Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Shareholder Meeting (October 2021)
19 slides from Arafura Rare Earths's shareholder meeting presentation, Oct 21, 2021
Slide 1: Annual General Meeting
21/10/2021 Annual General Meeting 21 October 2021 (ASX:ARU) 1
Slide 2: Disclaimer
21/10/2021 Disclaimer This presentation has been prepared by Arafura Resources Limited (Arafura, Arafura Resources or the Company) and is of a summary form only and therefore contains general background information which may not be complete. It should be read in conjunction with, and full review mad
Slide 3: NdPr Market Update
21/10/2021 NdPr Market Update (ASX:ARU) 3
Slide 4: NdFeB Magnets: A Vital Cog in the Electric Vehicle Revolution
21/10/2021 NdFeB Magnets Rare Earth demand growth from new EV A Vital Cog in the Electric Vehicle sales by scenario Revolution 2040 compared to 2020 16 Stated Policies Scenario EV market growth is exponential: 10 to 14 15 x Sustainable Development Scenario 12 2020 40 times in the next 20 years which
Slide 5: A lesson in the Auto Semiconductor Shortage
21/10/2021 A lesson in the Auto ➔ The shortage has caused billions of dollars in lost revenue for the Auto industry Semiconductor ➔ It highlights how a tiny cog in the supply chain can Shortage disrupt the global market The Looming NdPr NdFeB Magnet Components in an EV Shortage ➔ China is the only c
Slide 6: Supply Shortage
21/10/2021 Increasing DEMAND Supply * (2020 data) Shortage • Automotive sector is forecast to consume nearly 50% of NdFeB supply • 2030 demand forecast assumes ~34 million EVs • 24 million EVs at risk in 2025 if new supply isn’t secured SUPPLY Shortage Market analysts forecast a supply gap in 2030 t
Slide 7: Demand Driving NdPr Prices
21/10/2021 Demand 2030 Projected Demand Driving $250 2021 228,000 tonnes 2030 >450,000 tonnes NdPr Prices Magnet production* Magnet capacity* $200 38GW Chinese magnet makers 12GW 2030 unable to deliver on some 2021 long-term fixed price US$ per kilogram $150 contracts 3M 6-7M 14M 32M OEM’s starting
Slide 8: Supply also impacting Price
Supply also 21/10/2021 NdPr Oxide Output & Price EXW China impacting Price Chinese inventory stockpiles down by ~60% since mid-2020 Chinese producers near full capacity Supply chain issues highlighted by Source: Lynas Rare Earth (LYC output), BAIINFO (NdPr oxide production), Asian Metals (NdPr Price
Slide 9: Funding & Offtake
21/10/2021 Funding & Offtake (ASX:ARU) 9
Slide 10: Funding Strategy Leverages Global Focus on Critical Material Supply Chains
21/10/2021 Funding Strategy Leverages Global Focus on Critical Material Supply Chains Most countries targeting low Arafura has secured conditional letters Targeting Export Credit Agency’s (ECAs) that carbon transport and renewable of support for senior debt facilities: will provide debt and debt gua
Slide 11: Targeted Funding Structure
21/10/2021 Targeted Funding Offtakers Structure ECA Loans/ ECA debt and Guarantees Nolans Project guarantees will be critical but not the NAIF entire funding solution Commercial Debt EFA & Other Equity Instruments Portfolio of funding sources Strategic Equity- Value Chain Offtake, debt and Partners
Slide 12: Offtake Strategy
21/10/2021 Offtake Strategy Arafura is in discussions with 10 parties for >260% of Planned Production1 with a view to secure 85% as binding offtake Targeting NdPr users not aligned with Made in China 2025 strategy Progressing Offtake agreements with customers seeking supply security Current indicati
Slide 13: Nolans Supply Chain Model
TRACEABLE 21/10/2021 Nolans Supply BLOCKCHAIN NETWORK Chain Model Mine RE Extraction RE Separation Sustainable producer of NdPr to align (Australia) Toll Processing to “green procurement” strategy Contract NdPr Oxide Offtake Model proposes ‘Toll Processing’ of Metal Converter metal providing a compl
Slide 14: ESG - Current activities and initiatives
21/10/2021 ESG - Current activities and initiatives “Arafura’s ESG commitment is to be a trusted global leader and supplier of choice for sustainably mined and processed rare earth products, helping our customers deliver clean and efficient technologies. We are committed to delivering positive inter
Slide 15: How Are We Progressing?
21/10/2021 How Are We Progressing? (ASX:ARU) 15
Slide 16: Project Economics
21/10/2021 Project Economics Definitive Feasibility Study Mining and Production Mine Life (years) 38 (DFS) update released in NdPr Oxide (tpa) 4,440 May 2021 SEG/HRE Oxide (tpa) 474 Phosphoric Acid (tpa 54% P2O5 MGA) 144,393 Post-tax NPV8 of A$1.4 billion and IRR of 18.1% Financial US$ A$ Capital Co
Slide 17: Shovel Ready
21/10/2021 Shovel Ready Regulatory Security of Tenure & Social License to Operate Technical Customer verification of oxide products Australian Government provide conditional letters of support for $300M in debt $45.5M Successful capital raising completed to begin FEED Offtake engagement (advanced di
Slide 18: Nolans Key Development Milestones
21/10/2021 Nolans Key Development Milestones *Milestone targets are indicative and subject to change and are contingent upon funding, offtake activities and general market conditions 1. FID and First Production are both subject to outcomes with offtake and financing. 2. Conditional letters of suppor
Slide 19: Contact Information
21/10/2021 Contact Information Level 6, 432 Murray St Perth WA 6000 Australia +61 8 6370 2800 arafura@arultd.com www.arultd.com (ASX:ARU) 19
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