Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Bell Potter Emerging Leaders Conference 2022
29 slides from Arafura Rare Earths's conference presentation, Sep 7, 2022
Slide 1: Bell Potter Emerging Leaders Conference ASX Announcement
ASX ANNOUNCEMENT BELL POTTER- EMERGING LEADERS CONFERENCE 7 September 2022 For personal use only Arafura Resources Limited (ASX:ARU) (“Arafura” or the “Company”) is pleased to attach a copy of its presentation delivered by Chief Financial Officer, Mr Peter Sherrington, at the Bell Potter -Emerging L
Slide 2: NdPr Essential for Energy Transition
7/09/2022 NdPr Essential for Energy Transition For personal use only Bell Potter – Emerging Leaders September 2022 (ASX:ARU) 1
Slide 3: Disclaimer
7/09/2022 Disclaimer 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 information which may not be complete. It should be read in conjunction with
Slide 4: Nolans Project Introduction
7/09/2022 Nolans Project For personal use only Introduction (ASX:ARU) 3
Slide 5: Nolans Project: the only NdPr focused project in Australia
7/09/2022 The Nolans Project contains Nolans Project all the natural Rare Earths is the only NdPr focused project in Australia but is particularly enriched For personal use only that plans to in the ‘Magnet Feed’ Rare Earths NdPr mine and process ore to oxide at a single site. 60 59 Nd Pr NEODYMIUM
Slide 6: Key Facts
Key Facts 7/09/2022 ➔ Nolans aims to supply ~5% of global demand for NdPr oxide Advanced manufacturing onsite ➔ Close to existing key infrastructure For personal use only – Ore to oxide at a single site – ➔ Key approvals in place: Mining Licence, Environmental and Native Title Agreement (ASX:ARU) 5
Slide 7: Project Development
7/09/2022 Project Development For personal use only FEED nearing completion allowing engagement with constructors and placing vendor data orders for long leads and critical equipment. Long Lead FEED Early Works Construction Construction Commissioning Procurement Works Activity 2022 2023 2024 2025 J
Slide 8: Experienced Board
7/09/2022 Experienced Board For personal use only Mark Southey Chris Tonkin Quansheng Zhang Cathy Moises Darryl Cuzzubbo NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR NOMINEE DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR Mark Southey has previously held Chris Tonkin has over 35 years’ Quans
Slide 9: Experienced Management
7/09/2022 Experienced Management For personal use only Gavin Lockyer Peter Sherrington Stewart Watkins Lloyd Kaiser MANAGING CHIEF FINANCIAL GENERAL MANAGER GENERAL MANAGER DIRECTOR OFFICER PROJECTS SALES & MARKETING Gavin Lockyer’s diverse, global Peter commenced employment Stewart has over 30 year
Slide 10: Our Technical Team
7/09/2022 Our Technical Team For personal use only = Dr Alex Elliot Kelvin Hussey Lourdes Valle Michael Robinson TECHNOLOGY PRINCIPAL PROCESS ENGINEERING ESG MANAGER GEOLOGIST MANAGER MANAGER BSc (Chemistry), BEng BSc (Hons), MAIG FAusIMM (CP), FIEAust, NER BSc (Environmental Science) (Chemical), Ph
Slide 11: Our Project Team
7/09/2022 Our Project Team For personal use only Robert Gerrard Sam Binnie Alvin Chin Graeme Perkins Alex Buchan Bhupesh Kalia DEPUTY PROJECT NPI PROJECT MANAGER PROJECT MANAGER E&I PROJECT MANAGER – COMMERCIAL & PROJECT CONTROLS DIRECTOR HYDROMET PLANT CONTRACTS MANAGER MANAGER BEng (Civil) (Hons),
Slide 12: NdPr and NdFeB Magnet Market Overview
7/09/2022 NdPr and NdFeB Magnet For personal use only Market Overview (ASX:ARU) 11
Slide 13: China NdFeB Exports & China EV Sales
7/09/2022 China NdFeB Exports & China EV Sales For personal use only Source: Baiinfo Source: www.insideevs.com ➔ China NdFeB magnet exports performed strong in the quarter through to June 2022 ➔ China EV sales continued the trend of quarter-on-quarter growth to June 2022 ➔ In the 12- month period Nd
Slide 14: NdFeB Magnet Output & China Manufacturing Index
7/09/2022 NdFeB Magnet Output & ➔ EV demand was strong, exports China Manufacturing Index were stable, but NdFeB magnet production tapered 1H CY2022 For personal use only ➔ NdPr price impacted by softer China domestic magnet demand and decreased manufacturing • Complete lockdown in April • July and
