Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Asian Rare Earths Conference 2024
19 slides from Arafura Rare Earths's conference presentation, Apr 22, 2024
Slide 1: Asian Rare Earths Conference Presentation ASX Announcement
ASX ANNOUNCEMENT ASIAN RARE EARTHS CONFERENCE PRESENTATION 22 April 2024 Arafura Rare Earths Limited (ASX: ARU) (“Arafura” or the “Company”) is pleased to attach a copy of a presentation delivered by Managing Director and CEO, Darryl Cuzzubbo, at the Asian Rare Earths Conference in Singapore. -ENDS-
Slide 2: Building a diversified value chain and enabling the energy transition
ASX: ARU For personal use only Arafura Rare Earths Building a diversified value chain and enabling the energy transition Darryl Cuzzubbo Managing Director & CEO Monday 22 April 2024
Slide 3: Disclaimer
Disclaimer This presentation is dated 22 April 2024 and has this presentation and, subject only to any legal to Mineral Resources is extracted from the announcement dated 11 November 2022 Company’s ASX announcement dated 7 June For personal use only been prepared by Arafura Rare Earths Limited oblig
Slide 4: Agenda
Agenda For personal use only 1 Corporate summary 7 Securing binding offtakes 2 Construction ready 8 Equity engagement 3 Market outlook: structural deficit about to bite 9 Project funding: indicative debt structure & status 4 Market drivers: NdPr pricing elastic 10 A new era: Board and Management ref
Slide 5: Corporate summary
Corporate summary Why the Nolans Project? Explorer Developer Project Execution For personal use only ✓ fully-permitted1 ✓ single-site ore-to- ✓ scalable oxide project ✓ construction-ready3 ✓ tier 1 location NdPr is essential for the Demand expected to nearly energy transition double by 2032 2 – deve
Slide 6: Construction ready
Construction ready Once financed, we are ready to go For personal use only Environmental permits and Granted mineral lease / Access to existing approvals in place1 license infrastructure >$40m on site works de- Experienced Board and Construction to commence risking project schedule leadership team s
Slide 7: Market outlook: structural deficit about to bite
Market outlook: structural deficit about to bite For personal use only Forecast supply gap represents ~88% of global supply today • The equivalent of > 12 Nolans projects required to close gap • Average ~18 years required to develop mines from discovery to first commercial production1 • Development
Slide 8: Market drivers: NdPr pricing elastic
Market drivers: NdPr pricing elastic Remember the semi-conductor chip crisis?1 For personal use only • Acute competition to secure chips Big names with big promises are dependent on NdPr • Created significant risk to automotive global supply chain Selected OEM 2030 Sales Targets3 based on 2023 avera
Slide 9: Supply chain risk
Supply chain risk Remember the chips? 1 For personal use only Supply security creates significant risk Japan has ex-China strategy Japan has secured significant proportion of ex-China NdPr for stable feedstock 2 ~90% ROW dependant on China Global NdPr is REuropean EV and wind Today the US, Korea and
Slide 10: Virtue of Nolans: large, scalable, low-cost resource
Virtue of Nolans: large, scalable, low-cost resource Nolans: a differentiated proposition Benchmarking vs Lynas and MP Materials3 For personal use only 6,000 Large, high-grade Low unit cost – resource phosphoric acid 5,000 Bubble size = Grade credits (% NdPr) 2 Enterprise value1 (A$m) 4,000 Producti
Slide 11: Binding offtake target
Binding offtake target 4 Focus on strategic value and For personal use only NdPr % of Binding equity investment Offtake Discussion Group Location Oxide (Tpa)1 Offtake Target Targeting NdPr users not Secured Offtake (Binding Agreement) aligned with ‘Made in China 2025 Strategy’ Hyundai & Kia Kore
Slide 12: Project funding: indicative debt structure & status
Project funding: indicative debt structure & status Facility Amount (US$m) EFA & NAIF (US$m) Status For personal use only Project Finance Facilities EFA 125 125 Conditionally Approved3 US$80m NAIF 100 100 Conditionally Approved (A$150m)3 EDC 300 - LoI received 20 June 20234 KEXIM 75 - LoI received 4
Slide 13: Equity engagement
Equity engagement Potential build-up of equity capital For personal use only Cornerstone Group Public Market Customer Cornerstone & Other Strategic • Substantial holders Industry Cornerstone • Hyundai • Other customer cornerstones • Government seeded funds Institutional Investors with supply chain d
Slide 14: Refreshed leadership team and Board
Refreshed leadership team and Board For personal use only Mark Southey Darryl Cuzzubbo Chris Tonkin Cathy Moises Michael Roger Higgins1 Non-Executive Chairman Managing Director & Chief Non-Executive Director Non-Executive Director Spreadborough1 Non-Executive Director Executive Officer Non-Executive
Slide 15: Differentiating by ESG
Differentiating by ESG Arafura’s customers will secure materials from a leader in ESG For personal use only We have a defined pathway to net zero We recognise the interdependencies of ESG in our business We are building capability to deliver best- ESG practice ESG We are aligning our governance to i
Slide 16: Nolans: ready to go
Nolans: ready to go1 For personal use only Definitive Feasibility Study Native Title Agreement Mineral Leases granted Federal government approvals Northern Territory EFA / NAIF approvals Early works completed 54% of offtake target binding2 government approvals Extensive due diligence completed Remai
Slide 17: Contact
ASX: ARU For personal use only Contact Level 6, 432 Murray St Perth WA 6000 PO Box 5773 St Georges Terrace Perth WA 6831 T: +61 8 6370 2800 E: arafura@arultd.com (All corporate and general enquiries) E: nolansproject@arultd.com (Nolans Project enquiries only)
Slide 18: Appendices
For personal use only Appendices 17
Slide 19: Appendix 1: pure-play rare earth peer benchmarking
Appendix 1: pure-play rare earth peer benchmarking Mineral Contained NdPr NdPr Company Project Location Stage Product EV (A$m)1 TREO grade (%) NdPr enrichment (%) NdPr grade(%)2 Source(s) For personal use only Resources (Mt) (Mt) Production Measured: 9.0 Measured: 3.2% Measured: 26.1% Measured: 0.84
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