Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Proactive Investors Critical Minerals Webinar (September 2020)
20 slides from Arafura Rare Earths's conference presentation, Sep 8, 2020
Slide 1: ASX Announcement: Proactive Investors Critical Minerals Webinar
ASX ANNOUNCEMENT INVESTOR PRESENTATION- PROACTIVE INVESTORS CRITICAL MINERALS WEBINAR 8 September 2020 For personal use only Arafura Resources Limited (ASX:ARU) (“Arafura” or the “Company”) is pleased to attach a copy of the presentation which was used as the basis of the Critical Minerals webinar h
Slide 2: Proactive Webinar Presentation
08/09/2020 Proactive Webinar For personal use only Presentation 8 September 2020 (ASX:ARU) 1
Slide 3: Disclaimer
7/09/2020 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 and full r
Slide 4: Corporate Snapshot
08/09/2020 Corporate Nolans world class NdPr project – Capital Structure Snapshot DFS completed February 2019 ASX Code ARU For personal use only NdPr is the key input for high ASX Share Price (31 August) $0.077 performance NdFeB permanent Shares on Issue 1,168m magnets Market Capitalisation* $89.92m
Slide 5: Nolans Project
08/09/2020 Nolans For personal use only Project (ASX:ARU) 4
Slide 6: Long Life Asset
08/09/2020 Long Life Asset 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 As announced on 7 June 2017. 1% TREO cut-off grade. Numbers may not compute exact
Slide 7: Nolans project highlights
08/09/2020 100% Australian Domiciled For personal use only DFS completed, flowsheet de-risked, native Mining and value-add chemical processing title agreement executed, development leases at a single site in the NT – ore to oxide granted Environmental approvals secured, progressive (ASX:ARU) Long li
Slide 8: Robust Economics
08/09/2020 Robust Economics DFS in 2019 and Ore For personal use only Reserves updated 2020 Capital cost A$1006m Low cost producer at US$23.71/kg NdPr (current price US$49.70/kg) 39-year mining inventory with expansion potential Only Australian NdPr- focused project that is shovel ready As announced
Slide 9: Job Creation during Construction & Operations
08/09/2020 Job Creation during Construction & Operations For personal use only Territory Benefit Plan being developed Minimum 39-year operational life Local and indigenous business involvement and support $225 million annual spend Employing Territorians 280* direct permanent jobs across the Territor
Slide 10: What we have achieved in the last year
08/09/2020 What we have 1 DFS completed 2019 achieved in the 2 Federal & NT environment approvals secured For personal use only last year 3 Native Title Agreement executed 4 Mining Licence granted 5 Federal Major Project Status renewed 6 Updated Ore Reserves & Life of Mine 7 Completion of Indigenous
Slide 11: Offtake Strategy
08/09/2020 Offtake For personal use only Strategy (ASX:ARU) 10
Slide 12: NdPr Critical to EV Sector
08/09/2020 Chevrolet Bolt: 150 kW permanent NdPr Critical to EV Sector – Magnet magnet (PM) motor with 60 kWh Efficiency & Deprival Value For personal use only lithium-ion battery pack.1 PM motor cost based on US$8 per kW.2 Estimate of 1 kilogram of NdPr metal per Modelled effect of increase in NdPr
Slide 13: China's Evolving Integrated NdPr Supply Chain
08/09/2020 China’s Evolving Integrated NdPr Supply Chain – Enables Made In China 2025 Strategy For personal use only Ore Concentrate Oxide Metal Alloy Magnet Component EV 2010 95% 95% 90% 80% 85% 80% 2018 70% 70% 85% 90% 90% 90% Market Value x 10x 100x 1000x MADE IN CHINA CHINA 2025 REST OF THE WORL
Slide 14: Product Offtake
08/09/2020 Product Offtake For personal use only Amount Proportion Customer / Target Region Offtake Status (tonnes p.a.) of Revenue NdPr Oxide – targeting contract with NdFeB magnet companies &/or end users JingCi Material Science 900 MoU Baotou Tianhe Magnetics 900 MoU Japan 96% South Korea 2,557 I
Slide 15: Offtake Process
08/09/2020 Offtake Process Arafura rare earth products from For personal use only Customers at varying levels of Nolans flowsheet piloting engagement – MOUs & Terms Sheets Japan, Europe and Korea buyers may prefer NdPr metal to oxide Arafura has MOU for toll NdPr oxide to metal conversion in Thailan
Slide 16: Project Funding Strategy
08/09/2020 Project For personal use only Funding Strategy (ASX:ARU) 15
Slide 17: Project Funding Strategy
08/09/2020 Project Funding Strategy Arafura looking to secure A$1,006m to meet initial CAPEX requirements for the Nolans project For personal use only Potential sources of funding include equity, debt, JV and/or project selldown with a strategic investor Completion of DFS and regulatory approvals ar
Slide 18: Targeted Funding Structure
08/09/2020 Targeted Funding Offtakers Structure For personal use only ECA Loans/ ECA debt will be Guarantees Nolans Project critical but not the entire funding solution NAIF Commercial Debt EFA & Other Equity Portfolio of funding Instruments sources Offtake, debt and Strategic Equity strategic equit
Slide 19: Indicative Production Timeline
08/09/2020 Indicative Production Timeline Targeting Front-End Engineering & Design (FEED) to be fully funded prior to commencement For personal use only Timeline subject to change due to impact by COVID-19 on funding and offtake activities (ASX:ARU) 14
Slide 20: Contact Information
08/09/2020 Contact Information For personal use only Level 6, 432 Murray Street Perth WA 6000 Australia +61 8 6370 2800 arafura@arultd.com www.arultd.com (ASX:ARU) 16
Arafura Resources — Proactive Investors Critical Minerals Webinar (September 2020) on 6ix