currently For personal use only doing • WEF consistent designed by Top5 advisor ü TO negotiations towards a Mining • Aligned to stakeholders' expectations Heritage Agreement • Mapped out through exploration, ü Environmental Baselines +50% d
Slide 16: Team to deliver
For personal use only Team to deliver
Slide 17: Director quote on offtake markets
For personal use only “I’ve been supporting the management team in defining the product suite and identifying prospective offtake markets and customers. Through this process the value-in-use of Stage 1 and Stage 2 products is now increasingly apparent, and I look forward to supporting the team in pr
Slide 18: An evolved board of company-building directors
An evolved board of company-building directors Danny Goeman John Young For personal use only Non-Executive Director Non-Executive Director Offtake, Marketing, Geology, Development, Shipping Growth Ex FMG director of sales and Co-founder and executive director of marketing and advisor to the CEO, suc
Slide 19: Growing in-house capability
Growing in-house capability Focus: Development & Ops James Durrant Greg Wynne For personal use only Chief Executive Officer Senior Geologist Mining and Mechanical Engineer with nearly 20 years Geologist, project manager across Tier 1 operations and and mines rescue qualified junior company project d
Slide 20: Stitching together the Supply Chain
Stitching together For personal use only the Supply Chain
Slide 21: Infrastructure in place
Infrastructure in place Ready for bulk operations B 2 and future processing Wyndham C For personal use only Kununurra Fundamentally Good Enabling the Proposed Hydro Power Infrastructure Approach D 390 km Lake Argyle A road network becoming ü Bulk commodities need good Tanami Intersection 3 Ord River
Slide 22: Mineral corridor in place
Mineral corridor in place Sealed roads being installed Mine to Tanami Great Northern Highway For personal use only 50km of station fence-line 390km of existing sealed highway § Miscellaneous License process § Linking The Tanami turn off to about to commence, heritage Wyndham Port agreement includes
Slide 23: Port Wyndham
Port Wyndham Bulk ready 1 Cummins Port Good facilities for tactical integration For personal use only Range Wyndham Managed by CGL with operations Potential to use new facilities Lake Argyle, 3 for haulage, fuel, and roll on roll off ü MOU with Agrimin (ASX: AMN) to 3 Ord River ü Good personal and c
Slide 24: Lake Argyle – Hydro Plant
Lake Argyle – Hydro Plant Optionality for a Low Carbon Operation For personal use only 1 Port Wyndham Optionality for low 2 Cummins 1 carbon facilities Range Lake Argyle, 2 Ord River • Electrified haulage fleets Hydro Plant • Brownfield infrastructure at the Western Australia Ord River old Argyle Di
Slide 25: Good corporate citizen in a collaborative region
Good corporate citizen in a collaborative region OrdCo MOU For personal use only Collaborating to develop and place Phosphate products locally • Product R&D • Product development roadmap • Local distribution Agrimin MOU Collaborating across the supply chain from trucking to OGV loading • Infrastruct
Slide 26: Project execution
For personal use only Project execution
Slide 27: Positive progress through approvals roadmap
Positive progress through approvals roadmap Heritage Baselines For personal use only Good progress on Next steps primary approvals Mining agreement § Jaru consultation on agreed agreement key terms Technical ü Mining lease application Referral § Execute mining heritage studies ü Flora & Fauna baseli
Slide 28: Project well aligned to government initiatives
Project well aligned to government initiatives Kimberley location For personal use only Halls Creek, Billiluna – Jaru and Tjurabalan • Regional Grants Programme (up to $15M) • Kimberley Development Commission Grants • State and federal budget inclusion • $15B National Reconstruction Fund Critical mi
Slide 29: The Future is Bright
The Future is Bright… Fast Track to DSO Operations Catalysing a Large Critical Minerals Project For personal use only 2023-24 2025 2026+ Stage 1 – DSO ü Global DSO resource § FID § Continued operations ü Scoping Study § Installation § Lock in product placement § Operations § Close infrastructure gap
