Vhm Limited · ASX:VHM
Vhm — Investor Presentation (July 2024)
35 slides from Vhm's investor presentation, July 2024
Slide 1: VHM Limited
VHM Limited Securing supply of critical minerals for the global energy transition July 2024 ASX:VHM Acknowledgement of Country VHM acknowledges the Australian Aboriginal and Torres Strait Islander peoples as the first inhabitants of the nation and the traditional custodians of the lands where we liv
Slide 2: Disclaimer and forward-looking statements
Disclaimer and forward-looking statements Important Information Forward-looking statements are based on numerous assumptions regarding VHM Limited’s present and future business strategies and the environment in which VHM Limited will operate in the future. Among the important This presentation has b
Slide 3: Agenda
Agenda 1 Company Overview 2 Goschen Project 3 Markets 4 Look Ahead Appendix A Exploration Portfolio B Peer Comparison Tables C JORC Tables 3
Slide 4: 1. Corporate Snapshot
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Slide 5: VHM Limited (ASX:VHM) overview
VHM Limited (ASX:VHM) overview Australian owned rare earths and mineral sands Corporate Snapshot mine and processing developer GOSCHEN PROJECT3 Market Cap1 Top 20 Shareholders 210Mt @ 3.8% THM, MRE 629Mt, 413Kt TREO, Zircon A$91.61 million Top 20: 34% 21.4%, Rutile 9.7%, Mon 3.5%, Xen 0.6% Ellison W
Slide 6: Board and management team
Board and management team Michael Sheridan BEc, LLB, LLM, GradDipAppFinInv Chief Financial Officer 30+ years’ operations and financial experience as executive, having worked at senior management levels in publicly listed companies, predominantly in the international Ian Smith Ron Douglas Maree Arnas
Slide 7: Key highlights
Key highlights Emerging Tier 1 integrated rare earth and minerals sands project with globally significant mineral assemblage Construction ready with pathway to production: in anticipation of primary approval. Simple operating methodologies: Shallow-pit mined via truck-shovel with conventional proc
Slide 8: Accelerating Goschen towards production
Accelerating Goschen towards production Extensive development works complete Definitive Feasibility Study Goschen Environment 30% Capex Reduction Extensive Exploration Refreshed Approval for Goschen Base Plant Drill Program 20–25-year Life of Mine I NPV A$1.525B I IRR 44% I Low Capex I Report with t
Slide 9: 2. Goschen Project Overview
2.Goschen Project Overview
Slide 10: Staged project development
Staged project development Producing dual stream, concentrate products from base plant followed by value-add carbonate product Base Plant Hydromet Circuit Mining unit plant Hydromet Circuit with a nameplate capacity of Feed preparation plant 12,000 tpa Wet concentrator plant Co-located at
Slide 11: Infrastructure rich area
Infrastructure rich area Optimally positioned to access existing local infrastructure Rail Water RL6806 Power (Solar farms) Ports Power (Transmission lines) Development 11
Slide 12: Goschen permitting pathway
Goschen permitting pathway Approvals milestones achieved Primary Approval (EES) Secondary Approvals (Work Plans, Mining Licence) Source: Engage Victoria website Q4 2023 Victorian Minister for Planning approved public exhibition for Goschen EES1 Exhibition stage: Public Submissions2 Monday 20 Novembe
Slide 13: Pathway to production
Pathway to production Immediate next steps EES Ministerial approval Mining Licence approval Final Investment Decision Completed Forecast Forecast commissioning 2023 2024 2025 2026 Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Definitive Feasibility Study Detailed Engineering Offtake a
Slide 14: Capex is amongst the lowest of selected rare earth projects
Capex is amongst the lowest of selected rare earth projects Oxide Carbonate Concentrate Arafura (Nolans) $1,680m ASM (Dubbo) $1,678m Hastings (Yangibana) $474m VHM (Goschen Base Plant $461m and Hydromet) Goschen’s low development capex Peak (Ngualla) $434m VHM (Goschen Base Plant) $337m 14 Commercia
Slide 15: Rare earth peer comparison
Rare earth peer comparison Attractive proportion of rare earth elements – heavy and light 70 Dy Tb 60 Nd Pr 50 US$ of magnet REO per kg of REO Dy and Tb are sourced almost entirely from ionic 40 clays in China and Myanmar There is an opportunity 30 for Victorian projects to be an alternative source
Slide 16: Funding strategy
Funding strategy Multifaceted funding strategy comprising debt, equity and government funding GOSCHEN VHM is progressing its multifaceted funding PROJECT strategy for the Goschen Project with a view to FUNDING finalising the funding pathway ahead of Final Investment Decision. DEBT EQUITY We anticipa
Slide 17: 3. Markets for Critical Minerals
3. Markets for Critical Minerals
Slide 18: Secure supply of light and heavy rare earths
Secure supply of light and heavy rare earths Goschen has the critical minerals required for electrification and decarbonisation 87% of Goschen basket value is derived from the critical rare earths crucial for electric vehicles and the green energy transition1. Notes: (1) Rare Earth Market Outlook, I
