Northern Minerals Limited · ASX:NTU
Northern Minerals — Corporate Update (August 2019)
32 slides from Northern Minerals's corporate update, Aug 20, 2019
Slide 1: Company Update August 2019
For personal use only Company Update August 2019 Presented by George Bauk CEO / MD 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by Northern Minerals Limited (“Northern Minerals” or the “Company”). This document 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 made of North
Slide 3: Our Aspiration
Our Aspiration For personal use only Principal supplier of ethically produced Rare Earth metals and separated products from the world’s largest Heavy Rare Earth Element inventory within 10 years A ten year $228m journey Over the next 18 months our main focus: Accelerated exploration aiming to expa
Slide 4: Browns Range East Kimberley, WA
For personal use only Browns Range East Kimberley, WA ASX:NTU << AUSTRALIAN DYSPROSIUM >> 4
Slide 5: Increasing product value
Increasing product value For personal use only SEPARATED OXIDES Further processing to extract the rare earths into dysprosium oxide and terbium oxides for sale to magnet makers Increasing product value HYDROMETALLURGY Sequential chemical reactions and kiln furnacing to remove deleterious elements an
Slide 6: Value proposition
For personal use only Value proposition Globally significant Initiatives Browns Range is one of a few non- Several projects underway, including ore Chinese producers of dysprosium sorting and separation, to increase value EV growth & military use Exploration upside A key ingredient in permanent magn
Slide 7: Dysprosium – critical to the EV evolution
Dysprosium – critical to the EV evolution For personal use only With each electric vehicle using just over 100g of dysprosium, the company understands that demand may increase to over 3,500tpa by 2030. With over 98% of Dy production from China, there is strong interest in the US and globally for new
Slide 8: The competition is unsustainable
For personal use only The competition is unsustainable Southern China in situ leach mining operation Northern Minerals Browns Range 98% of world’s heavy rare earths produced by China; These types of operations are being phased out, Many operations are in situ leach operations, which however th
Slide 9: Dysprosium price is up 58% since the start of 2019
Dysprosium price is up 58% since the start of 2019 Dysprosium Oxide 99%min China US$/kg For personal use only 950 D ys p r o s i u m O x i d e 9 9 %m i n C h i n a U S $ / k g 850 290 270 750 250 650 DY US$/KG 230 Dy US$/kg 550 210 450 190 350 170 150 250 150 Source: Asian Metals ASX:NTU << AUSTRALI
Slide 10: Quality offtake partner - thyssenkrupp
Quality offtake partner - thyssenkrupp For personal use only Northern Minerals has entered into an offtake agreement with thyssenkrupp Materials Trading GmbH (thyssenkrupp) for all mixed heavy rare earth carbonate from the Browns Range Pilot Plant Project, including all stockpiled product. The agree
Slide 11: Browns Range pilot plant flowsheet
Rare Earth Magnetic Dryer Kiln Carbonate Separation Water Leach Precipitation Browns Range For personal use only pilot plant flowsheet Xenotime Concentrate Stockpile Rare Earth Carbonate Bagging Crushed Ore Stockpile Tails Crusher Ball Mill Flotation CCD Purification ASX:NTU << AUSTRALIAN DYSPROSIUM
Slide 12: Ore sorting – a game changer
Ore sorting – a game changer For personal use only Ore sorting project enhancement initiative has progressed with the selection and deposit paid on a Steinert ore sorter. Nexes Bonum Pty Ltd has been engaged to undertake the front-end engineering & design (FEED) for the inclusion of the ore sorter i
Slide 13: Rare earth separation scoping study underway
Rare earth separation scoping study underway For personal use only Scoping study commenced to investigate downstream processing of mixed rare earths into separated rare earth oxides U.S.A based K-Technologies Inc selected to undertake bench scale testwork and Scoping Study Samples to be dispat
Slide 14: Staged development plan
Staged development plan For personal use only Test Pilot Plant Mine xenotime ore Produce mixed RE carbonate Export to offtake customers Refine Project Validate & refine flowsheet 02 Implement ore sorting Improve xenotime conc. grade Investigate plant efficiencies Develop Full Project 03 Economies of
Slide 15: Exploration underway in 2019
For personal use only Exploration underway in 2019 The Browns Range dome is a massive geological feature covering 1,500km2 and stretching 60km x 30km most of which hasn’t been effectively explored New discoveries 20+ year life target High-grade discoveries made in Focus on growing mine life from 11
Slide 16: 2019 & 2020 Exploration Program
2019 & 2020 Exploration Program Exploration focus on high-grade, near surface deposits (Unconformity-related) For personal use only 2019 A$3.5m program for remainder of 2019 including: Up to 10,000m of RC and RAB/Aircore drilling Diamond drilling Ground geophysics Resource estimation Recru
