Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Investor Presentation (February 2007)
14 slides from Arafura Rare Earths's investor presentation, Feb 5, 2007
Slide 1: February 2007 - Managing Director presentation
February 2007 Alistair Stephens Managing Director important Notice This presentation contains certain statements which may constitute “forward-looking statements". Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual vaiues, results, perfo
Slide 2: Arafura Resources — Corporate Structure
Arafura Resources — Corporate Structure *Assumes shareholders approve the Demerger ASX Codes ARU : ARUO Shares on Issue 118.8m Options* (post Demerger revaluation) 17.2 m @ 13c, June '08 Share Price A$0.95 Market Capitalisation A$112 m (1 Feb 07) Cash on hand, post de-merger* A$7.4 m Commonwealth Re
Slide 3: Demerger
er on 5 March 2007 Demerger | Uranium company [ “Joint Ventures : (oD rf i) j ™ Mi Porter gold resource | lron Royalties ae 34,.20002 $1.0 to $1.5mpa from 2008 | XK XX (~ Te ™ {= Te Te TE. es eu S Nickel JV a Mithril Resources XK J X J CG a a) Cl. 7 7 Toy ri i 7 7 D Maj market : Jervois Vanadium Pro
Slide 4: Rare earths — What are their outcomes?
A . Rare earths — What are their outcomes?
Slide 5: Rare Earths - What are they worth?
A Rare Earths - What are they worth? _| Price @ Dec 2006 Product Automotive exhaust catalysis | PGM’s (limited) 7 a, Cerium 99% US$2,000/tonne Glass additive limited NiMH batteri Lithi I Lanthanum 99% | US$2,500/tonne nt amenes Mam ion Fluid cracking catalyst Limited Neodymium 99% US$20,000/tonne |
Slide 6: Rare Earth - Demand & Supply
A _ Rare Earth —- Demand & Supply azaru«s The deficit in production in 2006 has drawn down all world stocks 180,000 15,000 mmm Mt Weld 160,000 f. Change in stock: + 10,000 140,000 {LHS scale) Gia Non-Chinese , Supply REO 5,000 120,000 Unofficial Chinese 100,000 0 production lonic Clays 80,000 5 -5.0
Slide 7: Rare Earths — Supply
Rare Earths — Supply Purchases need an alternate suppl 160,000 140,000 120,000 100,000 - 80,000 60,000 40,000 20,000 0 Australia has the most competitive Resources to bring on line 1990 1995
Slide 8: Rare Earths — Market Controls
4 Rare Earths — Market Controls Regulatory restrictions by China « Imposes 10% export tariff in 2006 ¢ §tops production for environmental non compliance in 2006, 2007 (current) « Reduces export quota :60kt in 2004, 50kt in 2005, 45kt in 2006, 40kt in 2007 Producer conundrum * Current resources are N
Slide 9: The global market is differentiated
A \ The global market is differentiated Beseomere we Asia — China, Japan, Korea Phosphors for electronics Eu, Tb Magnets for motors Nd-Pr-Dy Specialist metals for electronics sm Europe Phosphors for electronics Eu, Tb Catalysts for emission controls cerium USA Fluid cracking catalysts — petroleum la
Slide 10: The value chain is ripe for streamlining
4 \ The value chain is ripe for streamlining i ARAB RIA Beseomere we Current HEV NdFeB Permanent Magnet Supply Chain Magnetic _ RE Concentrates Md Oxide Powder Permanent “S, Hybrid HEV . Magnets Transmission: Manutacture: Aisin Seiwi (JP) Ford Motor Go. (05) indlan Rare Ezeths (1h Founder Rare Earth
Slide 11: Nolans Project
A k Nolans Project Multi commodity deposit Rare Earths, Phosphate, Uranium. ...calcium (chloride) 18.6 mt resource (meets JORC guidelines) Rare Earths Phosphate Uranium Thorium 3.1% REO 14% P.O, 0.47 Ib/t U0, 0.36% ThO, 577,000 t REO 2.6mt P.O, 8.7m lbs U,0, 67,000 t ThO, Resource has extensive upsi
Slide 12: Nolans Simplified Flow sheet
Fa Nolans Simplified Flow sheet Mining Washing to remove clay Acid Pre-leach Insoluble Soluble ~35% of mass ~65% of mass 150,000t @ ~12% REO 275,000t @ ~25% P205 Caustic Cracking Heavy metal extraction Feed grade ~18% Avg SX produces P205 REO Concentrates CaCl residue sales
Slide 13: Nolans cost & revenue projections
rs é -Nolans cost & revenue projections Beseomere we Base Case Upside Case Mining rate (ore) 500ktpa 800 ktpa Production targets REO 10,000 20,000 Phosphoric Acid 60,000 120,000 Calcium Chloride 250,000 500,000 Revenue REO (99% grade @US8/kg) A$100m A$200 Phosphoric acid A$35m A$70 Calcium Chloride
Slide 14: Arafura Objectives
2M Arafura Objectives 2007 “A partner for Nolans” ...and Q1 Exploration results from Vanadium, JV’s in gold Q2 Met test results/scoping study for Nolans Q3 Commence pilot plant, exploration results vanadium, gold, nickel Q4 Pilot plant results 2008 Detailed engineering design 2009 Construction 2010
Arafura Resources — Investor Presentation (February 2007) on 6ix