Northern Minerals Limited · ASX:NTU
Northern Minerals — Diggers & Dealers 2018
40 slides from Northern Minerals's conference presentation, Aug 6, 2018
Slide 1: Diggers & Dealers 2018
For personal use only ASX:NTU AUGUST 6 - 9 2018 DIGGERS & DEALERS 2018
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Northern Minerals Limited (“Northern Minerals” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to thos
Slide 3: Stage 1: Test - In just 12 months
Stage 1: Test 27 July 2017 27 July 2018 In just 12 months: For personal use only • Mining campaign for 3 year pilot plant project completed; • Pilot plant fabricated in China and modules transported to Australia; • Modules assembled on site and installed; • Commissioning of crushing, beneficiation
Slide 4: Rare Earths 2.0 – Strategically and Politically Critical
Rare Earths 2.0 – Strategically and Politically Critical 1992 2011 2018 For personal use only “Saudi Arabia has oil, but China cuts rare earths exports “This executive order will prioritize reducing the nation’s vulnerability to China has rare earths” on South China Sea issues, disruptions in our su
Slide 5: Rare earth distribution based on Wolverine Mineral Resource
Northern Minerals Browns Range For personal use only Rare earth distribution 1 1 Based on Wolverine Mineral Resource 5
Slide 6: Dysprosium
Dysprosium 98% For personal use only 66 Dy Production from China Lighter & More Efficient 162.5 35m 102g 3,500tpa Forecast EV Dysprosium per EV demand for Government sales by 2030 electric vehicle Dy by 2030 mandated change 6
Slide 7: Browns Range - Filling the Dysprosium supply gap
Browns Range - Filling the Dysprosium supply gap For personal use only Even with motor efficiencies, the supply gap is growing and will require more Browns Range scale projects Source: Adamus Intelligence, Northern Minerals 7
Slide 8: Heavy rare earth sustainable pricing
2600 Dysprosium Oxide 99%min China RMB/kg HRE – sustainable pricing 2400 2200 For personal use only 2000 1800 1600 Increased demand from new EV sales coupled with 1400 1200 lower stockpiles and crackdown on illegal mining in 1000 26-Jul-13 26-Jul-14 26-Jul-15 26-Jul-16 26-Jul-17 26-Jul-18 China will
Slide 9: Our Strategy – Building waves of momentum
Our Strategy – Building waves of momentum Stage 4 DOWNSTREAM ENHANCEMENTS Product separation Satellite deposits For personal use only Stage 3 New RE revenue streams DEVELOP FULL PROJECT Economies of scale New customer base Stage 2 Global disruption to supply Stage 1 REFINE PROJECT Optimise flowsheet
Slide 10: Stage 1: Test - Three year pilot plant project
Stage 1: Test For personal use only Three year pilot plant project 10% of full scale capacity Production – from August 2018 Develop, mining, processing & offtake experience 573tpa contained TREO 72ktpa capacity beneficiation plant 3,840tpa capacity hydrometallurgical plant 10
Slide 11: Commissioning of beneficiation and hydromet circuit
In July 2018, Northern Minerals commenced commissioning of beneficiation and hydromet circuit For personal use only In September 2018, we will commence a new supply of heavy rare earths to the global market
Slide 12: Pilot Plant Flowsheet
Stage 1: Test For personal use only Pilot Plant Flowsheet* MINING STOCKPILES CRUSHING MILL & MAG SEP Components and equipment unloaded in Darwin RE CARBONATE WATER LEACH SULPHATION BAKE FLOT & TAILS * The flowsheet is NTU IP and design based on testwork undertaken in Australia 12
Slide 13: Pilot Plant offtake committed
Stage 1: Test Pilot Plant offtake committed • 100% of Browns Range Pilot Plant production to be For personal use only purchased by Lianyugang Zeyu New Materials Sales Co Ltd Direct shipping route from (JFMAG), a 51% owned subsidiary of Guangdong Rare Wyndham or Darwin to Earths Group. Lianyungang, C
Slide 14: Stage 2: Refine - Enhancement projects underway
Stage 2: Refine Enhancement projects underway Mining For personal use only • Investigating steeper pit walls, resulting in more ore and less waste; Processing • Opportunity to increase grade through ore sorting technology. Engineering study & testwork underway; Downstream • Investigating licensing s
Slide 15: Stage 3: Full Scale - Develop full project
Stage 3: Full Scale For personal use only Develop full project 300,000kg Dysprosium production per annum 3,000,000kg TREO per annum Significant dysprosium supplier Initial 11 year life with significant upside through exploration 15
Slide 16: Full Scale - Blue sky potential
Stage 3: Full Scale Blue sky potential The Browns Range dome is a massive geological For personal use only feature covering 1,500km2 and stretching 60km x 30km most of which hasn’t been effectively explored JORC Resource supporting an 11 year full scale operation Exploration target to add additional
Slide 17: Full Scale Exploration Update - Dazzler
Stage 3: Full Scale Exploration Update - Dazzler Estimated Width From To Average pXRF Yttrium Hole ID TREO (m)* (m) (m) (ppm) For personal use only by Correlation BRDR0008 4 33 37 1,000 0.5% BRDR0010 19 25 44 37000 8% BRDR0011 9 41 50 3000 0.8% BRDR0012 6 35 41 1000 0.4% BRDR0014 21 24 45 7000 2% BR
Slide 18: Beyond Browns Range
Stage 3: Full Scale For personal use only Beyond Browns Range Rock chip samples from the Boulder Ridge project confirm high- Rock chip samples up to 42% TREO with approximately 95% Heavy REO grade Heavy Rare Earths (HRE) Preliminary metallurgical tests indicate excellent recovery rates (>90%) Best r
