Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Shareholder Meeting (October 2020)
23 slides from Arafura Rare Earths's shareholder meeting presentation, Oct 22, 2020
Slide 1: AGM Presentation October 2020
21/10/2020 AGM For personal use only Presentation October 2020 (ASX:ARU) 1
Slide 2: For personal use only
21/10/2020 For personal use only 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 conjunction with and full
Slide 3: Our Market Opportunity | Critical Minerals Supply Chain Vulnerable
21/10/2020 Our Market Opportunity | For personal use only Critical Minerals Supply Chain Vulnerable (ASX:ARU) 3
Slide 4: Global Supply Chain
Global Supply Chain 21/10/2020 Ore Concentrate Oxide Metal Alloy Magnet Component EV For personal use only Market Value x 10x 100x 1000x CHINA Arafura’s Alternative Supply Chain China currently exerts control over Arafura plans to produce Oxide in Nolans offtake strategy focused on Governments aroun
Slide 5: Key Diversification Drivers
21/10/2020 Key Diversification Drivers For personal use only POLITICAL FOCUS COVID-19 has fast tracked the ON CRITICAL RAW requirement to diversify supply risk MINERALS Looming NdPr supply & demand imbalance Global priority to rebuild and invest in value-add mineral processing capabilities reducing
Slide 6: Critical Minerals Supply Chain Initiatives
21/10/2020 Rest of World’s 2050 NET-ZERO 2060 CARBON EMISSIONS NEUTRAL TARGET TARGET Critical Minerals Europe multiple China has new 5- initiatives to remove year plan with materials supply emphasis on For personal use only Initiatives risks for future deployment of low carbon economy renewables, e-
Slide 7: Australia's Critical Minerals Initiatives
21/10/2020 Australia’s 1 Critical Minerals MARCH 2019 For personal use only Austrade Australian Critical 2 Minerals Prospectus and Initiatives NOVEMBER 2019 NAIF-EFA co-investment barriers Australia’s Critical Minerals Strategy 3 lifted NOVEMBER 2019 EFA mandate via $4.4 bn 4 Defence Export Facility
Slide 8: NdPr Market Opportunity
21/10/2020 NdPr Market Opportunity For personal use only DEMAND Accelerated demand driven by government policy for renewables Automotive sector is forecast to consume nearly 50% of NdFeB supply Offshore wind energy sector will accelerate with strong growth from new projects SUPPLY China forecast to
Slide 9: Nolans Project
21/10/2020 Nolans For personal use only Project (ASX:ARU) 9
Slide 10: Corporate Snapshot
21/10/2020 Corporate Nolans world class NdPr project – Capital Structure Snapshot DFS completed February 2019 ASX Code ARU For personal use only NdPr is the key input for high ASX Share Price (21 October) $0.105 performance NdFeB permanent Shares on Issue 1,168m magnets Market Capitalisation $122.62
Slide 11: 2020 - Getting Nolans Shovel Ready
21/10/2020 2020 - Getting Nolans Shovel Ready Native Title Execution For personal use only Agreement Readiness Programs Mining Licence DFS & Offtake & Project Piloting Funding Federal Major Updated Life Ore to Discussions Project Status of Mine Oxides IN PROGRESS Federal & NT Appointment of KBR Envi
Slide 12: Nolans a Strategic Resource
21/10/2020 Nolans a Strategic Globally strategic and 100% Australian domiciled Sound project economics with 39-year mine life Resource For personal use only Ore to oxide at single site with approved waste management plan Nolans aims to supply Phosphoric acid product places Nolans in a unique 5-10% o
Slide 13: Robust Economics
21/10/2020 Robust Economics DFS in 2019 and Ore Reserves updated 2020 Capital cost A$1026m For personal use only includes processing to oxide and includes a fully costed and permitted waste disposal solution Low cost producer at US$23.71/kg NdPr (current price US$47.8/kg) 39-year mining inventory wi
Slide 14: Nolans National Benefits
21/10/2020 Nolans National Benefits Australia’s first vertically integrated supply chain for For personal use only NdPr oxide Globally significant resource of NdPr oxide Jobs created in the Northern Territory (ASX:ARU) As announced on 16 March 2020 14
Slide 15: Our ESG Priorities
21/10/2020 Our ESG Priorities Alignment with Sustainable Operations Global Standards For personal use only Indigenous Sustainable Quality Product Engagement Social Performance Strategy Equator Principles Engagement with Stakeholder IFC Performance Standards Our People Sustainability Policy UN & MCA
Slide 16: Indicative Production Timeline
21/10/2020 Indicative Production Timeline For personal use only Targeting Front-End Engineering & Design (FEED) to be fully funded prior to commencement Timeline subject to change due to impact by COVID-19 on funding and offtake activities Execution Early Contractor Enabling Works Construction Produ
Slide 17: Project Funding Strategy
21/10/2020 Project Funding For personal use only Strategy (ASX:ARU) 17
Slide 18: Arafura's Funding Strategy
21/10/2020 Arafura’s Funding Total Funding Strategy For personal use only Requirement $1,026m To create momentum across: Funding Timeline to meet current market Construction and project opportunity delivery strategy Mix of funding Offtake sources sought Seeking Australian Funding Government led- ECA
Slide 19: Targeted Funding Structure
21/10/2020 Targeted Funding Offtakers Structure For personal use only Offtake, debt and strategic EPC equity all interlinked and driving schedule ECA untied and tied loan ECA Loan Guarantee guarantees will be critical but Nolans Project not the entire funding solution. NAIF EFA and NAIF support to C
Slide 20: The Offtake Strategy
21/10/2020 The Offtake Sales Distribution Targets Strategy Proportion of For personal use only Customer / Target Region Amount (tpa) Offtake Status Revenue NdPr Oxide – targeting contract with NdFeB magnet companies &/or end users Customer engagement targeted at NdPr users not aligned with Made in C
Slide 21: The ECA-led Funding Strategy
21/10/2020 The ECA-led Nolans is a strategic Australia based Funding NdPr project For personal use only production aligned with forecast supply Strategy shortages in mid 2020s Product wholly aligned with key ECA mandates of e-mobility and renewables Debt led funding structure, targeting ECA funding
Slide 22: Current Focus
21/10/2020 Current Focus For personal use only Prioritising project Provision of sample Escalate engagement Continued dialogue work streams against product & advancing with financiers & with Australian & other cash conservation terms sheets with end financial advisors for governments seeking priorit
Slide 23: Any Questions?
21/10/2020 Any For personal use only Questions? Contact Information Level 6, 432 Murray St, Perth WA 6000 Australia +61 8 6370 2800 arafura@arultd.com www.arultd.com (ASX:ARU) 23
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