Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — Lynas — Roskill Rare Earths Conference 2012
15 slides from Lynas Rare Earths's conference presentation, Nov 14, 2012
Slide 1: Rare Earths – we touch them everyday
Lynas Corporation Rare Earths – we touch them everyday For personal use only Roskill Rare Earths Conference 14 November 2012 Nicholas Curtis AM
Slide 2: Disclaimer
Disclaimer For personal use only This Presentation has been prepared by Lynas Corporation Limited (ABN 27 009 066 648) (Lynas or the Company). This Presentation contains summary information about Lynas and its subsidiaries (Lynas Group) and their activities current as at the date of this Presentatio
Slide 3: Rare Earths after the shake-out
Rare Earths after the shake-out For personal use only Welcome to the “hangover” • End of significant price volatility • Future prices need to reflect capital and environmental costs of new supply • Long lead time to build sustainable and scalable supply Mount Weld basket price history Any lessons fr
Slide 4: A new look to the supply chain
Supply chain themes For personal use only A new look to the supply chain Pre-crisis Post-crisis • Upstream: world dependent on Chinese • Upstream: greater supply diversification from supply of raw materials Lynas and Molycorp • Mid-stream: limited supply chain integration • Mid-stream: Still in need
Slide 5: Industry needs a consolidated, integrated and sustainable supply base
Supply chain themes For personal use only Industry needs to be supplied by a consolidated, integrated and sustainable supply base • China restructuring to continue, supportive of prices • New suppliers responsible for providing supply visibility and certainty • “Green” supply chains a must for the R
Slide 6: Rare Earths Metals demand
Rare Earths Metals demand themes For personal use only Demand outlook China demand as a % of global demand 100% 88% • Magnet demand growth being challenged by 74% alternative technologies and current limited 80% supply visibility 60% • High inventories at customers 40% • Rebuilding of the non-China
Slide 7: Polishing demand
Polishing demand themes For personal use only Demand outlook China demand as a % of global demand 100% • Polishing sector has implemented some 75% 80% definitive productivity improvements in the use of Rare Earths. 60% 32% • Demand may bottom out in 2013 as 40% inventories unwind 20% • Impact of new
Slide 8: Catalysts demand
Catalysts demand themes For personal use only Demand outlook China demand as a % of global demand 100% • Autocat sector likely to display the most robust growth, unless EV technology accelerates 80% • Government legislation on emissions 60% standards to continue to support the market 33% 40% 22% • U
Slide 9: Phosphors demand
Phosphors demand themes For personal use only Demand outlook China demand as a % of global demand 100% 82% • Continued phase-out of incandescent bulbs 80% 67% •The challenge to Rare Earths phosphors from 60% LED lighting appears to be accelerating 40% • Technology/IP support required outside China 2
Slide 10: Lynas' business model is to grow the Rare Earths market globally
Lynas’ business model is to grow the Rare Earths market globally For personal use only China demand as a % of global demand Metals for Magnets/Batteries/Special • Rebuild market trust and confidence in Rare Earths Alloys 90% 80% • Build long term alliances 70% 60% • Provide long term visibility on R
Slide 11: Conclusion
Conclusion For personal use only New realities and opportunities • Recent demand trends do not reflect the long term growth potential once stable supply in place • Supply chains will look very different in the future as restructuring continues • Prices will better reflect capital and environmental c
Slide 12: Company overview
Company overview For personal use only Building a fully integrated source of Rare Earths from mine to customers • Primarily involved in the exploration, development, mining and processing of Rare Earth minerals • ASX-listed, market capitalisation of A$1.4bn as of November 8, 2012 • Owns and operates
Slide 13: Malaysian operations – Operating licences
Malaysian operations – Operating licences For personal use only Lynas has received the key approvals and permits necessary to commence operations • Manufacturing licence granted in January 2008 in compliance with the Atomic Energy Licensing Act (1984) and the Environmental Quality Act (1974) • Envir
Slide 14: Lynas has a strong safety track record
Lynas has a strong safety track record For personal use only A safe, sustainable supply chain is a MUST for the industry Western Australia Operations • Externally certified to OHSAS18001:2007 OHS Systems Management • Three Lost Time Injury (“LTI”) incidents in the 4-years of construction/operational
Slide 15: LAMP Phase ready for start-up
LAMP Phase 1 ready for start-up LAMP Phase 2 start-up in Q1 2013 For personal use only ANTICIPATED PHASE 1 ─ 11,000t REO CAPACITY Major Applications VOLUMES (tpa) Ce carbonate 2,600 Autocat, Chemical Catalysis La carbonate 1,350 FCC, NiMH batteries Ce / La carbonate 4,000 Polishing, NiMH batteries N