Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Non-Deal Roadshow (February 2008)
16 slides from Arafura Rare Earths's roadshow presentation, Feb 4, 2008
Slide 1: Arafura Investor Roadshow
For personal use only ARAFURA INVESTOR ROADSHOW Alistair J Stephens Managing Director February 2008
Slide 2: Important Notice
Arafura Resources Ltd 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
Slide 3: Shares and Options (ASX: ARU / ARUO)
Arafura Resources Ltd For personal use only Shares and Options (ASX: ARU / ARUO) As at 31 December 2007 Ordinary shares 143.9 million Listed options 10.6 million 13 cent expiring 30 June 2008 Unlisted options 6.65 million unlisted options Cash in bank $18.4m Iron royalties $2.5m 50% received AusIndu
Slide 4: Achievements in 2007
Achievements in 2007 For personal use only 1. Project PFS Valuation NPV AUD $1.1 Billion 2. Drilling has identified additional mineralisation. 3. The development of a recovery process 4. High recovery and high quality products Rare earths 83% highest known for any RE deposit Phosphate 80% high p
Slide 5: Northern Territory Community
Northern Territory Community For personal use only Keeping the community informed Helping in education Supporting the local community Employing local workers
Slide 6: Nolans – 2008
Nolans – 2008 For personal use only Resource drilling program at Nolans is + 50% complete Assaying in progress Crushing & screening has commenced Bulk sampling is complete. Pilot plant at ANSTO Being prepared A good start with commodity prices RE Prices up 23% to US$14,250 / t for Nolans rare earths
Slide 7: Nolans Bulk Sampling
Nolans Bulk Sampling For personal use only Rare earths mineralisation is exposed at surface as seen in the bulk sample trench. Sampling the trench walls.
Slide 8: Nolans Bulk Sampling
Nolans Bulk Sampling For personal use only The soil cover is very shallow across the at Nolans project area as seen in the bulk sample trench. Samples were drummed for transport.
Slide 9: Nolans Bulk Sampling
Nolans Bulk Sampling For personal use only Drummed samples were stacked onto pallets and loaded into containers for transportation. The bulk sample was transported by road train in containers for crushing, screening and heavy media separation test work.
Slide 10: Nolans Development Plan
Nolans Development Plan For personal use only 2008 Pilot plant (2008) and DFS (2008/09) 2009 Approvals process 2010 Construction and commissioning 2011 Production at 50% utilisation = 10,000 t REO 2012 Production at 75% utilisation = 15,000 t REO 2013 Production at 100% utilisation = 20,000t REO
Slide 11: Nolans Market
For personal use only Nolans Market
Slide 12: Rare Earths Market
Rare Earths Market For personal use only China Produces >95% of a total demand of 108,000 tonnes Consumes 55% = 60,000 tonnes Non-Chinese supply Limited resources with modest expansion capability Currently dominated by low value light rare earths (Ce & La) Non-Chinese consumers High demand
Slide 13: China's Policy Changes
China’s Policy Changes For personal use only 2007 policy Export tariffs of between 10% and 15% depending on the type of rare earths material Effective 1 January 2008, export tariffs will increase: 15% for Neodymium, Praseodymium, as metal oxides chlorides or carbonate material and 25% for Dysp
Slide 14: Rare Earths Market
Rare Earths Market For personal use only China Produces >95% of a total demand of 108,000 tonnes Consumes 55% = 60,000 tonnes Current export quota <40,000 tonnes Plans to potentially reduce the quota Non-Chinese supply Limited resources with modest expansion capability Currently dominate
Slide 15: Looking Forward
Looking Forward For personal use only Exploration Rare earths Drilling to recommence at Nolans Vanadium Jervois drill program scheduled for Q2 2008 Nickel Mithril/BHPB to drill test Hammer Hill February-March Gold Drilling planned for Kurinelli late 2008 Nolans Pilot Plant – rare earths Complete hea
Slide 16: Shareholder Meetings
Shareholder Meetings For personal use only Australia shareholder meetings 2008 Darwin 4 February 2008 Adelaide 5 February 2008 Melbourne 6 February 2008 Sydney 7 February 2008 Brisbane 8 February 2008 Additional shareholder meeting to be planned later in the year Australia and Europe
Arafura Resources — Non-Deal Roadshow (February 2008) on 6ix