Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — Lynas — Nasdaq Virtual Investor Conference (March 2018)
19 slides from Lynas Rare Earths's conference presentation, Mar 22, 2018
Slide 1: Lynas Corporation
For personal use only LYNAS CORPORATION Amanda Lacaze, CEO & Managing Director March 2018 ASX Ticker: LYC ADR Ticker: LYSDY (ratio: 1 Ord = 1 ADR) 1
Slide 2: Disclaimer
Disclaimer For personal use only This Presentation has been prepared by Lynas Corporation Limited (ABN 27 009 066 648) (Lynas or financial position and performance are also forward-looking statements. Forward-looking statements, the Company) This Presentation contains summary information about Lynas
Slide 3: Introduction to Lynas
Introduction to Lynas For personal use only ▪ Lynas Corporation Ltd (ASX: LYC) is an integrated miner and Type of Share Ordinary producer of Rare Earths, operating a high grade mine in Mt Weld, Western Australia and a reliable, sustainable chemical processing operation in Kuantan, Malaysia ASX Ticke
Slide 4: The Rare Earths Market
For personal use only The Rare Earths Market 4
Slide 5: Rare Earths are essential for many future facing technologies
Rare Earths are essential for many future facing technologies Where RE Property RE Allows Final Impact Key For personal use only Products Wind Permanent magnet Nd Pr, Dy No gear box (Cost) Energy turbines generators Better yield in light produced at winds lower cost Cars Permanent Nd Pr, Dy Electric
Slide 6: Lynas: A market-leading Rare Earths company
Lynas: A market-leading Rare Earths company For personal use only Investing in Lynas provides access to existing markets and exposure to growing tech markets 6
Slide 7: Global operations & customer relationships
Global operations & customer relationships Lynas Corporation Ltd (ASX: LYC) is an integrated miner and producer of Rare For personal use only Earths, operating a high grade mine in Mt Weld, Western Australia and a reliable, sustainable chemical processing operation in Kuantan, Malaysia Europe & USA
Slide 8: World's highest grade operating Rare Earths mine
World’s highest grade operating Rare Earths mine • Simple open pit mine with over 25 years life of mine, located in Mt Weld, Western For personal use only Australia, 1000km from Freemantle port. • Currently mining by campaign the Central Lanthanide Deposit (CLD), the highest grade operating Rare Ear
Slide 9: Concentration plant at Mt Weld
Concentration plant at Mt Weld • Flotation process concentrates ore from 16.5% to 38% Rare Earth content For personal use only • Recovery and output rates well above design • Optimised on energy savings, water balance, tailings management and environmental protection Lynas Mt Weld Concentration Plan
Slide 10: Lynas Malaysia: Largest Rare Earths chemical processing plant in the world
Lynas Malaysia: Largest Rare Earths chemical processing plant in the world For personal use only • 22,000 t/year, increasing to 25,000 t/year from January Product LAMP Major 2019 production % Application • 500 t/mth NdPr increasing to 600 t/mth Magnets, Catalyst, NdPr, Nd, Pr 27% Pigments oxide • 50
Slide 11: Lynas: Leading the market in sustainability
Lynas: Leading the market in sustainability For personal use only Resource optimisation Best practice Delivering to Ongoing community & water management environmental customer needs engagement strategies Lynas has, and continues Lynas prioritises the safety Lynas is supporting Lynas runs long and sh
Slide 12: Lynas NEXT: Investing in our future
Lynas NEXT: Investing in our future For personal use only Increase productivity Deliver better returns Strengthen the Continue to drive Contribute to total of our existing on total Rare Earths business with new total cost down market growth assets processed customer offers Promote Rare Earths Invest
Slide 13: Half Year FY2018 results highlights
Half Year FY2018 results highlights For personal use only ▪ Record profit from operating activities ▪ Revenue growth of 75% to A$200.9m (H1 2017: A$114.6m) ▪ Total REO production growth of 17% to 8,839 tonnes (H12017: 7,579 Record profit tonnes) • NdPr production up by 6% EBIT A$63m • Significant im
Slide 14: Increased production and sales volumes
Increased production and sales volumes Total Operating Costs vs Production Sales Revenue (A$'m) For personal use only (excl. restructuring costs, STI & employee share based payment) 250 10,000 140 Sales Revenue (Gross) 9,000 120 200 8,000 7,000 100 150 A$'m 6,000 A$'mil 80 REOt 5,000 100 4,000 60 3,
Slide 15: Improved cash flow
Improved cash flow For personal use only Cash Flow Production Volume (excl. AELB payment) 10,000 100 8,839 9,000 7,577 80 8,000 7,000 6,337 60 A$'mil 6,000 REOt 40 5,000 4,221 4,000 20 3,000 0 2,000 HY15 HY16 HY17 HY18 1,000 2,507 2,665 1,905 -20 987 0 HY15 HY16 HY17 HY18 -40 NdPr (RTS) Others (RTS)
Slide 16: Capital structure
Capital structure For personal use only Debt Outstanding at 14 Fully Diluted Shares at 14 Debt Class Equity Class March 2018 March 2018 JARE Facility at 3.75% p.a. US$ 170,000,000 Ordinary Shares 643,660,433 maturing 30 June 2020 Convertible Bonds at 1.875% Convertible Bonds at a p.a. US$ 26,500,000
Slide 17: Questions
For personal use only Questions www.lynascorp.com 17
Slide 18: Share Data / ADR Data
Share Data / ADR Data For personal use only Share Data Type of Share Ordinary ASX Ticker LYC ISIN AU000000LYC6 Shares Outstanding as at 14 March 643,660,433 2018 ADR Data Ratio (Ordinary Share : ADR) 1:1 OTC Ticker LYSDY ISIN US5510733075 ADR Level Level 1 Exchange OTC Sponsor Bank of New York Mello
Slide 19: Competent Person's Declaration
Competent Person’s Declaration For personal use only Competent Person’s Declaration and Compliance Statements Exploration information in this presentation is based on, and fairly represents, information compiled by Mr. Brendan Shand who is a consultant geologist to Lynas Corporation. Mr. Shand is a
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