Slide 30: Board of Directors
Board of Directors Jeremy Robinson – Non-Executive Chairman John Young – Non-Executive Director Danny Goeman – Non-Executive Director For personal use only Shaun Hardcastle – Non-Executive Director Cameron Henry – Non-Executive Director Company Secretary Oonagh Malone Chief Executive Officer James D
Slide 31: Facts, Figures & Analysis
Facts, Figures & For personal use only Analysis
Slide 32: Contents
CONTENTS 1. Detailed Project Economics 2. Strategic Products Global Demand For personal use only Double Exposure 3. Cummins Range Resource 4. 1. Strategy 2. Tenements 3. Investments
Slide 33: Detailed Project Economics
Detailed For personal use only Project Economics
Slide 34: Key inputs and assumptions
Key inputs and assumptions KH, JM: prettify if necessary – make stylized summary align to this. General Parameters and Assumptions For personal use only Discount Rate 8% 8% of direct and indirect capital costs for Owners Costs each stage 2% of deployed capital each operating Sustaining Capital year
Slide 35: Costs
Costs CAPEX Stage 1 [A$m] Stage 2 [A$m] Stage 3 [A$m] Mine 0.5 17 - Processing 0.25 164 63 NPI 10 4 - For personal use only New road 15 - - TSF - 12 - Port upgrades 9 - - Owners Costs (incl. 3 56 - EPCM) Subtotals 37 253 63 Contingency (20%) 7 51 - Total 45 304 63 Stage 1 Stage 2a Stage 2b Stage 3 O
Slide 36: Outcomes
Outcomes Low-Case Mid-Case High-Case Product Pricing [A$/t] [A$/t] [A$/t] Stage 1 - DSO Rock Phos 203 254 304 Stage 2a – High Phos-RE Con 515 584 652 For personal use only Stage 2b – Mid Phos-RE Con 480 545 611 Stage 3 - RE-Phos Con 404 468 532 Economic Performance Low-Case Mid-Case High-Case 2,500,
Slide 37: Key economic graphs
Key economic graphs 100% Resource Classification Inferred Indicated 90% 80% 70% 60% For personal use only 50% 40% 30% 20% 10% 0% 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 Phosphate Price Analysis NdPr Oxide Price Compariso
Slide 38: Strategic Products Global Demand
Strategic Products For personal use only Global Demand Double Exposure
Slide 39: The EV Transition Translating into an Emerging Deficit of NdPr Supply
The EV Transition Translating into an Emerging Deficit of NdPr Supply Drivers of EV demand Global Passenger Car Outlook - Bloomberg NEF For personal use only 1 Government commitments Internal Hybrid Fuel Cell Plug-in Battery electric combustion hybrid by 2050 Lynas annual output in 2021: 5,462 NdPr
Slide 40: Growing Phosphate Fertiliser Demand Augmented with LFP Battery
Growing Phosphate Fertiliser Demand Augmented with LFP Battery High Value LFP Battery & Phosphate Market Expansion For personal use only percentage of global market share of projected ARK forecast projected UBS forecast LFP batteries in 2021 for 2026 for 2030 Phosphate Rock, USD/Mt World Population
Slide 41: NdPr Enabling Decarbonisation of our Society
NdPr Enabling Decarbonisation of our Society For personal use only NdFeB permanent magnet motors are crucial in reducing greenhouse gas emissions as they are at the heart of so many electric mobility solutions. Green, clean electric mobility solutions require ethical, sustainable, transparently prod
Slide 42: NdPr Enabling Decarbonisation of our Society
NdPr Enabling Decarbonisation of our Society For personal use only Each electric vehicle ~1 contains kg of all automotive applications, including hydrogen vehicles, have selected a of NdPr oxide Rare Earth NdFeb permanent magnet electric motor for their default driveline solution
Slide 43: Global EV Mega Trend Continues to Accelerate
Global EV Mega Trend Continues to Accelerate For personal use only The global automotive “Global carmakers now industry surpassed target to spend USD in 2022 515b* for EVs & 1 batteries. Including Tier 1 suppliers, investments should have surpassed trillion USD 1 trillion.” Jeremy Robinson USD MD Ra
Slide 44: Supported By Global Legislation To Meet Net Zero Targets By 2050
