Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — Lynas — Investor Presentation (September 2013)
17 slides from Lynas Rare Earths's investor presentation, Sep 12, 2013
Slide 1: Rare Earths: Famine or Feast?
Lynas Corporation Rare Earths – we touch them everyday For personal use only Rare Earths: Famine or Feast? 12 September 2013
Slide 2: Disclaimer
Disclaimer For personal use only This Presentation has been prepared by Lynas Corporation Limited (ABN 27 009 066 648) (Lynas or the Company). This Presentation contains summary information about Lynas and its subsidiaries (Lynas Group) and their activities current as at the date of this Presentatio
Slide 3: Rare Earths market data - Disclaimer
Rare Earths market data - Disclaimer For personal use only The slides in this presentation containing Rare Earths market data have been sourced from independent analysis of end application demand, along with Lynas estimates of quantities of Rare Earths end use in various key applications. Althou
Slide 4: Agenda
Agenda For personal use only Rare Earth Market Update Lynas Overview 4
Slide 5: RE market outlook – key questions
RE market outlook – key questions For personal use only Rare Earths: Famine or Feast? What conditions led to the rare earth (“RE”) price crisis and did any positives eventuate from it? What is the current state of the RE market and when will it move again? What will be the key drivers of growth of t
Slide 6: Recap on the RE price crisis
Recap on the RE price crisis For personal use only 1 Speculative traders 250 enter the market and China Domestic RE Prices stockpile REs to take China FOB RE Prices advantage of price rises 2 Consumers forced to 200 build up inventories 1 Unsustainable RE price Lynas Basket Price (US$/kg REO) (above
Slide 7: Where is the RE market today?
Where is the RE market today? For personal use only Since the peak of the RE crisis in However, In recent months, prices for a number mid 2011 when prices became there are of RE products have moved again as a unsustainable for RE consumers, emerging result of: RE prices have decreased to levels sign
Slide 8: RE market outlook – key supply side trends
RE market outlook – key supply side trends For personal use only Moving towards supply discipline inside China – aiming at sustainable production Chinese RE producers along China currently produces ~90% of the world’s RE supply with outside China RE and consumes greater than 50% of this in its own
Slide 9: RE market outlook – key demand side trends
RE market outlook – key demand side trends For personal use only A number of key trends will drive the future growth of the global RE market 1 Energy efficient and green applications continue to accelerate strong NdPr demand growth Wind energy, HEV/EVs, general auto, energy efficient drives for ho
Slide 10: RE market outlook – forecast elemental balance in 2020
RE market outlook – forecast elemental balance in 2020 For personal use only Elemental market balances and demand growth rates La Ce NdPr Sm Eu Gd Tb Dy Y 12% 2012-2020F REO Demand Growth (CAGR) 10% Dy 1.5ktpa Gd 8% 1.2ktpa Sm 0.6ktpa 6% 4% NdPr 54.3ktpa La 2% 38.0ktpa Ce 36.1ktpa 0% -2% Y Tb 5.4ktp
Slide 11: RE market outlook – summary
RE market outlook – summary For personal use only Based upon forecast demand in key end markets, the global RE market could grow at 5-6% per annum to 2020 with demand for some elements growing at higher rates However, the RE market will not grow to its full potential unless there is long term pric
Slide 12: Agenda
Agenda For personal use only Rare Earth Market Update Lynas Overview 12
Slide 13: Lynas company overview
Lynas company overview For personal use only Building a fully integrated source of REs from mine to customers Primarily involved in the exploration, development, mining and processing of RE minerals ASX-listed, market capitalisation of A$750m as of August 28, 2013 Owns and operates: Mt. Weld
Slide 14: Lynas operational update
Lynas operational update For personal use only June 2013 quarter First sales made in Q2 2013 Future milestones Optimise production at the Phase 1 capacity level of 11,000tpa REO until market prices recover Commissioning of Phase 2 almost completed Subsequent ramp-up of Phase 2 production wil
Slide 15: LAMP Phase ramping up operations
LAMP Phase 1 ramping up operations LAMP Phase 2 commissioning expected Q3 2013 For personal use only ANTICIPATED PHASE 1 ─ 11,000t REO CAPACITY Major Applications VOLUMES (tpa) Ce 2,600 Autocat, Chemical Catalysis La 1,350 FCC, NiMH batteries Ce / La 4,000 Polishing, NiMH batteries Nd / Pr 2,700 Mag
Slide 16: What does Lynas offer the market?
What does Lynas offer the market? For personal use only An additional environmentally sustainable source of RE supply The ability for end users to enter into long term supply contracts Specific partnerships with customers in order to secure the supply chain to end users Already defined reserves of 1
Slide 17: NOTE
NOTE For personal use only The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Brendan Shand, who is a member of The Australasian Institute of Mining and Metallurgy. Brendan Shand is an employee of Lynas and