Lynas Rare Earths Limited · ASX:LYC
Lynas Rare Earths — Shareholder Meeting (November 2009)
27 slides from Lynas Rare Earths's shareholder meeting presentation, Nov 26, 2009
Slide 1: Annual General Meeting November 2009
Annual General Meeting November 2009 For personal use only
Slide 2: Disclaimer
Disclaimer For personal use only ► The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe
Slide 3: Lynas Corporation Annual General Meeting '09
Lynas Corporation Annual General Meeting ‘09 For personal use only ► Year in Review Capital structure Construction programme ► Supply and Demand within the Rare Earths market ► Our position as an emerging producer -3-
Slide 4: The initial project finance structure set up in 2008 was typical for a junior mining company
The initial project finance structure set up in 2008 was typical for a junior mining company For personal use only Senior Debt Convertible Note Equity US$105M US$95M A$170M Announced July 2007 Announced November 2007 April 2008 Fully subscribed Feb 2008 A$95M HVB At $1.26 per share Amount:
Slide 5: In January a bondholder dispute occurred and the construction programme was suspended
In January a bondholder dispute occurred and the construction programme was suspended For personal use only ► The bond holders claimed non compliance to conditions required to release fund from the escrow account. ► With the GFC in full swing the bond holders had the motivation to prevent US$95M fro
Slide 6: Lynas looked for an industrial partner for alternative finance
Lynas looked for an industrial partner for alternative finance For personal use only ► Industrial partner sought as financial markets were “closed” Japanese interest but no commitment European interest but no commitment Chinese interest, and a thorough due diligence undertaken by China Nonferr
Slide 7: $450M recapitalisation now completed
$450M recapitalisation now completed For personal use only ► Following the termination of the CNMC deal, Lynas entered into discussions with JP Morgan to raise funds via a fully underwritten unconditional placement, a 1-for-1 non-renounceable entitlement offer and a conditional placement ► A$450 mil
Slide 8: Summary of estimated capital and production costs to positive cash flow for Phase 1
Summary of estimated capital and production costs to positive cash flow for Phase 1 For personal use only Construction & Other Capital Costs Total A$mm Capex spent to Future capex date A$mm A$mm WA Concentration Plant $59.5 $13.6 $45.9 Gebeng Cracker & Separator Plant 233.5 40.9 192.6 Engineering &
Slide 9: The Mount Weld Rare Earths project latest developments
The Mount Weld Rare Earths project latest developments For personal use only Mount Weld, Western Australia The Resources Mining operations Concentration Plant – Mount Weld, WA Phase 1: 33,000 tpa 40% REO concentrate Phase 2: 66,000 tpa 40% REO concentrate Advanced Materials Plant – Malaysia
Slide 10: Mount Weld mine site showing ore type and REO grade of stockpiles
Mount Weld mine site showing ore type and REO grade of stockpiles For personal use only Southern Zone Offices Overburden Li Stockpiles 8% Li 13% Li Cz 17% 26% Cz 15% Cz 13% Cz 21% Cz 20% Conc. Top soil Plant 1.5km -10-
Slide 11: Mt Weld Rare Earths initial mining campaign complete, loss time injury free and on budget
Mt Weld Rare Earths initial mining campaign complete, loss time injury free and on budget For personal use only Current pit floor is 51 meters below surface Ultimate pit floor is another 36 meters -11-
Slide 12: 773,000 tonnes stockpiled on site, segregated by grade
773,000 tonnes stockpiled on site, segregated by grade. The ore is soft and friable For personal use only -12-
Slide 13: Engineering design and all approvals complete for the Concentration Plant at Mt Weld
Engineering design and all approvals complete for the Concentration Plant at Mt Weld For personal use only ► Engineering Design complete ► All Approvals in place ► All major equipment procured and stored in Australia Mount Weld Concentration Plant site – Ball Mill foundations -13-
Slide 14: Construction contracts re-initiated for the Concentration Plant
