Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — Shareholder Meeting (November 2010)
29 slides from Lynas Rare Earths's shareholder meeting presentation, Nov 24, 2010
Slide 1: The Lynas Story - 2010 Annual General Meeting
The Lynas Story For personal use only 2010 ANNUAL GENERAL MEETING Sydney Marriott 24 November 2010
Slide 2: Disclaimer
Disclaimer For personal use only • The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe
Slide 3: Magnets and battery alloy are forecast to be the growth drivers for Rare Earths demand to 2014
Magnets and battery alloy are forecast to be the growth drivers for Rare Earths demand to 2014 For personal use only GROWTH FORECAST BY APPLICATION 2014 DEMAND FORECAST BY APPLICATION Application Growth rate p.a. (%) Demand (t) Other 5% Other, Phosphors, • Magnets 12% 55,100 10% • Battery Alloy 15%
Slide 4: Our assumptions show global supply at 170kt by 2014 compared to demand of 190kt
Our assumptions show global supply at 170kt by 2014 compared 2014, d tto d demand d off 190kt For personal use only 2014 FORECAST SUPPLY ASSUMPTIONS SUPPLY SOURCES KEY UNDERLYING ASSUMPTIONS • B t Baotou 60 000t 60,000t • Sichuan 20,000t • Baotou – 10% production increase 2010 / 2014 • Ionic Clay Re
Slide 5: Prices are returning to historic levels
Prices are returning to historic levels For personal use only HISTORIC SUPPLY, SUPPLY DEMAND AND PRICING Tonnes REO US$/Kg US$67.05/kg 22 Nov 2010 US Inflation adjusted Actual Price 5
Slide 6: The shortage of Rare Earths has the world currently thirsting for these vital elements
The shortage of Rare Earths has the world currently thirsting for these vital elements For personal use only PRICE DRIVERS 2010 Tonnes REO US$/Kg • Consolidation of production and marketing channels • Chinese policies restricted supply • Demand recovering strongly • Prices starting to grow inside Ch
Slide 7: Lynas will offer the first new source of supply of Rare Earths outside of China - Q3 2011
Lynas will offer the first new source of supply of R Rare E Earths th outside t id off Chi China - Q3 2011 For personal use only LYNAS VITALS AT A GLANCE VISION: To be a g global leader in Rare Earths for a sustainable future Mount Weld EXCHANGE: ASX Top 200 Company; code LYC SHARES: 1,657m on issue
Slide 8: Lynas is on track for production in Q3 2011
Lynas is on track for production in Q3 2011 For personal use only KEY MILESTONES TO ENSURE A RELIABLE SOURCE OF RARE EARTHS • Lynas raised A$450 million in the equity markets to fund the completion of its project • All approvals in Australia and Malaysia in place to complete construction of processi
Slide 9: As at September 2010, 15% more resources in Mount Weld; New Total Resource of 1.4 million tonnes of REO
As at September 2010, 15% more resources in The current mining operation is within the Mount Weld; New Total Resource of 1 1.4 4 million C t lZ Central Zone Pit For personal use only tonnes of REO CENTRAL LANTHANIDE DEPOSIT AND DUNCAN DEPOSIT RESOURCES Central Lanthanide Deposit & CLD & Duncan Miner
Slide 10: Mount Weld Rare Earths initial mining campaign complete, lost-time-injury-free
Mount Weld Rare Earths initial mining campaign complete, l t lloss-time-injury-free ti i j f For personal use only MOUNT WELD STOCKPILES WITH RARE EARTH OXIDE PERCENTAGES DUNCAN DEPOSIT (DD) Offices 773,000t on stockpiles 8% 13% DD CLD 17% DEPOSIT 26% 15% 13% 21% 20% Conc. Conc DD Plant 1.5km 10
Slide 11: Schematic - Concentration Plant process at Mount Weld, which has been fully pilot plant tested
Schematic - Concentration Plant process at Mount W ld which Weld, hi h hhas b been ffully ll pilot il t plant l t ttested t d For personal use only 11
Slide 12: Status of the Concentration Plant in November 2009
Status of the Concentration Plant in November 2009… 2009 For personal use only Floatation building foundations -12-
Slide 13: 2010 - commissioning of the Concentration Plant is on schedule for February 2011
2010 - commissioning of the Concentration Plant i on schedule is h d l ffor F February b 2011 For personal use only CONSTRUCTION AT THE CONCENTRATION PLANT Flotation section under construction 13
Slide 14: 2010 - commissioning of the Concentration Plant is on schedule for February 2011
2010 - commissioning of the Concentration Plant i on schedule is h d l ffor F February b 2011 For personal use only CONSTRUCTION AT THE CONCENTRATION PLANT Flotation building Concentration thickener and packing area 14
Slide 15: 2010 - commissioning of the Concentration Plant is on schedule for February 2011