Supported By Global Legislation To Meet Net Zero Targets By 2050 More and more countries have a clear roadmap to phase out internal combustion engine (ICE) For personal use only vehicles. More than 30 countries have clear electrification targets or ICE bans for cars. Source https://cleantechnica.com
Slide 45: Translating into an Emerging Deficit of NdPr Supply
Translating into an Emerging Deficit of NdPr Supply For personal use only “With every Global BEV & PHEV Sales / EV volumes WW passenger card outlook / BNEF Plug-In Hybrids Battery Electric Vehicles EV Market Share in % incremental, additional Internal combustion Hybrid Fuel Cell Plug-in hybrid Batte
Slide 46: NdPr Pricing And Market Information
NdPr Pricing And Market Information The Market Overall market sentiment is positive, due to significant progress in the E- Cummins Range Basket Price For personal use only mobility industry and rising EV sales volumes. The price has been declining since March 2022, impacted by global Distribution ec
Slide 47: Cummins Range JORC 2012 Mineral Resource
Cummins Range For personal use only JORC 2012 Mineral Resource
Slide 48: Cummins Range Deposit
Cummins Range Deposit Deposit Location Overview Remote but Well Connected 130km SW of Halls Creek access via Tanami Road For personal use only Deposit at surface ease of exploration Jaru Traditional Owners consulted and supportive Part of the Great Sandy Desert on unused pastoral lease Connected to
Slide 49: 2023 JORC Resource
2023 JORC Resource 519.3Mt: Global Resource (JORC 2012) 4.6% P2O5; 0.32% TREO 2.5% P2O5 Tonnes TREO P2O5 NdPr Nb2O5 HREO For personal use only Grade Cut Mt ppm % ppm ppm ppm 1.6Mt TREO 24Mt P O 2 5 Indicated 66.6 5,010 6.8 1,100 830 290 contained contained Inferred 452.7 2,900 4.2 630 550 170 Basis
Slide 50: Resource Comparison
Resource Comparison Highlights Cummins Range Australian Undeveloped Rare Earth Deposits For personal use only 2.0 Scoping Measured TREO 1.6 Indicated TREO BFS Inferred TREO Market Cap, AUD (22.08.2023) 1.2 Tonnes Contained, Mt 0.8 BFS $0.51B BFS 0.4 $0.24B BFS Exploration BFS $0.15B $0.17B $0.11B $0
Slide 51: RareX Exploration
RAREX RARESXPLORATION
Slide 52: RareX tenements and prospectivity
RareX tenements and prospectivity For personal use only Tenement ID Name Jurisdiction Locality Prospectivity E80/5092 Cummins Range WA Kimberley Rare Earths and Phosphate M80/0648 Cummins Range WA Kimberley Rare Earths and Phosphate E80/5372 Cummins Range WA Kimberley Rare Earths and Phosphate E80/5
Slide 53: Strategy
Strategy Maintain good investments For personal use only Kincora – Cu-Au Lead explorer in Macquarie Arc is Australia’s foremost copper porphyry district and truly world-class Cosmos - Li Emerging lead explorer in the corvette east district of Ontario Canada, proximate to Patriot Battery Minerals CRE
Slide 54: Kincora Copper
Kincora Copper Copper-Gold For personal use only Significant shareholding in Kincora Copper copper explorer Leading leading explorer in the Post KCC1 shareholder approval Macquarie Arc ü 45 million shares ü World class Cu-Au province ü Approximately 18% ownership ü Surrounded by majors and Tier 1 ü
Slide 55: Cosmos Exploration
Cosmos Exploration Lithium & Rare Earth upside For personal use only Investment Emerging lead Lithium ü 10 million shares (c. 18%) explorer ü 25% free carry to BFS on Ontario, Canada Orange East, NSW project. ü Corvette Far East & Lasalle ü ASX:C1X ü Near Patriot Battery Metals ü Aggressive explorat
Slide 56: Canadian Rare Earth Company
Canadian Rare Earth Company Rare earth trading For personal use only Investment CREC strategy ü 25 million shares ü Canadian based Large and Robust Rare Earth and Critical ü LL.V Minerals Resource Base building and expanding on existing resource base to feed Senior executive commercial sales and del
Slide 57: References
For personal use only References
Slide 58: List Of Sources For Grade And Resource Graphs
List Of Sources For Grade And Resource Graphs Resource RareX Source of data Arafura Source of data ASM Source of data VHM Source of data For personal use only https://wcsecure.weblink.com.au/pdf/REE/0266088 https://wcsecure.weblink.com.au/pdf/ARU/026519 https://asm-au.com/dubbo-project/resources-and