Australian Rare Earths Limited · ASX:AR3
Australian Rare Earths — Shareholder Meeting (November 2022)
21 slides from Australian Rare Earths's shareholder meeting presentation, Nov 24, 2022
Slide 1: Koppamurra: Clay Hosted Heavy Rare Earths
For personal use only KOPPAMURRA Xz nbxz x Clay Hosted Heavy Rare Earths Developing an independent source of critical rare earths for a clean energy future 1
Slide 2: EVs & Wind Turbines Drive Decarbonisation
For personal use only EVs & WIND TURBINES DRIVE DECARBONISATION THE OPPORTUNITY ∙ Demand growth for EV’s and wind turbines require four key Rare Earth Elements ∙ Western World is seeking an independent supply chain (ex-China) ∙ Deposits containing all four REEs are rare THE KOPPAMURRA PROJECT ∙ Has
Slide 3: An Australian Critical Metals Company
For personal use only AN AUSTRALIAN CRITICAL METALS COMPANY Distribution of shareholders Experienced team, strong backing, well-funded with community support Directors and Management Other, 57.6% 25.0% Professor Dudley Kingsnorth Chair Internationally recognised rare earths industry expert, providin
Slide 4: The Rare Earth Supply Chain
For personal use only THE RARE EARTH SUPPLY CHAIN China and Myanmar dominate the supply chain, including majority of heavy rare earth production and end uses • Minerals containing Neodymium and Praseodymium EU Critical Raw Materials list 20201 are mined from multiple global sources, however, Dyspros
Slide 5: The Rare Earth Supply Chain
For personal use only THE RARE EARTH SUPPLY CHAIN China and Myanmar dominate the supply chain, including majority of heavy rare earth production and end uses Historical rare earth mine production by country2 Downstream supply chain also dominated by China2 Neodymium & Praseodymium Dysprosium & Terbi
Slide 6: Adamas Intelligence Forecasts
For personal use only ADAMAS INTELLIGENCE FORECASTS Supply deficits across all magnet REO’s will support price accretion for the remainder of this decade NdPr demand-supply balance (LHS) vs price (RHS) Dy demand-supply balance (LHS) vs price (RHS) Tb demand-supply balance (LHS) vs price (RHS) 250kt
Slide 7: Koppamurra: Our cornerstone asset
For personal use only KOPPAMURRA: Our cornerstone asset A highly valuable potential source of critical rare earths in a Tier-1 location • 100%-owned clay-hosted critical rare earths deposit located ~300km SE of Adelaide • Recent 104% increase in Mineral Resource to 81.4Mt at 785ppm TREO confirms Kop
Slide 8: Koppamurra: Australia's ionic clay hosted REE deposit
For personal use only KOPPAMURRA: Australia’s ionic clay hosted REE deposit Ionic clays Hard rock • Historically mined in China, now in Myanmar, but • China still dominates but mines in production and Location resources are depleting under development in USA, Australia etc • Supply virtually all hea
Slide 9: Globally Significant Resource
For personal use only GLOBALLY SIGNIFICANT RESOURCE Large, consistent, shallow deposit – exceptional growth potential • Updated July 2022 Indicated and Inferred Resource – 81.4Mt at Koppamurra mineral resource estimate – July 2022 785ppm TREO (Total Rare Earth Oxide) • +55% is in the Indicated class
Slide 10: Outstanding Growth Potential
For personal use only OUTSTANDING GROWTH POTENTIAL Deposit remains open with a substantial upside remaining • ~4,000km² of granted tenure in South Australia and Victoria • Updated July 2022 Mineral Resource based on drilling conducted over ~200km2 – equivalent to ~5% of the total area • Rare earth m
Slide 11: Recent Resource Expansion Drilling
For personal use only RECENT RESOURCE EXPANSION DRILLING Validating consistent mineralisation across the project area Strong assays reveal significant extensions of clay-hosted mineralisation beyond the current Mineral Resource and Exploration Target areas. Results include: • KM2403 - 6m @ 1,668ppm
Slide 12: Koppamurra Metallurgy
For personal use only KOPPAMURRA METALLURGY Process development in collaboration with world experts • Results demonstrate a 50% reduction in acid consumption while maintaining average recoveries of 65% and up to 77% for the four key magnet Rare Earth Elements • Consistent recovery achieved across a
Slide 13: Trial Mining & Rehabilitation Program
For personal use only TRIAL MINING & REHABILITATION PROGRAM Commitment to continuous land rehabilitation as part of the mining process Late April 2022 Soil Improvement Trial End June 2022 September 2022 • Innovative trial mining program completed in April-June 2022 • Provided insights into geologica
Slide 14: Community and Land
For personal use only COMMUNITY AND LAND An active and responsible member of the community ✔ Naracoorte Office Opening ✔ Full-time local Personnel • Naracoorte office/warehouse established and managed by local personnel ✔ Sponsorships • Groundwater, ecological and heritage studies have commenced ✔ S
Slide 15: Achievements and Future Milestones
For personal use only ACHIEVEMENTS AND FUTURE MILESTONES 9,920m drill program completed(899 holes) Highest grades discovered Koppamurra Exploration A$12m IPO and AR3 Official opening of Naracoorte (+9,244ppm TREO) tenement granted listing office/warehouse SEP 2020 APRIL 2021 JULY 2021 OCTOBER 2021 D
Slide 16: Achievements and Future Milestones
For personal use only ACHIEVEMENTS AND FUTURE MILESTONES Positive metallurgical results (45-68% TREO recoveries) Strong Assays Endorse 11,480m drill program Mineral Resource Further Resource completed(1,158 holes) Estimate update Growth at Koppamurra MARCH 2022 APRIL 2022 MAY 2022 JULY 2022 SEPT 202
Slide 17: Achievements and Future Milestones
For personal use only ACHIEVEMENTS AND FUTURE MILESTONES Near-term catalysts: • Mining Lease Application studies and submission • Continued drilling to grow the resource • Finalise mineral processing tests & flowsheet development • Preliminary mine planning and project studies Q4 2022 to Q1 2023 17
Slide 18: Why Australian Rare Earths?
For personal use only WHY AUSTRALIAN RARE EARTHS? 1 2 3 THE OPPORTUNITY THE KOPPAMURRA PROJECT THE PATH TO PRODUCTION • Substantial market opportunity driven by • Endowment of all four of the high • Low CAPEX, staged development to global decarbonisation value rare earth elements reduce project risk
Slide 19: Supplementary Information
For personal use only SUPPLEMENTARY INFORMATION 19
Slide 20: The Market
For personal use only THE MARKET Value over volume remains key with China continuing to dominate supply Rare earth oxides market share by volume Rare earth oxides market share by value Medium Rare NEODYMIUM, PRASEODYMIUM, Lanthanum- Earth Elements, Cerium… Other, 4% DYSPROSIUM AND TERBIUM – 3% Heavy
Slide 21: Rare Earths
RARE EARTHS ASX: AR3 Securing Australia’s rare earths for a diversified sustainable future
Australian Rare Earths — Shareholder Meeting (November 2022) on 6ix