Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Investor Presentation (August 2018)
26 slides from Arafura Rare Earths's investor presentation, Aug 30, 2018
Slide 1: Arafura Resources Limited August 2018 Investor Presentation
For personal use only Not for release or distribution in the United States of America Arafura Resources Limited Up and coming supplier of NdPr to permanent magnets used in the growing clean energy industry August 2018 Investor Presentation
Slide 2: Important Notice - Disclaimer
Not for release or distribution in the United States of America Important Notice - Disclaimer 2 For personal use only This presentation has been prepared by Arafura Resources Limited (Arafura, Arafura Resources or the Company) and is of a summary form only and therefore contains general background i
Slide 3: Company Snapshot
Not for release or distribution in the United States of America Company Snapshot 3 For personal use only • ASX listed company developing the Nolans Rare Earths Project in the ASX Code ARU Northern Territory, a long-life mining and chemical processing Share Price (24-Aug-18) A$0.081 operation Issued
Slide 4: NdPr Market Update
For personal use only 4 NdPr Market Update Arafura Resources Limited (ASX:ARU) August 2018
Slide 5: Overview: Secure Supplier of NdPr to Permanent Magnets Used in Clean Energy
Not for release or distribution in the United States of America Overview 5 For personal use only Secure Supplier of NdPr to Permanent Magnets Used in Clean Energy • NdPr Oxide is a key component in the manufacture of high-strength NdFeB permanent magnets used in electric vehicles (EVs), wind turbine
Slide 6: NdFeB Magnet Vital To Automotive Market
Not for release or distribution in the United States of America NdFeB Magnet Vital To Automotive Market 6 For personal use only 25,000 tonnes NdFeB magnets used in 2016 automotive market growing at 9% CAGR (total market 135,000 tonnes) EVs and hybrids represent additional growth through Permanent Ma
Slide 7: Emerging Demand Dynamic – China 2025 Strategy
Not for release or distribution in the United States of America Emerging Demand Dynamic – China 2025 Strategy 7 For personal use only Arafura is of the opinion that: • China’s domestic NdPr consumption will increase by over 30% in the next 5 years as it pursues clean energy objectives and global lea
Slide 8: Looming Supply Deficit
Not for release or distribution in the United States of America Looming Supply Deficit 8 For personal use only • Assuming no additional production: • 4,000 tonnes p.a. required to meet growing demand • EV sales 1.2 million in 2017 growing to 1.6 million in 2018; estimated global sales of 25 million
Slide 9: Non-China Supply Peer Comparison
Not for release or distribution in the United States of America Non-China Supply Peer Comparison 9 For personal use only • Non-China NdPr supply will be constrained by the sector’s historical inability to attract capital • Nolans is one of the world’s largest and more advanced undeveloped NdPr proje
Slide 10: Nolans Project
For personal use only Not for release or distribution in the United States of America 10 Nolans Project Arafura Resources Limited (ASX:ARU) August 2018
Slide 11: Project Configuration
Not for release or distribution in the United States of America Project Configuration 11 For personal use only Arafura Resources Limited (ASX:ARU) August 2018
Slide 12: Close To Key Infrastructure
Not for release or distribution in the United States of America Close To Key Infrastructure 12 For personal use only • Stuart Highway – 10 km east • Alice Springs railyard, airport and other services – 135 km south • Amadeus natural gas pipeline – adjacent to project site • Water supply – 30 km sout
Slide 13: Flowsheet Piloting
Not for release or distribution in the United States of America Flowsheet Piloting 13 For personal use only Beneficiation Pilot Plant Bulk Pre-Leach Pilot Plant • Program reduces execution risk by addressing all key engineering and operational considerations prior to commissioning of the commercial
Slide 14: Definitive Feasibility Study
Not for release or distribution in the United States of America Definitive Feasibility Study 14 For personal use only • Process design criteria, PFDs and mechanical equipment list issued for use for the DFS • Underway Director appointment: Mark Southey, • Layouts of process plant previously WorleyPa
Slide 15: Project Metrics
Not for release or distribution in the United States of America Project Metrics 15 For personal use only • Ultra competitive operating costs US$6.23/kg TREO or US$24.38/kg NdPr oxide – lowest amongst peers • Phosphoric acid recovered to reduce commodity risk • High rare earths recovery • NdPr oxide
Slide 16: Project Funding Strategy
Not for release or distribution in the United States of America Project Funding Strategy 16 For personal use only • Advancement of environmental approval critical enabler for engagement with offtakers, financiers and Export Credit Agencies (ECA) • ECAs are key to providing government-backed funding
Slide 17: Timeline & Targets
Not for release or distribution in the United States of America Timeline & Targets 17 For personal use only 2018 targets include: • Advancing NdPr offtake arrangements • Reporting DFS results • Engaging with strategic partners for capital equipment procurement and project funding Arafura Resources L
Slide 18: Summary
For personal use only 18 Summary Arafura Resources Limited (ASX:ARU) August 2018
Slide 19: Why Arafura?
Not for release or distribution in the United States of America Why Arafura? 19 For personal use only Attribute Arafura High-growth and high-value NdFeB permanent magnet focus ✓ NdPr production planned to coincide with projected supply gap ✓ ✓ Low production cost to remain competitive in a cyclical
Slide 20: Appendices
For personal use only 20 Appendices Arafura Resources Limited (ASX:ARU) August 2018
Slide 21: Appendix A: Mineral Resources
Not for release or distribution in the United States of America Appendix A: Mineral Resources 21 For personal use only RESOURCES TONNES (m) RARE EARTHS TREO % PHOSPHATE P2O5 % NdPr Enrichment % Measured 4.9 3.2 13 26.1 Indicated 30 2.7 12 26.4 Inferred 21 2.3 10 26.5 TOTAL 56 2.6 11 26.4 1% TREO cut
Slide 22: Appendix B: Process Flowsheet
Not for release or distribution in the United States of America Appendix B: Process Flowsheet 22 For personal use only Arafura Resources Limited (ASX:ARU) August 2018
Slide 23: Appendix C: Established Markets & Growing Applications
Not for release or distribution in the United States of America Appendix C: Established Markets & Growing Applications 23 For personal use only Source: Adamas Intelligence, Arnold Magnetic Technologies, Japanese industry participants, Roskill Arafura Resources Limited (ASX:ARU) August 2018
Slide 24: Appendix D: Peer Comparison
Not for release or distribution in the United States of America Appendix D: Peer Comparison 24 For personal use only Notes and assumptions used in the preparation of the Peer ASX-Listed Peer Group Companies Comparison Project Code Company Name Project Location Interest • Exchange rate of AUD1 = USD
Slide 25: Appendix F: Board
Not for release or distribution in the United States of America Appendix F: Board 25 For personal use only IAN KOWALICK TERRY GROSE NON-EXECUTIVE CHAIRMAN NON-EXECUTIVE DIRECTOR Ian Kowalick has qualifications in science, engineering, Terry Grose has a strong commercial economics, and finance. From
Slide 26: Appendix G: Management
Not for release or distribution in the United States of America Appendix G: Management 26 For personal use only PETER SHERRINGTON CHIEF FINANCIAL OFFICER & COMPANY SECRETARY RICHARD BRESCIANINI He commenced employment with Arafura in 2008 as GENERAL MANAGER EXPLORATION & Commercial Manager and was a
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