Slide 1: Goschen Project DFS Refresh - Phases 1 and 1A
Goschen Project DFS Refresh - Phases 1 and 1A Securing critical and rare earth minerals for future technologies March 2023 ASX:VHM Acknowledgement of Country VHM acknowledges the Australian Aboriginal and Torres Strait Islander peoples as the first inhabitants of the nation and the traditional custo
Slide 2: Disclaimer and forward-looking statements
Disclaimer and forward-looking statements Important Information Forward looking statements are based on numerous assumptions regarding VHM Limited’s present and future business strategies and the environment in which VHM Limited will operate in the future. Among the important factors that could caus
Slide 3: VHM Limited (ASX:VHM) overview
VHM Limited (ASX:VHM) overview Corporate snapshot1 Established in 2014 as an exploration company to support development of the world class Goschen Project Listed in January 2023 (ASX:VHM) Owns 100% of the Goschen Project, the advanced pre- production rare earth and mineral sands project located in I
Slide 4: Investment highlights
Investment highlights A globally significant rare Strategic asset in a stable, established earths and mineral sands mining jurisdiction project Strong early funding support ▪ Granted “Major Project Status” by the Australian Government given its national significance ▪ Expedited project development a
Slide 5: Goschen Project DFS Refresh
Goschen Project DFS Refresh
Slide 6: Project highlights
Project highlights The DFS Refresh1 on Phases 1 and 1A demonstrates the Goschen Project economics to be compelling A$57 A$500 million Opex $/t Ore Capex 10-year average nominal Ancillary pre-production mining operating cost start-up works A$106m A$1.5 billion 44% NPV IRR 10-year average nominal pric
Slide 7: Project highlights
Project highlights The DFS Refresh on Phases 1 and 1A demonstrates the Goschen Project economics to be compelling 5Mtpa 9.4ktpa >20 years REMC Conventional open cut Target annual production rates for mining methods rare earth mineral concentrate excavation, load, and (REMC) haul 8.5ktpa 134.5ktpa MR
Slide 8: Goschen Project overview: revenue, operating cost and margin
Goschen Project overview Revenue, operating cost and margin1 ▪ Substantial revenues generated A$560 million pa for Phases 1 and 1A averaged over initial 10 years. ▪ Relative contributions of the rare earths and minerals sands product revenues of 76% and 24% respectively. ▪ The considerable EBITDA ma
Slide 9: Goschen Project overview: estimated cash flow
Goschen Project overview Estimated cash flow ▪ EBITDAX for Phase 1 and Phase Goschen Project pre-tax free cash flow for combined Phase 1 and 1A 1A for the initial 10 years of production is approximately A$291 million. ▪ FCF for Phase 1 and Phase 1A averages A$270 million per year for the initial 10
Slide 10: Sensitivity analysis – Phase 1 and Phase 1A
Goschen Project overview Sensitivity analysis – Phase 1 and Phase 1A ▪ Sensitivity analysis of the Goschen Project economics have been carried out considering the forecast product prices, AUD/USD foreign exchange rates, mining, and processing opex and capex costs. ▪ The Project’s forecast NPV is sen
Slide 11: Phase 1 and Phase 1A process flowsheet
Goschen Project overview Phase 1 and Phase 1A (Hydromet Circuit) process flowsheet Phase 1 ▪ High recoveries likely at Goschen Mine: Continuous improvements achieved through testwork has delivered high recoveries of valuable rare earth, zircon and titanium products ▪ Final products: Zircon and titan
Slide 12: Definitive Feasibility Study
Goschen Project overview Definitive Feasibility Study ▪ Significant exploration to date delivers a JORC Resource and substantial Ore Reserve +1,000 holes for 39km drilled to date at Goschen. ▪ Well understood geology and mineralogy Goschen ore consists of weathered sands enriched in REE-bearing mine
Slide 13: Goschen Project Highlights
Goschen Project Highlights
Slide 14: Accelerating towards production in 2025
Accelerating towards production in 2025 Advancing FEED studies and testwork (Phase 1) Approvals Goschen Pilot scale testwork for Construction (Phase 1 and 1A) First production Hydromet Circuit Public exhibition commences on Final Investment Decision Goschen (Phase 1A) of EES for Goschen (Phase 1) (P
Slide 15: Staged mine development
Staged mine development Clear pathway to development Current development plan Phase 3 AREM Phase 1 Base Project Phase 1A Hydromet Phase 2 MSP & HAL (Rare Earth Refinery) ▪ Near-term production ▪ Additional Hydromet Circuit with a ▪ Additional MSP, HAL and chrome ▪ National strategic value throughput
Slide 16: Offtake strategy considerations
Offtake strategy considerations VHM seeks to achieve the ultimate objective of its offtake strategy by aligning with its phased production development Near-term Mid-term Long-term Secure an offtake partner: Expand offtake into European and Complete phased production US markets. development, includin
Slide 17: Offtake Memorandum of Understanding
Offtake Memorandum of Understanding Confirms viability of Goschen Project’s product Key offtake terms About Shenghe Resources ▪ Memorandum of Understanding (MOU) relates to a binding ▪ Shenghe is a world-class developer, producer, and supplier of dual product take or pay offtake agreement of REMC an
Slide 18: Approvals and permitting indicative timetable
Approvals and permitting indicative timetable AECOM appointed for their permitting expertise and credentials 2021 2022 2023 2024 Re-submission of referral based on reduced mining area footprint Work Plan and of EPBC Act and EE Act Public review of secondary approvals Referrals EES assessed Re-Scopin
Slide 19: Why rare earths
Why rare earths Rare Earth Elements are the cornerstone for Clean Mobility and energy efficiency 87% of Goschen rare earth minerals basket value contains Electric vehicles will drive over 40% of Global Magnet Earth Oxide key rare earths - dysprosium, demands by 2035. neodymium, praseodymium and terb
Slide 20: Rare earth and mineral sands exploration upside
Rare earth and mineral sands exploration upside Cannie and Nowie deposits are analogous to Goschen Cannie Project and Nowie Prospects ▪ Significant number of historic drill holes indicates Cannie is of a similar scale sheet deposit to Goschen deposit ▪ Historic drilling indicates zircon and rare ear
Slide 21: Summary and near-term priorities
Summary and near-term priorities Exceptional economics underpinned by low CAPEX and Near-term Priorities high value commodity mix ▪ Detailed engineering for development and Engineering and implementation planning and execution (Phase 1A) Advanced clear pathway to targeted first production in testwor
Slide 22: Appendix: JORC Tables
Appendix: JORC Tables
Slide 23: Company Mineral Resources
Company Mineral Resources 629Mt Mineral Resource Estimate (4)The Mineral Resource estimate was prepared and first disclosed under the JORC Code (2012) in the Prospectus dated 21 November 2022 as supplemented by the supplementary prospectus dated 5 December 2022, lodged with ASX on 5 January 2023 23
Slide 24: Company Ore Reserves
Company Ore Reserves 198.7Mt Ore Reserve Note: (1) The Company Ore Reserve was prepared and first disclosed under the JORC Code (2012) in the Company ASX Announcement on 28 March 2023. 24
Slide 25: Goschen Project DFS Ore Reserves
Goschen Project DFS Ore Reserves Subset of global Company Ore Reserves 98.8Mt Note: (1) The Goschen Project DFS Ore Reserve was prepared and first disclosed under the JORC Code (2012) in the Company ASX Announcement on 28 March 2023. 25
Slide 26: vhmltd.com.au
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