2010 - commissioning of the Concentration Plant i on schedule is h d l ffor F February b 2011 For personal use only CONSTRUCTION AT THE CONCENTRATION PLANT Ball mill being installed 15
Slide 16: Containers of Rare Earths concentrate will be trucked to Fremantle for shipping to Malaysia
Containers of Rare Earths concentrate will be t k d tto Fremantle trucked F tl for f shipping hi i tto Malaysia M l i For personal use only • Mount Weld to Fremantle = 1000km • Transportation approx. 9% of total costs 16
Slide 17: Lynas will expand the Malaysian processing hub, with the ability to take multiple sources of material
Lynas will expand the Malaysian processing hub, with ith th the ability bilit tto ttake k multiple lti l sources off material t i l For personal use only PROCESSING HUB WITH EXCEPTIONAL INFRASTRUCTURE Gebeng Industrial Estate, INDUSTRIAL INFRASTRUCTURE East Coast Malaysia KNOWLEDGE INFRASTRUCTURE GO
Slide 18: Schematic - Lynas Advanced Materials Plant (LAMP) core process, which uses mature industry technology
Schematic - Lynas Advanced Materials Plant (LAMP) core process, which uses mature industry For personal use only technology 18
Slide 19: Lynas Advanced Materials Plant (LAMP)
Lynas Advanced Materials Plant (LAMP) For personal use only Phase 1 : 11,000t , REO Phase 2 : 22,000t REO -19-
Slide 20: First feed to kiln at the Lynas Advanced Materials Plant is scheduled for Q3 2011
First feed to kiln at the Lynas Advanced Materials Pl t iis scheduled Plant h d l d ffor Q3 2011 For personal use only FEATURES OF CONSTRUCTION AT THE LAMP Prefabricated Bluescope steel buildings Working on the foundations at the LAMP 20
Slide 21: First feed to kiln at the Lynas Advanced Materials Plant is scheduled for Q3 2011
First feed to kiln at the Lynas Advanced Materials Pl t iis scheduled Plant h d l d ffor Q3 2011 For personal use only FEATURES OF CONSTRUCTION AT THE LAMP Lynas-constructed stormwater detention pond Concrete Batch Plants 21
Slide 22: Status of Lynas Advanced Materials Plant (LAMP) in November 2009
Status of Lynas Advanced Materials Plant (LAMP) in November 2009... For personal use only -22-
Slide 23: 2010 - first feed to kiln at the LAMP is scheduled for Q3 2011
2010 - first feed to kiln at the Lynas Advanced M t i l Pl Materials Plantt (LAMP) iis scheduled h d l d ffor Q3 2011 For personal use only CONSTRUCTION AT THE LAMP Foundation works and steel reinforcement in place ready for further concrete pours 23
Slide 24: 2010 - first feed to kiln at the LAMP is scheduled for Q3 2011
2010 - first feed to kiln at the Lynas Advanced M t i l Pl Materials Plantt (LAMP) iis scheduled h d l d ffor Q3 2011 For personal use only CONSTRUCTION AT THE LAMP Rotary kilns foundations Rotary kilns bodies 24
Slide 25: Time and expertise are vital for the effective execution of a Rare Earths project
Time and expertise are vital for the effective execution ti off a Rare R Earths E th project j t For personal use only MAN HOURS TO COMPLETE OUR LYNAS ADVANCED MATERIALS PLANT 4,000,000 1,000,000 900,000 800,000 , 700,000 600,000 500,000 300,000 280,000 400 000 400,000 300,000 200,000 40,000 100,000
Slide 26: We are industrialising our operations to meet our customers' expectations
We are industrialising our operations to meet our customers’ t ’ expectations t ti For personal use only FOUR PILLARS UNDERPINNING LYNAS’ OPERATIONS Marketing and Sales • Serving long-term long term customer requirements and commitments commitments, and thus providing input for plant extensions and
Slide 27: Eight customer agreements have been signed
Eight customer agreements have been signed For personal use only Rhodia Customer Agreement - Supply Contract • >US$200M¹ 8th Customer Agreement – Supply Contract • Long term 10 year contract, Phase I • Long term contract • Cerium, Europium, Terbium & Lanthanum • Product from Phase I & II 2nd Custome
Slide 28: Lynas - online in 2011, delivering Rare Earths globally
Lynas – online in 2011, delivering R Rare E Earths th globally l b ll For personal use only Our vision is to be a global leader in Rare Earths for a sustainable future. We are close to realising this vision. Lynas will be online in 2011, delivering Rare Earths globally. This is the first new product
Slide 29: Note - Competent Person statement
NOTE For personal use only The information in this report p that relates to Exploration p 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 Corpo
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