Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — Argus US Specialty Metals Conference 2019
25 slides from Lynas Rare Earths's conference presentation, Jun 7, 2019
Slide 1: Lynas: Growing the Market Outside China
For personal use only LYNAS: GROWING THE MARKET OUTSIDE CHINA Argus US Specialty Metals conference 7 June, 2019 1
Slide 2: Disclaimer
For personal use only Disclaimer 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: Our long journey to deliver value
Our long journey to deliver value LYNAS ENTERPRISE VALUE For personal use only • 2011: The investment world discovers Rare Earths 4000 3500 • 2012: Lynas construction slower than forecast 3000 2500 • AUD millions 2013-2016: High debt, low cash • US $425m debt 2000 • A $4.1m operating cash flow Debt
Slide 4: Our product offering today
For personal use only Our product offering today Product Capacity REO Market tonnes/annum NdPr+Nd+Pr Oxide & Metal 7,200 NdPr 5,400 Magnets Nd 1,500 Magnets, Catalysts Pr 300 Catalysts, Pigments, Magnets SEG Oxide 1200 HRE Separation Ce-La Carbonate, Oxide, Metal, Compounds 16,000 Ce Carbonate, Oxid
Slide 5: Our track record underpins our confidence in the future
Our track record underpins our confidence in the future For personal use only 12,000 Production Volume REOt 220 Sales Revenue (A$'m) 10,000 170 8,000 6,000 120 4,000 70 2,000 0 20 H1 15 H2 15 H1 16 H2 16 H1 17 H2 17 H1 18 H2 18 H1 19 H1 15 H2 15 H1 16 H2 16 H1 17 H2 17 H1 18 H2 18 H1 19 NdPr (RTS) O
Slide 6: Malaysia regulatory update
Malaysia regulatory update Operating License renewal For personal use only • Full Operating Stage License (FOSL) due for renewal on 2 September 2019 • On 30 May 2019, the Malaysian • License renewal application progressing to a Prime Minister acknowledged the “normal” timetable importance of the con
Slide 7: Lynas 2025: Growing with the market
For personal use only Lynas 2025: Growing with the market A larger business to meet • Efficient capacity expansion leveraging Lynas’ unique assets forecast demand growth • 10,500 tpa NdPr products Diversified Industrial footprint • Upstream processing close to the resource with processing facilities
Slide 8: Our track record underpins our confidence in the future
Our track record underpins our confidence in the future Malaysia For personal use only A dynamic operation in Gebeng with increased investment in downstream processing Vietnam-Thailand Vietnam-Thailand Metal tollers. Metal Tollers United States Western Australia Exciting market opportunity with An e
Slide 9: Developing our sources of unique competitive advantage
Developing our sources of unique competitive advantage For personal use only Mt Weld Market position Inhouse Proven Operations Will to win • A true Tier 1 • World’s second Intellectual • Established • Corporate culture Resource largest Rare Earths Property operating assets founded on our • Continuin
Slide 10: Our unique Tier 1 Rare Earth deposit
For personal use only Our unique Tier 1 Rare Earth deposit 10
Slide 11: Mt Weld is favoured by grade, NdPr content, total REO and life of mine
For personal use only Mt Weld is favoured by grade, NdPr content, total REO and life of mine 11 11
Slide 12: Sustaining a 25+ Year Reserve in 2025
Sustaining a 25+ Year Reserve in 2025 Coarse grain primary RE mineralisation will be much simpler to process For personal use only • Step change improvement in grade and recovery performance for current and future ores • Proven improved flowsheet Parisite +2mm for new ores • Exploration and new flow
Slide 13: Our competitiveness continues to improve
Our competitiveness continues to improve • From 2014 to 2016, Lynas For personal use only operations stabilised Lynas NdPr Production cost Index: 100=Average 2016 • Mid-2016, both plants were running 250% at design capacity • Through Lynas NEXT, production 200% capacity has increased to 7.2 ktpa of
Slide 14: Improving Capital Efficiency
Improving Capital Efficiency For personal use only ▪ Phase 1: 29 Flotation Cells ▪ Phase 2: 9 Flotation Cells ▪ Lynas NEXT: 1 Flotation Cell ▪ Lynas 2025: 3-5 Flotation Cells 43 14
Slide 15: Lynas NEXT - Cracking and Leaching
For personal use only Lynas NEXT - Cracking and Leaching MgO Circuit Split, new heat exchangers added, new pumping designs, new hopper designs, changed filter configurations Redesigned WGT ducting Emissions improvements 15
Slide 16: Demand for NdPr is forecast to accelerate from 2021
Demand for NdPr is forecast to accelerate from 2021 For personal use only Global demand for fresh NdPr Oxide 70.0 • Energy International Agency: 125-220m electric cars on the road in 2030 60.0 Equivalent to 88-155ktns additional REO kt of NdPr Oxide 50.0 supply of NdPr over next 10 years 40.0 • Mo
Slide 17: Lynas is the partner of choice for securing a sustainable magnet supply chain
Lynas is the partner of choice for securing a sustainable magnet supply chain For personal use only • Lynas offers: - Unique market expertise inside and outside China - Independence from China - Transparent downstream supply chain - Can provide metal, alloy and recycling services through trusted par
Slide 18: Our sales and marketing road map to 2025
Our sales and marketing road map to 2025 For personal use only Develop additional value for other products Maintain 20-25% Extract Dy and Tb - La all pre-sold via Prepare for NdPr market share from our Heavy long term contracts through timely outside China Rare Earths and magnet recycling capacity i
Slide 19: Our investment in Specialty Products
Our investment in Specialty Products EBITDA from Ce-La products expected to be 3x higher in 2025 compared to 2018 For personal use only Synthesis Lab Analytical Lab Application Performation Lab Pilot Plant 19
Slide 20: Lynas has a key role to play in Heavy Rare Earths
Lynas has a key role to • Currently all Heavy Rare Earths (HRE) play in Heavy Rare Earths separation is in China • Dy and Tb are essential to high power electrical For personal use only Xinfeng ore value 250 60% motors 200 50% % paid by Lighting 150 40% • HRE in China is extracted from ionic clay, t
Slide 21: Lynas-Japan alliance plays an essential role in RE market growth
Lynas-Japan alliance plays an essential role in RE market growth For personal use only Mining Separation Metal Alloy Magnet Component OEM • Security of supply from Lynas has contributed to growth in Japanese industry • Lynas provides outside China automotive manufacturers with confidence in Rare Ear
Slide 22: Lynas – Blue Line partnership
Lynas – Blue Line partnership Replicating in USA what we did in Japan For personal use only • MOU between Lynas and Blue Line Corporation for the joint development of Rare Earths separation in USA • Binding, conditional on funding approvals by both parties • Exclusive for 12 months • Primarily focus
Slide 23: Blue Line's ready-made facilities in Hondo, Texas
For personal use only Blue Line’s ready-made facilities in Hondo, Texas Shuttle Kiln 3 Tunnel Kilns Process Equipment ISO Certification Powder Silos Programmable logic controllers Electricity & natural gas supply 23
Slide 24: For personal use only
Highly visible Demonstrated capability to grow =. cil Japan: +50% since 2013 Bringing Rare Earths supply to the United States Fully transparent Ranked Silver medallist by EU chemical companies UN Global Compact signatory sD: Dy, Tb separation High value added Ce based products End of life magnet rec
Slide 25: Competent Person's Statement
For personal use only Competent Person’s Statement COMPETENT PERSON’S STATEMENTS– MINERAL RESOURCES 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
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