Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Investor Presentation (April 2019)
25 slides from Arafura Rare Earths's investor presentation, Apr 16, 2019
Slide 1: Arafura Resources Limited April 2019 Investor Presentation
For personal use only Arafura Resources Limited April 2019 Investor Presentation
Slide 2: Important Notice – Disclaimer
Important Notice – Disclaimer For personal use only 2 This presentation has been prepared by Arafura Resources Limited (Arafura, Arafura Resources 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 conju
Slide 3: Introducing Arafura
Introducing Arafura For personal use only 3 Capital Structure ASX Code ARU ASX Share Price (10 April 2019) $0.074 Shares on Issue 721,403,114 Market Capitalisation $53.4m 12 Month Liquidity $12.0m Cash (31 March 2019) $4.9m Debt Nil Enterprise Value $48.5m Arafura Resources Limited (Arafura) is an
Slide 4: Nolans DFS Highlights
Nolans DFS Highlights For personal use only 4 Confirms Nolans as a world class NdPr project Annual NdPr production 4,357 tonnes p.a. Ultra‐low cost producer at US$25.94/kg NdPr Robust economics – average EBITDA A$377m p.a., NPV10 A$729m, IRR 17.43% Highly leveraged to NdPr (96% of RE reven
Slide 5: NdPr Market Opportunity
For personal use only NdPr Market Opportunity Arafura Resources Limited (ASX:ARU) April 2019
Slide 6: NdPr Market Opportunity
NdPr Market Opportunity For personal use only 6 Underlying demand for NdFeB magnets across all applications is forecast to grow by 6% p.a. over the period to 2030 NdFeB demand growth for EV applications is more dramatic and forecast to grow by 24% p.a. Supply‐demand balance achieved through de
Slide 7: Supply & Demand Balance
Supply & Demand Balance For personal use only 7 China continues to dominate the global supply chain being the world's largest producer accounting for about 80% of NdPr for global NdFeB magnet production Supply reforms, industry consolidation and higher environmental standards will constrain Chin
Slide 8: Nolans Project
For personal use only Nolans Project Arafura Resources Limited (ASX:ARU) April 2019
Slide 9: Long Life Asset
Long Life Asset For personal use only 9 RESOURCES TONNES (m) RARE EARTHS TREO % PHOSPHATE P2O5 % NdPr Enrichment % 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 As announced on 7 June 2017. 1.0% TREO cut‐off grade. Numbers may not compute exactly due
Slide 10: 100% Australian Domiciled
100% Australian Domiciled For personal use only 10 Arafura Resources Limited (ASX:ARU) April 2019
Slide 11: Single Site Close to Key Infrastructure
Single Site Close to Key Infrastructure For personal use only 11 Stuart Highway – 10 km east Alice Springs railyard, airport and other services – 135 km south Amadeus natural gas pipeline – adjacent to project site Water supply – 30 km south Tailings and process wastes – at site Single s
Slide 12: Process Flowsheet
Process Flowsheet For personal use only 12 Arafura Resources Limited (ASX:ARU) April 2019
Slide 13: DFS Financials & KPIs
DFS Financials & KPIs For personal use only 13 Long‐life asset – 23‐year mine life Significant supply – 4,357 tonnes p.a. NdPr Robust economics – EBITDA A$377m p.a. Ultra low OPEX – US$25.94/kg NdPr Capital payback – Year 5 Highly leveraged to NdPr price Refer ASX announcement 7 February 2019 Nolans
Slide 14: NdPr Pricing
NdPr Pricing For personal use only 14 80% of Nolans revenue derived from NdPr oxide Historical NdPr Oxide Price New supply pipeline will not be sufficient to meet demand EV drivetrains rely on high quality and high efficiency NdFeB magnets Roskill forecast a tight market and escalating NdPr
Slide 15: Project Implementation
For personal use only Project Implementation Arafura Resources Limited (ASX:ARU) April 2019
Slide 16: Project Timeline – 2019
Project Timeline – 2019 For personal use only 16 Arafura Resources Limited (ASX:ARU) April 2019
Slide 17: Marketing & Offtake
Marketing & Offtake For personal use only 17 • NdPr diversification of supply risk for those not aligned with the Made in China 2025 strategy. • Japan – NdFeB magnet manufacturers • Europe & Korea – automotive OEMs and wind turbine makers • China –NdFeB magnet manufacturers with significant export m
Slide 18: Project Funding Strategy
Project Funding Strategy For personal use only 18 Arafura looking to secure a A$1,146m(1) in new capital to execute the Nolans Project Potential capital sources include equity, debt, JV and/or project selldown with a strategic investor DFS completion and environmental approval are critical ena
Slide 19: Production Timeline
Production Timeline For personal use only 19 Arafura Resources Limited (ASX:ARU) April 2019
Slide 20: Contact
For personal use only Contact: Level 3, 263 Adelaide Terrace Perth, WA, 6000, Australia T: +61 8 6210 7666 E: arafura@arultd.com April 2019 Investor Presentation
Slide 21: Appendices
For personal use only Appendices Arafura Resources Limited (ASX:ARU) April 2019
Slide 22: Experienced Board
Experienced Board For personal use only 22 MARK SOUTHEY CHRIS TONKIN NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR Mark Southey has previously held senior Chris Tonkin has over 35 years’ experience as a executive positions with Honeywell and ABB senior business executive with a broad industry both i
Slide 23: Experienced Management
Experienced Management For personal use only 23 PETER SHERRINGTON RICHARD BRESCIANINI CHIEF FINANCIAL OFFICER & COMPANY GENERAL MANAGER EXPLORATION & SECRETARY DEVELOPMENT Peter commenced employment with Arafura in 2008 as Richard has over 30 years’ experience in the Commercial Manager and was appoi
Slide 24: Capital Cost Breakdown & NPV Sensitivity
Capital Cost Breakdown & NPV Sensitivity For personal use only 24 Key Sensitivities Arafura Resources Limited (ASX:ARU) April 2019
Slide 25: Environmental Approvals Secured
Environmental Approvals Secured For personal use only 25 NT Environment Protection Authority (EPA) Recommends Environmental Approval “The NT EPA considers that …… the Project can be managed in a manner that ….. avoids significant or unacceptable environmental impacts and risks.” Assessment completed
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