Slide 19: Market outlook: magnet rare earth oxides
Market outlook Forecasted demand for magnet rare earth oxides Forecast demand and price for NdPr Adamas projects by 2040 the global demand for magnet rare earth oxides will reach 330,000 tonnes – triple the global consumption in 2023 Demand is driven by offshore wind power installations, passeng
Slide 20: Market outlook: zircon
Market outlook Forecasted demand zircon Forecast demand for zircon sands by region Zircon prices have remained relatively stable at ~US$2,000/tonne. TZMI expects long-term global zircon demand to grow at 2.6% per annum with India, the Americas and other Asia Pacific markets expected to be the lo
Slide 21: Critical minerals supply chain security
Critical minerals supply chain security Policy initiatives driving international commercial co-operation Japanese EU Critical Australian South Korea US Inflation Economic Minerals Raw Critical Minerals Critical Minerals Reduction Act Security Materials Act Strategy Strategy Promotion Act Supporting
Slide 22: The Australian Government is backing the critical minerals sector
The Australian Government is backing the critical minerals sector Export Finance Australia National Reconstruction Fund Critical Minerals Office Clean Energy Finance Corporation Commonwealth Scientific and Industrial Research International Critical Minerals Partnership Fund Organisation Australian N
Slide 23: Upcoming milestones
Upcoming milestones Goschen EES Finalise further offtake Secure arrangements Construction Approval by Planning and strategic for a Final Investment for Phase 1 subject to Minister partnerships Decision approvals Australian owned rare earths and mineral sands developer 23
Slide 24: Appendix A. Exploration Portfolio
Appendix A. Exploration Portfolio
Slide 25: VHM Limited geological overview
VHM Limited geological overview A major critical mineral inventory of a global scale is in the making at VHM With the discovery of the Cannie and Nowie Projects the Company confirms a major new critical minerals province centred on top and west of the Lake Boga granite1. A significant Critical Miner
Slide 26: Exploration activities: Area 4 Orion Strandline
Exploration activities Area 4 Orion Strandline - Maiden Probable Ore Reserve Added 11.5 Mt @ 5.6% THM to Company Probable Ore Reserve1. Within this Ore Reserve a high-grade mineable horizon of 2.6 Mt @ 9.6% THM exists at the top of the ore body 6m from surface, including: 245,500 tonnes of mineabl
Slide 27: Exploration activities: Nowie Project maiden resource
Exploration activities Maiden Mineral Resource estimate for Nowie Project Nowie Project is located 22 kilometres north of the flagship Goschen Project in north west Victoria. A new Inferred Mineral Resource estimate (MRE) of 16.4Mt @ 3.8% THM grade at Nowie1. Results include 6.4Mt @ 6.1% THM contain
Slide 28: Exploration activities: High-grade strandlines opportunity
Exploration activities High-grade strandlines opportunity New South Wales 21 strandlines identified by processing historic data1. Cygnus strandline 7km east of Goschen Project has returned from VHM drilling very high-grade, 6m below surface 2m >60%THM containing 2.9% in-situ zircon + titanium di
Slide 29: Appendix B. Peer Comparison Data
Appendix B. Peer Comparison Data
Slide 30: Project comparison table data for capex
Project comparison table data for capex Name Project Product Plant type Plant Feed Annual Production Stage of Capital Cost Location Rate Development ($A) Arafura1 Nolans Oxide SX Facility 1 Mtpa 4.9ktpa DFS N.T. $1.680B ASM2 Dubbo Oxide SX Facility 1 Mtpa 1.5ktpa DFS N.S.W $1.678B VHM3 Goschen Conce
Slide 31: Project comparison table data for rare earth basket value
Project comparison table data for rare earth basket value Magnet Rare Earth Oxide % Distribution of Rare Earth Product Neodymium Praseodymium Dysprosium Terbium Stage of Market Cap* Name Project Product Location (Nd) (Pr) (Dy) (Tb) Development ($A) Arafura1 Nolans Oxide 20.5 5.9 0.3 0.1 DFS N.T. $45
Slide 32: Appendix C. JORC Tables
S VHM Limited Appendix C. JORC Tables
Slide 33: Company Mineral Resources
Company Mineral Resources 892.1 Mt Mineral Resource estimate Notes: Any discrepancies in totals are a function of rounding. 1. Mineral resources reported at a cut-off grade of 1.0% THM. 2. Mineral resources reported at a cut-off grade of 1.75% THM. 3. Mineral resources reported at a cut-off grade of
Slide 34: Company Ore Reserves
Company Ore Reserves 210.2Mt Ore Reserve Note: (1) Any discrepancies in totals are a function of rounding. THM Assemblage and Rare Earth Oxides are reported as a percentage of in-situ THM content. The Ore Reserve was updated and disclosed under the JORC Code (2012) in the ASX release published 29 Se
Slide 35: For further information contact
vhmltd.com.au Level 11, 330 Collins Street, Victoria 3000 For further information contact: Ron Douglas Chief Executive Officer Ron.Douglas@vhmltd.com.au Carly O’Regan Executive General Manager Carly.Oregan@vhmltd.com.au