Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Mines and Money New York 2017
15 slides from Arafura Rare Earths's conference presentation, May 4, 2017
Slide 1: Nolans: A Source of High-Value Magnet Feed (NdPr) Rare Earths
For personal use only Arafura Resources Nolans: A Source of High-Value Magnet Feed (NdPr) Rare Earths Mines and Money New York May 2017 Arafura Resources Limited (ASX: ARU)
Slide 2: Disclaimer
Disclaimer For personal use only Important Notice This presentation has been prepared by Arafura Resources Limited (Arafura Resources). It 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
Slide 3: Company Snapshot
Company Snapshot For personal use only ASX listed company developing the Nolans Rare Earths Project in Australia Nolans 100% owned, no debt, uncomplicated ownership and capital structure Afforded major project status by Northern Territory and Australian governments Project approvals well advanced wi
Slide 4: Capital Structure
Capital Structure For personal use only ASX Code ARU Shareholder Spread 1-Year Range 4.1 – 10.5 cents China Australia (ECE) Market Cap 546.9m Shares @ 7.0c A$38.3 million* 48.5% 20.1% Cash at 31/03/17 A$11.8 million Other Asia 1.5% SPP Cash Injection Post 31/03/17 A$3.1 million Debt Nil *Excludes 6.
Slide 5: Nolans – A Clear Path to Market
Nolans – A Clear Path to Market For personal use only 20+ year resource CAPEX: US$680m3 Low cost operation OPEX: US$6.23/kg TREO3 Close to vital infrastructure: energy, water and transport Targeting RE offtake customers in: Japan Germany Korea USA Phosphoric acid sales targeted for Asian region 1. C
Slide 6: Marketing and Funding Strategy
For personal use only Marketing and Funding Strategy Arafura Resources Limited (ASX: ARU)
Slide 7: The NdPr Market Opportunity
The NdPr Market Opportunity For personal use only Arafura Resources Limited (ASX: ARU) 7
Slide 8: Established Markets Steady – Growth is in New Applications
Established Markets Steady – Growth is in New Applications For personal use only Established magnet market demand steady Magnet growth being driven by clean technologies Source: Adamus Intelligence, Arnold Magnetic Technologies, Japanese industry participants, Roskill Arafura Resources Limited (ASX:
Slide 9: Arafura's Marketing Strategy and Products
Arafura’s Marketing Strategy and Products For personal use only 2017 focus is on cementing offtake alliances with strategic partners 95% of revenue to be derived from customers in Japan, Germany, Korea and the USA Equity will remain primary source of funds in short term Debt finance will be a signif
Slide 10: Targets for 2017-18
For personal use only Targets for 2017-18 Arafura Resources Limited (ASX: ARU)
Slide 11: Targets for 2017-18
Targets for 2017-18 For personal use only To take advantage of the pending NdPr supply shortfall we will complete the following: Final piloting – results to be reported throughout 2017 Fast track where possible detailed design to Bankable Feasibility status Obtain environmental approval – 2017 Forma
Slide 12: Value Proposition
Value Proposition For personal use only Unit Operating Costs After By Product Credits (US$ per kg Forecast Production) 30 70 25 60 50.83 61.49 57.33 50 20 US$/kg NdPr 19.89 US$/kg TREO 19.44 40 15 42.17 14.43 30 31.21 10 24.38 9.83 10.07 20 5 6.23 10 0 0 ARU GGG LYC PEK HAS NTU** Per kg TREO Source:
Slide 13: Contact
For personal use only Contact: Level 3, 263 Adelaide Terrace Perth, WA, 6000. Australia. T: +61 8 6210 7666 E: arafura@arultd.com Arafura Resources Limited (ASX: ARU)
Slide 14: Appendix A: Nolans Mineral Resources
Appendix A: Nolans Mineral Resources For personal use only Tonnes Rare Earths Tonnes Phosphate Uranium Resources (million) TREO % TREO P2O5 % U3O8 lb/t Measured 4.9 3.2 158,000 13 0.54 Indicated 30 2.7 816,000 12 0.44 Inferred 21 2.3 489,000 10 0.36 TOTAL 56 2.6 1,462,000 12 0.42 1% TREO cut-off gra
Slide 15: Appendix B: Information on RCR Graphs
Appendix B: Information on RCR Graphs For personal use only Key Assumptions • Enterprise Value (“EV”) is based on market capitalisation as at February 3 2017 less reported cash on hand, plus reported debt, as at December 31 2016. ASX-Listed Peer Group Companies • Exchange rate of AUD1 = USD 0.76. Co