Slide 1: Completion of the Mt Weld Rare Earths Feasibility Study
Completion of the Mt Weld Rare Earths Feasibility Study March 2005
Slide 2: Disclaimer
Disclaimer The information contained in this presentation has been prepared using the information available to Lynas Corporation Limited (Lynas) at the time of preparation of the presentation. External or other factors may have impacted on the business of Lynas and the content of this presentation s
Slide 3: Table of contents
Table of contents 1. Introduction to Lynas Corporation Limited 2. Introduction to Rare Earths 3. Completed Feasibility Study 4. Financial Overview 2
Slide 4: Lynas is a Australian listed company
Lynas is a Australian listed company Intro to Lynas Australian • Head Office in Sydney • Mt Weld Rare Earths deposit in Western Australia • Additional significant mineralisation for Rare Metals including Nb, Ta, Ti, Zr, Rare Earths particularly weighted to the mid and heavy Rare Earths Listed and In
Slide 5: Lynas has a clear vision and strong values
Lynas has a clear vision and strong values Intro to Lynas Vision We will lead the growth of the global Rare Earths industry by creating a reliable, fully-integrated source of supply from mine through to customer Values • Strive for excellence in safety, health and the environment • Value our differe
Slide 6: Board of directors and management team
Board of directors and management team Intro to Lynas Board of Directors • Mr Nicholas Curtis, Executive Chairman • Chairman of Sino Gold • Founded Sino Mining International on behalf of the Chinese Government • Ex Macquarie Bank Executive Director • Mr David Davidson, Independent Director • Mr Jake
Slide 7: Introduction to Rare Earths
1. Introduction to Lynas Corporation Limited 2. Introduction to Rare Earths 3. Completed Feasibility Study 4. Financial Overview 6
Slide 8: What are Rare Earths?
What are Rare Earths? Intro to Rare Earths Rare Earths is the collective name for 15 metallic elements known as the Lanthanide series, plus Yttrium PERIODIC TABLE OF THE ELEMENTS 1 2 H He 1.008 4.003 3 4 5 6 7 8 9 10 Rare Earths Elements B C N O F Ne Li Be Atomic number symbol 6.941 9.012 10.81 12.0
Slide 9: Rare Earths enrich our lives in many ways…
Rare Earths enrich our lives in many ways… Intro to Rare Earths Glass Colour & Light Miniaturisation Polishing Powerful magnets Powders - Neodymium - Cerium Phosphor for CRT & PDP screens Ceramic capacitors - Europium / Yttrium - Neodymium - Terbium / Yttrium - Lanthanum Glass Screens - Ce
Slide 10: Rare Earths have many applications in the automotive industry
Rare Earths have many applications in the automotive industry Intro to Rare Earths Glass and Mirrors Car body primers UV cut glass polishing powder and anti-corrosive • Cerium Daimler Chrysler Fuel Cell • Cerium coatings Vehicle • Yttrium Diesel Fuel Additive Engine • Cerium Sensors • Lanthanum • YS
Slide 11: … Electronics is also a key industry for Rare Earths
… Electronics is also a key industry for Rare Earths Intro to Rare Earths Integrated Circuit Speakers • Ultra high purity Ce polishes silicon • Nd magnet in PC wafer and Notebook NEC Notebook powered by integrated Fuel Cell speakers • Nd magnets in Screen headphones of Ipod • Eu, Tb phosphors and MP
Slide 12: Growth of Rare Earths market
Growth of Rare Earths market Intro to Rare Earths Estimated Total Consumption of Rare Earths, ± 5% 1990 to 2010 (Metric Tonnes) (US$/kg) 140000 20 17.91 16.68 18 RARE EARTH DEMAND 16.53 120000 16 15.85 100000 14 14.21 13.16 11.60 12 80000 8.45 10 60000 7.81 6.90 6.56 6.11 8 5.73 5.03 40000 5.03 6 4.
Slide 13: Completed Feasibility Study
1. Introduction to Lynas Corporation Limited 2. Introduction to Rare Earths 3. Completed Feasibility Study 4. Financial Overview 12
Slide 14: Location of Mt Weld
Location of Mt Weld Feasibility study 13
Slide 15: Overview of the integrated supply chain
Overview of the integrated supply chain Feasibility study The Upstream Project Downstream Method Open Cut Flotation Acid Cracking Solvent Mining Extraction Output Ore Concentrate SEG* 97.5% RE Compounds HRE** 97.5% LPN RECl*** 45% REO CeCl**** 45% 14.8% 40% ~100% Concentrati on SEG 388 tpa Planned H
Slide 16: The Mt Weld mine
The Mt Weld mine Feasibility study Access to the world’s richest known Rare Earths deposit, located at Mt Weld, Western Australia All environmental and Aboriginal Heritage studies and approvals are complete Lynas plans to transport material from Mt Weld to Port of Esperance for shipping to China Not
Slide 17: Mt Weld's grade and composition are a natural advantage
Mt Weld’s grade and composition are a natural advantage Feasibility study Mt Weld Composition vs Baotou Composition By Weight By Value By Weight By Value Lanthanum oxide 25.50% 10% 25.70% 13% Cerium oxide 46.70% 17% 51.30% 24% Praseodymium oxide 5.30% 10% 5.40% 13% Neodymium oxide 18.50% 25% 15.70%
Slide 18: Rare Earths concentration
Rare Earths concentration Feasibility study Successfully completed technical feasibility study for the production of Rare Earths concentrate in China Lynas’ concentration process employs a novel state-of-the-art flotation regime A pilot plant has been completed achieving a steady state process recov
Slide 19: Rare Earths cracking and initial separation
Rare Earths cracking and initial separation Feasibility study The cracker and initial separation plant on the same integrated site as the concentrator Chinese design institute has completed engineering study for a cracking and initial separation plant in China – this is mature rare earths industry t
Slide 20: Investment Highlights
1. Introduction to Lynas Corporation Limited 2. Introduction to Rare Earths 3. Investment Highlights 4. Financial Overview 19
Slide 21: Strong financial performance via growth
Strong financial performance via growth Financial overview (In Million AUD) REVENUE EBITDA NPAT : 17% 23% : 40% GR : C A AGR AGR C C 91 35 20 74 28 65 21 13 48 15 9 5 Y 1E Y 2E Y 3E Y 5E Y 1E Y 2E Y 3E Y 5E Y 1E Y 2E Y 3E Y 5E 20
Slide 22: Key Project Financials
Key Project Financials Financial overview Upstream Project capital expenditure A$49.2M as at December 2004 Project NPV with 8% real discount rate A$106M Project IRR 30% 21
Slide 23: Investment Case
Investment Case Rare Earths play a critical role in current industries and trends The Rare Earths market is global and growing rapidly Lynas has completed the feasibility study for Mt Weld The feasibility study shows robust cashflows and strong financial performance Most major approval hurdles have
Slide 24: www.lynascorp.com
www.lynascorp.com 23