Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Investor Presentation (March 2010)
26 slides from Arafura Rare Earths's investor presentation, Mar 10, 2010
Slide 1: PPR Media Event Presentation
For personal use only PPR Media Event Presentation Perth, Western Australia 10 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 Our Vision is to be the pre pre‐eminent eminent supplier of rare earths to the world and we will do this by: y develop
Slide 4: Corporate Structure
Corporate Structure (ASX: ARU) For personal use only As at 8 March 2010 Capital 287.4m shares; 15.5m Board/Employee options Market capitalisation (ASX:ARU closing price @ 8 March 2010) @ A$0 A$0.60 60 = ~A$175 million illi Cash (@ 8 March 2010) A$25.2 million Top shareholders ANZ Nominees1 30.2% ECE
Slide 5: Share price data
Share price data (ASX: ARU) For personal use only ARU SHARE PRICE AND VOLUME $1.40 40000 $1.20 35000 30000 $1.00 25000 000s) $0.80 Volume ('0 AUD 20000 $0.60 15000 $0.40 10000 $0.20 5000 $0.00 1 2 3 6 7 8 11 0 4 5 9 10 1. Rights Issue 5. ECE First tranche 9. New Managing Director Steve Ward appointe
Slide 6: Board & Management summary
Board & Management summary For personal use only Proven skills and experience taking projects from greenfields exploration to production (see backup slides for further detail): • Good blend of experience and skills • Start‐up Directors / seed investors • New Directors with relevant experience added
Slide 7: Business Plan
Business Plan 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 8: Rare earths applications
Rare earths applications For personal use only
Slide 9: Rare earths - global supply restricted
Rare earths - global supply restricted For personal use only • China currently supplies 95% of rare earths • China restricting supply through industry consolidation, closing l i old ld andd environmentally i ll unfriendly f i dl operations, i export quotas and tariffs. • Each RE deposit is geologica
Slide 10: 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 t the to th world ld market k t far f into i t th the ffuture t
Slide 11: Rare earths – prices forecast to rise significantly
Rare earths – prices forecast to rise significantly For personal use only BCC Research forecasts 20‐30% Compound Annual Growth Rate increase in rare earth prices over the next five years
Slide 12: 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 of REO p.a for more than 20 years • With further drilling, Arafura is confident Nolans has geological potential to expand to support increased production beyond 20
Slide 13: Nolans location
Nolans location For personal use only • Central Australian location • No competing land use • Not too remote from infrastructure – 5 km to gas line – 10 km to Stuart Highway – 60 km to rail line – 135 km north of Alice Springs – 1200 km north to Darwin – 1300 km south to Port Pirie
Slide 14: Nolans is a globally significant resource
Nolans is a globally significant resource For personal use only y Exposed at surface y Size extent unknown y Only drilled to 130m below surface y Estimated d initiall mine life l f 20+ years; nevertheless ….. y Further drilling planned to expand resource base and reduce resource risk
Slide 15: Nolans process
Nolans 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 Pl t Plant
Slide 16: Nolans demonstration plant
Nolans demonstration plant For personal use only Utilising the Heavy Media Separation Froth Flotation Utilising the expertise of expertise of ANSTO Bateman Litwin Rare Earth Processing Acid Bake Phosphoric Acid SX Rare Earth Products Uranium Phosphoric Acid & CaCl2
Slide 17: Nolans has a superior rare earth mix
Nolans has a superior rare earth mix For personal use only Rare Earth Applications Nolans Mt Weld Mountain Pass Baiyunebo Oxide Australia Australia USA China Lanthanum Petroleum P l cracking ki 19.74% 25.6% 33.2% 27.1% catalysts; Batteries (NiMH) Cerium Autocatalysts; Glass; 47.53% 45.74% 49.1% 49.8
Slide 18: Nolans rare earth mix: a competitive advantage
Nolans rare earth mix: a competitive advantage For personal use only In Situ REO value (February 2010) $13.11 $13.23 14.00 12 00 12.00 $10.36 $10 36 Cerium Lanthanum 10.00 $8.80 Praseodymium Neodymium 8 00 8.00 Samarium US$/kg Europium 6.00 Gadolinium Dysprosium Terbium 4 00 4.00 Yttrium Other 2.00
Slide 19: Value creation: pit to customer across all products
Value creation: pit to customer across all products For personal use only Rare earths are much more complex than some other commodities. There are many value drivers to consider. L Grade Size Conversion Mineral Resources o REE assemblage & Other valuable commodities Ore Reserves c a t Recovery Minin
Slide 20: Nolans valuation as at November 2009
Nolans valuation as at November 2009 For personal use only
Slide 21: Nolans development timeline – looking forward
Nolans development timeline – looking forward For personal use only
Slide 22: Thank You
For personal use only Thank You
Slide 23: Arafura Board
Arafura Board For personal use only Hon Ian Laurance AM Chairman Ian Laurance is Chairman of the publicly listed property development company, company Axiom Properties Limited (AXI) (AXI). Ian represented the electorate of Gascoyne in the Western Australian Parliament for 14 years and at various tim
Slide 24: Arafura Board
Arafura Board For personal use only Alex Losada-Calderon Non-Executive Director Dr Losada-Calderon Losada Calderon is an independent consultant to East China Mineral Exploration & Development Bureau. Bureau Formally he was Vice- Vice President of Exploration for Southwestern Resources Corp located i
Slide 25: Arafura Management
Arafura Management For personal use only Dr. Steve Ward Gavin Lockyer Steven Mackowski Richard Brescianini Brian Fowler Managing Director & CEO Company Sec & CFO GM - Project Development GM - Exploration GM - Sustainability Age 54 Age 42 Age 57 Age 47 Age 57 Holds PhD in Physical Has over 15 years H
Slide 26: Corporate Information
Corporate Information For personal use only 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 pp WA 6153 Telephone +61 8 9315 2333 Facsimi
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