Slide 15: NdPr for Magnets Critical Component in Clean Energy Sector
7/09/2022 NdPr for Magnets Critical Forecast supply gap emerging by 2030 represents in excess of 10 Nolans Projects Component in Clean Energy Sector For personal use only ➔ Wood Mackenzie forecast an Accelerated Energy Transition (AET) 1.5 °C scenario (Global net zero by 2050) requires significant a
Slide 16: Offtake Engagement
7/09/2022 Offtake For personal use only Engagement (ASX:ARU) 15
Slide 17: Offtake MoUs signed
7/09/2022 Offtake MoU’s signed: For personal use only Hyundai Motor GE Renewable Corporation Energy 1/3 Planned Production1 under MoU with Hyundai Arafura is in Foundation 1,000- 2940 - 1,500tpa discussions with more Customer MoU Hyundai 3440tpa Arafura’s NdPr Non binding MoU with Remaining Oxide Pl
Slide 18: Project Funding
7/09/2022 Project For personal use only Funding (ASX:ARU) 17
Slide 19: Funding Structure
Funding 7/09/2022 Structure Project Funding MMI Grant For personal use only Requirement Debt MLAs appointed, Societe Generale and NAB MLAs seeking to arrange US$510m (inclusive of cost over run) debt financing Balance of the debt financing will be targeted through untied ECA funding and to the exten
Slide 20: Contact Information
7/09/2022 Contact Information For personal use only Level 6, 432 Murray St, Perth WA 6000 34/119 Reichardt Rd, Winnellie NT 0820 +61 8 6370 2800 arafura@arultd.com www.arultd.com (ASX:ARU) 19
Slide 21: Further Information
7/09/2022 Further For personal use only Information (ASX:ARU) 20
Slide 22: Project Economics Robust
7/09/2022 Project Economics Robust Mining and Production economics For personal use only Mine Life (years) 38 based on long NdPr Oxide (tpa) 4,440 SEG/HRE Oxide (tpa) 474 term NdPr price Phosphoric Acid (tpa 54% P2O5 MGA) 144,393 of US$87/kg Financial US$ A$ Capital Cost ($m) 837 1,150 NdPr Oxide (U
Slide 23: Long Life Asset: NdPr rich & open at depth
7/09/2022 Long Life Asset NdPr rich & open at depth RESOURCES TONNES (m) RARE EARTHS TREO % PHOSPHATE P2O5 % NdPr ENRICHMENT % For personal use only 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 As announced on 7 June 2017. 1% TREO cut-off grade. Numb
Slide 24: Process Flowsheet
7/09/2022 Process Flowsheet For personal use only (ASX:ARU) 23
Slide 25: NdPr Supply Gap
7/09/2022 Investment in new projects is required to NdPr Supply Gap meet demand requirements For personal use only New supply will lag significantly behind demand growth and only a handful of non - China NdPr projects will be in production in the next 5 years Tighter regulatory and policy controls w
Slide 26: Strategic Importance of Producing an Oxide
7/09/2022 Strategic Importance of Producing an Oxide 1. Mine 3. RE Separation 5. NdPr Metal 6. NdFeB Alloy/ 7. End User/ For personal use only 2. RE Extraction 4. NdPr Oxide (Conversion) Magnet Maker Manufacturer Non-China Value Chain China Value IMPORT & IMPORT Chain IMPORT TOLL PROCESS China curre
Slide 27: Seeking Offtake & Supply Chain Achievement in these ESG Credentials
7/09/2022 SEEKING Offtake & Supply Chain ACHIEVEMENT IN THESE ESG CREDENTIALS Mine RE Extraction For personal use only RE Separation Sustainable producer of NdPr to align to Toll (Australia) “Green Procurement” strategy Processing Contract NdPr Oxide Enables access to a sustainable NdPr feedstock Me
Slide 28: Waste and Water
7/09/2022 Waste and Water Arafura’s single site processing model provides traceable product and waste management systems which is aligned Approved End to end Management with customers’ ESG expectations. For personal use only Environmental Approval and Project Costing includes all Approved end to end
Slide 29: Indigenous Engagement
7/09/2022 Indigenous Engagement For personal use only Native Title Agreement executed Local and Indigenous Procurement Plan in place James Glenn (left) and Tony Scrutton (right) signing the Native Title Agreement. Comprehensive long-term consultation Extensive Social Studies conducted Community & st
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