Slide 1: FY18 Results Analyst & Investor Presentation
For personal use only LYNAS CORPORATION FY18 RESULTS ANALYST & INVESTOR PRESENTATION 1
Slide 2: Disclaimer
Disclaimer For personal use only This Presentation has been prepared by Lynas Corporation Limited (ABN 27 009 066 648) (Lynas or financial position and performance are also forward-looking statements. Forward-looking statements, the Company) This Presentation contains summary information about Lynas
Slide 3: FY18 Results: Highlights
FY18 Results: Highlights For personal use only ▪ Maiden NPAT of $53.1m as Rare Earths company (FY17: restated loss of $0.5m) ▪ EBIT increased to $81.0m (FY17: loss of $14.5m) Record Profit ▪ EBITDA increased to $121.9m (FY17: $29.4m) ▪ Revenue grew to $374.1m (FY17: $257.0m) NPAT $53.1m ▪ Gross prof
Slide 4: FY18 Result: Improved performance on all key metrics
FY18 Result: Improved performance on all key metrics Production Volume Sales Volume (tonnes) For personal use only 20,000 17,753 20,000 Others Sales 17,672 18,000 16,003 18,000 16,000 NdPr Sales 14,615 16,000 12,631 14,000 12,513 14,000 12,000 12,000 REOt 8,799 REOt 10,000 10,000 7,883 8,000 8,000 6
Slide 5: A proven and profitable producer
A proven and profitable producer For personal use only ▪ Lynas is a proven and profitable producer of specialty Rare Key Metrics Earth materials positioned to benefit from accelerating demand ASX Ticker LYC for Rare Earths from key markets in Asia, Europe and the US ISIN AU000000LYC6 Shares Outstand
Slide 6: Lynas is evolving to a strong specialty materials business
Lynas is evolving to a strong specialty materials business For personal use only 928 metres of kilns and Lynas adds value to its tunnel rich Mt Weld resource furnaces 4 rotary kilns (60m long) 8 tunnel furnaces (88m long) 46 Plate & Frame Pressure Filters 44 High Speed Centrifuges 1,000 Solvent Extr
Slide 7: Sustainability: Lynas leading the market
Sustainability: Lynas leading the market For personal use only Environmental best Resource optimisation Delivering to customer Ongoing community practice & water management needs engagement Our first priority is safety. We continue to optimise We meet the sustainability We contribute to our local We
Slide 8: Lynas has operated safely and within licence conditions for over 5 years
Lynas has operated safely and within licence conditions for over 5 years The safety of our people, our communities and the environment will always be our first priority. We For personal use only demonstrate this by operating a world-class chemical processing plant that is certified to ISO Health, Sa
Slide 9: Our Sustainability plan
Our Sustainability plan Sustainable balance Full Mine-to-Magnet For personal use only sheet and profitable Supply Traceability Financial operations Chain Lynas Lifecycle Assessment of resources consumed 360⁰ Minimise Air, Noise, Water Recycling project Resources Environment Sustainability Emissions
Slide 10: Lynas uses Life Cycle Assessment to inform our approach to Sustainability
Lynas uses Life Cycle Assessment to inform our approach to Sustainability ▪ We are engaged with several end users and magnet makers in Life For personal use only Cycle Assessment (LCA) from mine to magnet, evaluating the impact on LCA assesses environmental the environment of the full supply chain a
Slide 11: Regulatory update: Malaysia
Regulatory update: Malaysia ▪ A new Malaysian government was elected on 9 May 2018. Recent media reports have indicated that the Lynas business may be one of many areas of the Malaysian economy to be reviewed by the new government. For personal use only ▪ We hold ourselves to a high standard and wil
Slide 12: Preparing for the future
For personal use only Preparing for the future 12
Slide 13: Lynas NEXT: Investing in our future, growing with the market
Lynas NEXT: Investing in our future, growing with the market For personal use only Increase productivity Deliver better returns Strengthen the Continue to drive Contribute to total of our existing on total Rare Earths business with new total cost down market growth assets processed customer offers F
Slide 14: Mt Weld: Tier 1 Rare Earth Deposit
Mt Weld: Tier 1 Rare Earth Deposit Favoured by ▪ Simple open pit mine with over 25+ years life of mine and located in Mt For personal use only ▪ Grade Weld, Wester Australia, 1000km from Fremantle Port ▪ NdPr Content ▪ Currently mining, by campaign, the Central Lanthanide Deposit (CLD) ▪ Total REO ▪
Slide 15: Mt Weld: Substantial increase in 2018 Mineral Resources and Ore Reserves
Mt Weld: Substantial increase in 2018 Mineral Resources and Ore Reserves For personal use only Mt. Weld Mineral Resources (2.5% REO cut off) Mineral Resources: Mineral Resources Ore (Mt) REO (%)1 Cont. REO (kt) ▪ 70% increase in contained REO Transition and Fresh mineralisation included in inferred
Slide 16: Growing with the market
For personal use only Growing with the market 16
Slide 17: The demand for Rare Earths is forecast to grow
The demand for Rare Earths is forecast to grow ▪ Demand is strong and customers are looking to ensure For personal use only There is demand for a reliable Rare Earths sustainable NdPr supply source outside China which Lynas fills ▪ Rare Earths are essential for many future facing technologies e.g. e
Slide 18: Outlook
Outlook Lynas today Growth opportunities For personal use only ▪ Proven and profitable producer serving high growth ▪ Secure additional long-term supply contracts with markets with significant 1st mover advantages end users and customers throughout the supply ▪ Only integrated miner and processor ou
Slide 19: Competent Person's Statement
Competent Person’s Statement COMPETENT PERSON’S STATEMENTS– MINERAL RESOURCES For personal use only The information in this report that relates to the 2018 Mineral Resources is based on information compiled by Mr Alex Whishaw under the guidance of Dr Andrew Scogings. Mr Wishaw and Dr Scogings are fu