Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Corporate Update (July 2024)
18 slides from Arafura Rare Earths's corporate update, Jul 23, 2024
Slide 1: Arafura achieves major debt funding milestone
ASX: ARU Arafura Rare Earths Arafura achieves major debt funding milestone 23 July 2024
Slide 2: Agenda
Agenda 1 Disclaimer 8 Funding strategy 2 Debt secured: key milestone reached 9 Nolans Phase 2 preliminary study completed 3 Corporate summary 10 Structural supply deficit expected 4 Nolans in first quartile of cost curve 11 Creating Value: leveraging off a world class orebody 5 Debt structure – cond
Slide 3: Disclaimer
Disclaimer This presentation is dated 23 July 2024 and has been This presentation does not constitute an offer of any technical parameters underpinning the estimates in the This presentation contains forecast financial information prepared by Arafura Rare Earths Limited (“Arafura”, securities in Ara
Slide 4: Debt secured: key milestone in debt-led funding strategy
Debt secured: key milestone in debt-led funding strategy Arafura secures more than US$1 billion in debt and completion support Structural supply ✓ Key milestone in debt led funding strategy deficit of NdPr ✓ Geostrategic importance recognised by multiple expected to precede Nolans Export Credit Agen
Slide 5: Corporate Summary
Corporate Summary Developer Why the Nolans Project? ✓ Fully-permitted1 ✓ Construction-ready3 NdPr is essential for Supply security threat with ~90% of NdPr ✓ Single-site ore-to-oxide the energy transition supplied by China4 ✓ Tier 1 location ✓ Phase 2 preliminary study considered potential expansion
Slide 6: Nolans in first quartile of cost curve
Nolans in first quartile of cost curve CRU Cost Curve 2030 (US$/kg NdPr oxide)1 Nolans sits comfortably in the first quartile ✓ Nolans to sit in first quartile net of phosphoric acid by- 1st quartile 2nd quartile 3rd quartile 4th quartile product credits2 ✓ China dominates market share Cost ($/kg Nd
Slide 7: Debt Structure – conditionally approved
Debt Structure – conditionally approved* Tenor Amount Facilities Commercial lender commitments: (Years) (US$ million) Senior Debt Facilities ✓ ECA Covered Tranches Export Finance Australia 15 125 ✓ Cost Overrun Facility Northern Australia Infrastructure Facility 15 100 1 ✓ Contingent Instrument Faci
Slide 8: Sources and uses of funds
Sources and uses of funds* High degree of confidence in expected funding requirement Sources and uses of funds1 (US$ million) • Project appropriate gearing with approximately 50% debt and 50% equity • New equity requirement of US$713m excluding COF • Four layers of redundancy in funding package – US
Slide 9: Robust project economics
Robust project economics Key Project Information1,2 Mining and Production Long life, high margin project Mine Life (years) NdPr Oxide (tpa) 38 4,440 SEG/HRE Oxide (tpa) 5734 • Project economics reflects capital cost guidance Phosphoric Acid (tpa 54% P2O5 MGA) 144,393 released in October 2023 Realise
Slide 10: Funding strategy
Funding strategy Focused on execution certainty over speed Cornerstone Group Public Market Customer Cornerstone & Other Strategic • Substantial holders Industry Cornerstone • Other customer cornerstones • Government seeded funds Institutional Investors with supply chain diversification mandate Custo
Slide 11: Nolans Phase 2 preliminary study completed
Nolans Phase 2 preliminary study completed • Study considered potential for expanding the size of the Nolans processing facility by factors of up to 150 per cent 1 • Study considered opportunity to use expanded facility to process third-party rare earth feedstocks (including monazite concentrates) a
Slide 12: Why now: Structural supply deficit expected
Why now: Structural supply deficit expected NdPr oxide Ex-China Demand and Supply (mt) 1 Potential triggers for a structural supply deficit 1. Fundamentals: China supply constrained with CRU predicting output to grow at 2.5 per cent until 2028 falling to a 0.5 per cent thereafter1 Estimated 2. Gover
Slide 13: Creating Value: leveraging off a world class orebody
Creating Value: leveraging off a world class orebody Nolans: a differentiated proposition at the right time for the energy transition Benchmarking vs Lynas and MP Materials3 7,000 6,000 Bubble size = Grade (% NdPr) 2 5,000 Large, scalable High grade Enterprise value1 (A$m) resource 4,000 Developer P
Slide 14: Appendices
Appendices 14
Slide 15: 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) Resources (Mt) (Mt) Production Measured: 4.9 Measured: 3.2% Measured: 26.1% Measured: 0.84% ASX announcement: In
Slide 16: Appendix 2 – Project Economics Assumptions
Appendix 2 – Project Economics Assumptions All material assumptions underpinning the financial information set out on slide 9 (which describes the economics of the Nolans Project), except to the extent modified by the updated information set out in this Appendix 2, are the same as the assumptions di
Slide 17: Appendix – Project Economics Assumptions
Appendix 2 – Project Economics Assumptions Operating Costs • Sulphur represents approximately 8% of the Project’s mine gate operating costs. Sulphur is a key input in the production of wet-process phosphoric acid and there is therefore a relationship between the sulphur and phosphoric acid price. Th
Slide 18: Contact
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)