Construction contracts re-initiated for the Concentration Plant For personal use only ► Contract Status on-site Bulk earth works Downer EDI Complete Construction contract Abesque Engineering Re-initiated Steam generation RCR Energy Systems Complete Power station Kalgoorlie Power Systems Re-i
Slide 15: Substantial civil works completed including water treatment ponds
Substantial civil works completed including water treatment ponds For personal use only Process water treatment pond complete Mount Weld bore water Run off water treatment pond complete -15-
Slide 16: Containers of Rare Earths concentrate will be trucked to Fremantle for shipping to Malaysia
Containers of Rare Earths concentrate will be trucked to Fremantle for shipping to Malaysia For personal use only GEBENG GEBENG GEBENG GEBENG Mount Weld to Fremantle = 1,000km -16-
Slide 17: Lynas has commenced construction of the processing plant in the Gebeng Industrial Area
Lynas has commenced construction of the processing plant in the Gebeng Industrial Area For personal use only Satellite Photo of Gebeng Industrial Area ► Strong Federal, State, and Local Government support Lynas granted “strategic pioneer status” with 12 year tax free period Gebeng Industrial Area
Slide 18: Malaysia site construction: Piling for post treatment workshop
LYNAS ADVANCED Malaysia site construction: Piling for post MATERIALS treatmentPLANT workshop For personal use only -18-
Slide 19: Malaysia site: Advanced Material Plant Status
Malaysia site Malaysian construction: Advanced MaterialPiling Plantfor post Status treatment workshop ► Engineering Design to be completed For personal use only United Group engaged as the Engineering Contractor ► All Approvals in place ► Contract Status on-site Bulk earth works Substantially co
Slide 20: Construction activity in Malaysia
Construction activity in Malaysia For personal use only Building construction has commenced Lynas-constructed stormwater detention pond -20-
Slide 21: Industry analysts forecast 180,000t demand by 2014 with a focus on green technologies
Industry analysts forecast 180,000t demand by 2014 with a focus on green technologies For personal use only Hybrid Vehicle A key demand driver for Rare Earths Toyota and Honda total target over 1 million in 2010 (NiMH) Now 30 hybrids available from over a dozen manufacturers Wind Turbines Sw
Slide 22: The realities of supply are expected to result in a shortfall
The realities of supply are expected to result in a shortfall For personal use only Rare Earths Supply Sources Chinese Policy Issues (reported capacity, REO) Baotou 50,000t 2009 Production Quota is 82,320t Relocation of iron ore mining Baotou and Sichuan: 72,300t Tailing facilities near ca
Slide 23: Mineral scarcity – it not about size of resource, it is about production!
Mineral scarcity – it not about size of resource, it is about production! For personal use only Shortages occur when supply as a function of time can no longer keep up with demand as a function of time The ultimate recoverable resource in the ground is irrelevant in this respect We have reache
Slide 24: Required characteristics of new Rare Earths supply sources
Required characteristics of new Rare Earths supply sources For personal use only Ability to Concentrate with a low cost (physical) processing route Amenable Mineralogy Sufficient grade REO distribution Environmentally Sound Beach sand monazite banned from processing in Australia, Europe,
Slide 25: The Lynas plan
The Lynas plan For personal use only Multiple Multiplemine mine sources for sources for concentrate concentrate supplies supplies Mount Weld Malawi Industrial IndustrialInfrastructure Infrastructure Chemical Gebeng Industrial Estate Chemicalindustrial industrialland land Gas, East Coast Malaysi
Slide 26: In Summary
In Summary For personal use only The Company has raised funds for the completion of Phase 1 for 11,000t REO The Rare Earths project has recommenced and initial production currently anticipated for first half of 2011 Infrastructure and utilities have been scaled for 22,000t REO and we expect to
Slide 27: Note: Competent Person statement
NOTE For personal use only The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Brendan Shand, who is a member of The Australasian Institute of Mining and Metallurgy. Brendan Shand is an employee of Lynas Corporatio
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