Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Shareholder Meeting (September 2009)
23 slides from Arafura Rare Earths's shareholder meeting presentation, Sep 17, 2009
Slide 1: Arafura Resources Ltd EGM Shareholder Meeting
Arafura Resources Ltd EGM Shareholder Meeting 17 September 2009
Slide 2: Mr. Ian Laurance AM, Chairman
Mr. Ian Laurance AM Chairman Arafura Resources Ltd
Slide 3: Arafura Resources Ltd
Arafura Resources Ltd 17 September 2009
Slide 4: Arafura corporate structure
Arafura corporate structure As at 17 September 2009 Shares on issue 259.2 million Market capitalisation (ASX:ARU closing price @ 16 Sept 2009) @ A$1.20 = ~A$310M Top shareholders: ANZ Nominees 36.6% ECE 24.9% Board & management 3.6% Citicorp Nominees 2.1%
Slide 5: East China Mineral Exploration and Development Bureau
East China Mineral Exploration and Development Bureau Mr. Shao Yi Director General
Slide 6: Nolans Project Update
Mr. Alistair Stephens Managing Director Arafura Resources Ltd Nolans Project Update
Slide 7: Disclaimer
Disclaimer 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 values, results, performance achievements to differ materiall
Slide 8: Rare earth applications
ee “@=s Rare earth applications nesounces Ure ENERGY PRODUCTION = Petroleum [) Pewteumesning | ENERGY REDUCTION [ uveicersincinss | Filters in Glass ENERGY EFFICIENCY LIFESTYLE New Generation Colour Screen Vehicles LCDs/PDPs La NdgSm Eug Tbs Y High-powered Electric Motors Nd Jf Dy Jt Tb 9 New Genera
Slide 9: Rare earth demand will grow strongly
Rare earth demand will grow strongly Source: BCC Research, June 2009 – ‘Rare Earths worldwide market, applications, technologies’
Slide 10: Rare earth prices will rise with demand
Rare earth prices will rise with demand Source: BCC 2009 REO report. Forecasts 20-30% CAGR increase in REO prices over the next five years (pp92).
Slide 11: Phosphate revenue will be higher
Phosphate revenue will be higher Source: CRU British Sulphur 2009 Higher recoveries for better quality phosphate will increase revenue Expansion into technical grade phosphate opens new opportunities
Slide 12: Outlook for Rare Earths / Phosphate
Outlook for Rare Earths / Phosphate Strong growth in demand is forecast Prices will strengthen The demand forecast means Nolans (and other new projects) must come on line to meet this demand China will need to increase output And there still may be a shortage Nolans rare earths mixture
Slide 13: Environmental & social benefits – Nolans product mix
Environmental & social benefits – Nolans product mix REO Production Component End product Potential environmental savings Reduces NOX which aggravates CeO2 3,500t Auto catalysts 25 million cars respiratory problems, causes acid rain and damages aquatic environments. Ultra violet Architectural CeO2 1
Slide 14: Nolans Project
Nolans Project World-class, 100%-owned Rare earths-phosphate-uranium project Easy access to available infrastructure Strategic investment partner (ECE) with FIRB approval for up to 25% strategic equity
Slide 15: Nolans resource
Nolans resource Current total resources of 30.3 million tonnes Estimated mine life 20+ years Mineralisation present over 150 hectares and exposed at the surface Resource contains 848,000 tonnes of rare earths (REO) 3.9 million tonnes of phosphate (P2O5) 13.3 million pounds of uranium (
Slide 16: Nolans Project flowsheet
A Nolans Project flowsheet Chemical Separation Rare Earth Uranium Phosphoric ie Concentrate Oxide Acid (By-Product)
Slide 17: Pilot plant success
Pilot plant success Feasible product – successful robust extraction process developed in conjunction with ANSTO High recovery rates Pilot plant for technical grade phosphoric acid has been completed with improved indicative results for both Phosphoric acid pilot plant quality and recovery Calciu
Slide 18: Recoveries have improved
Recoveries have improved BFS recovery Previous estimate HMS Concentration 90% 90% Rare Earths 86% 80% (recovery to carbonate) Phosphoric Acid 85% 80% (technical grade) Uranium 80% 80% Nolans Project Production p.a. Price rare earth carbonate (tonnes) (June 09) Rare Earths REO 20,000 US$10/kg Phospho
Slide 19: The feasibility study has identified
The feasibility study has identified 1. Lower operating costs Hydrochloric acid consumption down 30% (& more maybe saved) Sulphuric acid consumption down 20% Have replaced 50% of caustic with lime, reducing costs 2. Lower capital costs Plant can be modularised, shipped and then assembled in Austra
Slide 20: Summary of achievements in 2009
Summary of achievements in 2009 Improved recoveries for rare earths and phosphoric acid Improved phosphoric acid quality to technical grade Lower operating costs quantified – more identified Lower capital costs identified – more work to be undertaken Chemical plant engineering study on tar
Slide 21: Current scope of works
es A Current scope of works Mine site design Chemical plant To commence asap On track Mine pit & waste dump design Chemical supply logistics Concentration plant Detailed leach plant Haulage roads Detailed rare earths plant Environmental studies + Detailed phosphoric acid plant « Offices and faciliti
Slide 22: Project timeline
Project timeline 2010 2011 2012 Mine design + site plan Mine EIS Chemical Plant design + location study Chemical Plant EIS Project financing Construction
Slide 23: Outlook – with ECE funding
e—_.- a= Outlook — with ECE funding Complete Bankable Feasibility Study Mine site feasibility can commence Determine chemical plant location Environmental works to commence Technical studies completed in 2010 2010 and 2011 dedicated to project funding n
Arafura Resources — Shareholder Meeting (September 2009) on 6ix