Slide 17: Dazzler Mineral Resource
Dazzler Mineral Resource For personal use only TREO Dy2O3 Y2O3 Tb4O7 HREO TREO Category Mt % kg/t kg/t kg/t % kg Indicated - - - - - - - Inferred 0.14 2.23 2.08 12.79 0.27 93 3,200,000 Total 0.14 2.23 2.08 12.79 0.27 93 3,200,000 REO % of Total REO La2O3 1.20 CeO2 3.44 Pr6O11 0.48 Nd2O3 2.21 Sm2O3 1
Slide 18: Strengthening our balance sheet
Strengthening our balance sheet For personal use only In the year 2019 to date we have: announced A$100m in equity raised and banked A$72m to date; repaid A$27 million to close out Brevet R&D loan; repaid the Lind facility; A$20m announced BGIA – subject to FIRB / Shareholder Approval. The k
Slide 19: NTU Board
Colin McCavana - Non-executive Chairman (appointed 2006) CM Mr McCavana has more than 35 years of management experience worldwide in the earthworks, construction and mining industries. NTU Board George Bauk - Managing Director / CEO (appointed 2010) For personal use only George is an experienced exe
Slide 20: Corporate overview
Corporate overview Ordinary Shares as at 15 Aug 2019 2,495M For personal use only Options, Performance Rights & Convertible Notes as at 107M 15 August 2019 Market Capitalisation as at 15 Aug 2019 $187M Cash (30 June 2019) $8.1M Debt (as at 31 July 2019): ATO (under appeal with AusIndustry) $13.3M Si
Slide 21: In conclusion
In conclusion For personal use only First rare earth carbonate pilot plant production in October 2018, following practical completion including first shipment in December 2018 Pilot plant project to demonstrate and assess economic and technical feasibility of larger operation thyssenkrupp offtake si
Slide 22: Thank you
For personal use only Thank you Contacts George Bauk, Managing Director & CEO gbauk@northernminerals.com.au Mark Tory, Chief Financial Officer & Company Secretary mtory@northernminerals.com.au Northern Minerals Andrew Rowell, Investor Relations Director, Cannings Purple Level 1, 675 Murray Street We
Slide 23: Appendices
For personal use only APPENDICES ASX:NTU << AUSTRALIAN DYSPROSIUM >> 23
Slide 24: Corporate leadership
For personal use only Corporate leadership Our people embody the Northern Minerals SPIRIT, a culture of continually striving to deliver exceptional outcomes, leadership and improvements. George Bauk, MD/CEO Robin Wilson, Expl. Mgr MD Since 2010, George has lead the EM Original Browns Range team from
Slide 25: Operational leadership
For personal use only Operational leadership Our team of operational specialists have years of experience in the production of rare earths. Having experts in their fields allows us to maximise value for shareholders. Robin Jones, COO Eben Van Rooyen – Eng. Mgr COO Driven Browns Range pilot plant to
Slide 26: Filling the supply gap
Filling the supply gap For personal use only Chinese illegal production is expected to continue falling as the Government cracks down. Even with efficiencies in electric motors, the supply/demand gap is expected to continue widening. Browns Range Full-scale potential Browns Range PP production => De
Slide 27: Iceman discovery
Iceman discovery For personal use only Width From Estimated Hole ID To (m) % TREO (m)* (m) pXRF grade BRIR0001 No significant results BRIR0002 11 13 24 4.83 4% BRIR0002 2 37 39 0.16 BRIR0003 8 27 35 0.37 0.6% BRIR0004 7 26 33 1.20 3% BRIR0005 No significant results BRIR0006 1 16 17 1.28 BRIR0007 7 4
Slide 28: Mineral Resources
TREO Dy2O3 Y2O3 Tb4O7 HREO TREO Deposit Classification Mt % kg/t kg/t kg/t % kg Indicated 2.88 0.84 0.74 4.89 0.11 89 24,195,000 Wolverine Inferred 1.97 0.89 0.76 5.15 0.11 88 17,588,000 1 Total 4.85 0.86 0.75 4.99 0.11 89 41,786,000 For personal use only Indicated 0.12 1.8 1.62 10.98 0.22 94 2,107,
Slide 29: Ore Reserves
TREO TREO Dy2O3 Dy2O3 Tb4O7 Tb4O7 Y2O3 Y2O3 Deposit Class Mt kg/t kg kg/t kg kg/t kg Kg/t kg OPEN PIT For personal use only Wolverine Probable 0.72 6.17 4,458,000 0.55 400,000 0.08 57,000 3.6 2,598,000 Area 5 Probable 0.47 2.24 1,048,000 0.14 65,000 0.02 10,000 0.99 463,000 UNDERGROUND Wolverine Pro
Slide 30: Targeted annual production of mixed RE carbonate
Targeted REO contained in mixed RE carbonate Annual production (000s kg) For personal use only Lanthanum 5.8 Cerium 15.2 Praseodymium 2.8 Product specification available for REC Neodymium 10.6 REC samples validated by several downstream separators Samarium 11.4 Europium 2.4 REC suitable for solvent
Slide 31: Beyond Browns Range
JOHN GALT Beyond Browns Range For personal use only Rock chip samples from the Boulder Ridge project confirm high-grade Heavy Rare Earths (HRE) Best results exceed 12% TREO, including up to 1.15% Dysprosium, with a dominance of HRE – up to 99% Reinforces significant growth potential in Browns Range
Slide 32: For personal use only
For personal use only ASX:NTU << AUSTRALIAN DYSPROSIUM >> 32