Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Asia Mining Conference 2010
19 slides from Arafura Rare Earths's conference presentation, Mar 22, 2010
Slide 1: Asia Mining Conference
For personal use only Asia Mining Conference Presented by: Gavin Lockyer CFO/Company Secretary Singapore 21st March 2010
Slide 2: Disclaimer
Disclaimer For personal use only Important Notice This presentation contains certain statements which may constitute “forward‐looking statements.” Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance achievemen
Slide 3: Arafura Resources Limited
Arafura Resources Limited For personal use only Arafura is an Australian‐based mineral exploration and development company which listed on the Australian Securities Exchange in 2003. (ASX:ARU) Our Vision is to be the pre‐eminent supplier of rare earths to the world and we will do this by: y developi
Slide 4: Corporate Structure
Corporate Structure (ASX: ARU) For personal use only As at 19 March 2010 Capital 287.4m shares; 15.5m Board/Employee options Market capitalisation (ASX:ARU closing price @ 19 March 2010) @ A$0.61 = ~A$175 million Cash (@ 19 March 2010) A$25.2 million Top shareholders ANZ Nominees1 30.2% ECE2 22.4% C
Slide 5: Business Plan – existing landholdings
Business Plan – existing landholdings For personal use only To create shareholder value by: • focusing on the Nolans Rare Earths‐ Phosphate‐Uranium Project. • Identifying other rare earth projects • JV or explore current projects in gold, base metals and iron‐vanadium (ongoing JV discussions)
Slide 6: Rare earths – Demand driven by governments, lifestyle and energy efficient technology
Rare earths – Demand driven by governments, For personal use only lifestyle and energy efficient technology
Slide 7: Rare earths - global supply restricted
Rare earths - global supply restricted • China currently supplies 95% of rare earths For personal use only • China restricting supply through industry consolidation, quotas and tariffs. • Each RE deposit is geologically unique and requires its own metallurgy to be developed. (ie: long lead time to p
Slide 8: Rare earths: demand growth, constrained supply
Rare earths: demand growth, constrained supply For personal use only The Nolans resource is well positioned to become a substantial supply source to the world market far into the future
Slide 9: Arafura's rare earths business structure
Arafura’s rare earths business structure For personal use only • Nolans’ current resource is sufficient to sustain production of 20,000/t p.a of REO for more than 20 years. • With further drill programmes, Arafura is confident Nolans has geological potential to expand to support increased production
Slide 10: Nolans Location – Central Australia
Nolans Location – Central Australia For personal use only •Politically stable •Resources based economy •Strong, unambiguous regulatory controls – environment and radiation •Remote but not isolated from modern infrastructure – 5 km to gas line – 10 km to sealed Stuart Highway – 60 km to Adelaide to D
Slide 11: Nolans is a globally significant JORC resource
Nolans is a globally significant JORC resource For personal use only y Exposed at surface y Size extent unknown y Only drilled to 130m below surface y Estimated initial mine life 20+ years; nevertheless ….. y Further drilling planned to expand resource base and reduce resource risk
Slide 12: Our Process
Our Process For personal use only Processing technology makes a successful rare earths company Arafura intellectual property developed to specifically exploit the Nolans deposit. Proven process from mine site to product through Demonstration Plant
Slide 13: Demonstration plant a success
Demonstration plant a success. For personal use only Utilising the Utilising the expertise of expertise of Heavy Media Separation Froth Flotation Bateman ANSTO Litwin Rare Earth Processing Acid Bake Phosphoric Acid SX Rare Earth Carbonate Uranium Phosphoric Acid & CaCl2
Slide 14: Nolans has a superior rare earth mix
For personal use only Nolans has a superior rare earth mix Rare Earth Applications Nolans Mt Weld Mountain Pass Baiyunebo Oxide Australia Australia USA China Lanthanum Petroleum cracking 19.74% 25.6% 33.2% 27.1% catalysts; Batteries (NiMH) Cerium Autocatalysts; Glass; 47.53% 45.74% 49.1% 49.86% Poli
Slide 15: In Situ REO mix: a competitive advantage & more
In Situ REO mix: a competitive advantage & more In Situ REO value For personal use only (February 2010) $13.11 $13.23 14.00 $10.36 Cerium 12.00 Lanthanum $8.80 Praseodymium 10.00 Neodymium 8.00 Samarium US$/kg Europium 6.00 Gadolinium Dysprosium 4.00 Terbium Yttrium 2.00 Other 0.00 Mountain Pass Bai
Slide 16: Project Valuation November 2009
For personal use only Project Valuation November 2009 November 2009 Project Valuation (estimated costs) US$ million Capital Costs $420 Sales Revenue Rare Earths separated products @ $10,000/t $200 Phosphoric Acid @ $750/t $60 Calcium Chloride @ $100/t $40 Uranium @ $50/lb $15 Total Revenue p.a $315
Slide 17: Moving forward – the next steps
Moving forward – the next steps For personal use only 2010 ‐ 2013 • Extensive drilling program to increase resource base and reduce resource risk. • Site Selection, EIS, Mine Studies, Regulatory approvals • Refine the debt/equity structure. • Actively seek appropriate strategic partners and financie
Slide 18: Corporate Information
For personal use only Corporate Information Registered Office Arafura Resources Ltd Level 5, 16 St Georges Terrace Perth WA 6000 Telephone +61 8 6210 7666 Facsimile +61 8 9221 7966 Share Registry Security Transfer Registrars 770 Canning Highway Applecross WA 6153 Telephone +61 8 9315 2333 Facsimile
Slide 19: Thank You
For personal use only Thank You