Slide 19: Stage 4: Downstream - Investigating separation technologies
Stage 4: Downstream For personal use only Investigating separation technologies Strong support received from the WA Government for downstream processing within the state 19
Slide 20: Key personnel and partners
Corporate For personal use only Key personnel and partners Key Site Personnel: Eben Van Rooyen – Resident Manager Tony Hadley – General Manager Louis de Klerk – R&D Manager George Bauk Managing Robin Jones Director/CEO Chief Operating Officer Bin Cai Executive Officer Mark Tory Robin Wilson Chief Fi
Slide 21: Corporate Overview
Corporate For personal use only Corporate Overview Northern Minerals Share Price Performance 0.16 9.00 0.14 8.00 7.00 Share Price (A$/share) 0.12 6.00 Volume (m) 0.10 5.00 0.08 4.00 0.06 3.00 0.04 2.00 0.02 1.00 0.00 0.00 31-Jul-17 31-Oct-17 31-Jan-18 30-Apr-18 31-Jul-18 21
Slide 22: 2018 – Delivering on potential
Corporate For personal use only 2018 – Delivering on potential 22
Slide 23: In conclusion
Corporate For personal use only In conclusion • Pilot plant production to commence in August 2018 • Three year project to demonstrate and assess economic and technical feasibility of full scale operation • Process commenced on separation • Browns Range on track to be a globally significant supplier
Slide 24: Delivering critical technology metals to the EV evolution
For personal use only Delivering critical technology metals to the EV evolution ASX:NTU
Slide 25: Appendices
For personal use only APPENDICES
Slide 26: Rare Earths 2.0 - EVs not just a lithium story!
Rare Earths 2.0 - EVs not just a lithium story! Li Lithium Al Aluminium For personal use only Co Cobalt Mg Magnesium Copper Cu C Graphite Ni Nickel Dysprosium Dy Fe Mn Mo V Neodymium Nd 26
Slide 27: Government legislated phase out of internal combustion engine vehicles
Government legislated phase out of internal combustion engine vehicles For personal use only Question: Who is going to buy an internal combustion engine vehicle in the years before the ban??? 2020 2025 2030 2035 2040 27
Slide 28: Test: Operational readiness
Stage 1: Test Operational readiness • For personal use only • • • •
Slide 29: Refine the project
Stage 2: Refine For personal use only Refine the project Reduce mining cost - modify mining method Boost production – increase head grade Develop premium product – yttrium rejection Funding plan for progressing initiatives 29
Slide 30: Downstream Opportunities
Stage 4: Downstream For personal use only Downstream Opportunities Downstream separation of heavy rare earth elements Production of dysprosium oxide and terbium oxide Wider potential customer base Additional value capture Funded plan to investigate downstream opportunities 30
Slide 31: Mineral Resources
For personal use only Mineral Resources 1 – Rounding may cause some computational discrepancies (TREO (metal) tonnes estimated from Mt x TREO%) Mineral resources as per NTU announcement 2 March 2015 in relation to increased reserves. 31
Slide 32: Ore Reserves
For personal use only Ore Reserves Ore reserves as per NTU announcement 2 March 2015 in relation to increased reserves. 32
Slide 33: Project Development Schedule
Stage 1: Test Project Development Schedule Apr ‘17 Jun ‘17 Sep ‘17 Dec ‘17 Mar ‘18 Jun ‘18 Sep ‘18 For personal use only Final Investment Decision Mining completed, ore stockpiled Fabrication Plant modules complete in China transported to Australia Commencement of Testing & Site preparation module i
Slide 34: Three year pilot plant project
Stage 1: Test For personal use only Three year pilot plant project Pilot Plant Site May 2017
Slide 35: Pilot plant: targeted production
Stage 1: Test For personal use only Pilot plant: targeted production Mixed RE carbonate (REC) produced Product specification available for REC REC samples validated by several downstream separators REC suitable for solvent extraction separation Low thorium and uranium levels First shipment planned f
Slide 36: Full Scale Exploration Update - Iceman
Stage 3: Full Scale Exploration Update - Iceman Estimated Width From Average pXRF TREO For personal use only Hole ID To (m) (m)* (m) Yttrium ppm by Correlation BRIR0002 12 13 25 18,000 4% BRIR0003 8 27 35 2,000 0.6% BRIR0004 7 26 33 12,000 3% BRIR0007 4 42 46 5,000 1% (TREO – Total Rare Earth Oxides
Slide 37: EV growth driven by consumer demand and Government restrictions
EV growth driven by consumer demand and Government restrictions Megafactories Capacity (GWh) For personal use only 300 250 200 Battery growth 150 is a good proxy 100 for EV growth 50 0 2013 2014 2015 2016 2017 2018 2019 2020 Source: DB Current Capacity Tesla Other 37
Slide 38: Browns Range – An Eight Year $180m Journey
Browns Range – An Eight Year $180m Journey For personal use only 38
Slide 39: NTU Board
NTU Board Colin McCavana - Non-executive Chairman (appointed 2006) Mr McCavana has more than 35 years of management experience worldwide in the For personal use only earthworks, construction and mining industries. George Bauk - Managing Director / CEO (appointed 2010) George is an experienced execut
Slide 40: The Northern Minerals SPIRIT
For personal use only The Northern Minerals SPIRIT 40