Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — 2nd Annual Technology Metals Summit 2013
13 slides from Arafura Rare Earths's conference presentation, Apr 22, 2013
Slide 1: Arafura Resources Limited – 2nd Annual Technology Metals Summit
Arafura Resources Limited For personal use only 2nd Annual Technology Metals Summit 21-22 April 2013, Toronto Arafura Resources Limited (ASX: ARU)
Slide 2: Disclaimer
Disclaimer For personal use only Important Notice This presentation contains certain statements which may constitute “forward-looking statements”. Such statements are only expectations or beliefs and are subject to inherent risks and uncertainties which could cause actual values, results or performa
Slide 3: Company Snapshot
Company Snapshot For personal use only Arafura Resources ASX Code ARU Australian company developing a Shares on offer 441.3 million major Rare Earths project – the Options 11.5 million Nolans Project. Market Cap @ 12c A$52.9 million World class resource located in the 1-year range 11 - 31 cents Nort
Slide 4: Nolans Project – Existing Base Case Configuration
Nolans Project – Existing Base Case Configuration For personal use only Ore Mineral Concentrate Rare Earth Intermedi ates Rare Earth (Carbonat Oxides e) 20,000 tpa Metals/Alloys Components OEMs Mining and Beneficiation at Nolans Bore in the Northern Territory Intermediate Chemical Processing and Rar
Slide 5: Nolans Bore Mineral Resources (June 2012)
Nolans Bore Mineral Resources (June 2012) For personal use only Tonnes Rare Earths Tonnes Phosphate Uranium Resources (million) % REO REO % P2O5 % U3O8 Measured 4.3 3.3 144,000 13 0.03 Indicated 21 2.6 563,000 12 0.02 Inferred 22 2.4 511,000 10 0.02 TOTAL 47 2.6 1,217,000 11 0.02 1% REO cut-off grad
Slide 6: Nolans Bore Ore Reserves (December 2012)
Nolans Bore Ore Reserves (December 2012) For personal use only Rare Tonnes Tonnes Phosphate Uranium Reserves Earths (million) REO % P2 O 5 % U3O8 % REO Probable 24 2.8 672,000 12 0.02 95% of Measured and Indicated Resources converted to Ore Reserves Independently prepared Ore Reserve for Nolans Bore
Slide 7: A major supplier of 'Critical Rare Earths'
A major supplier of ‘Critical Rare Earths’ For personal use only Annual Revenue Major supplier of ‘Critical Rare Earths’ USD millions ‘Heavy Rare Earth’ projects – by Revenue* 800 700 600 500 400 300 200 100 0 Yttrium p.a. Neodymium p.a. Dysprosium p.a. Terbium p.a. Europium p.a. *Rare earth prices
Slide 8: Market Conditions impacting Base Case
Market Conditions impacting Base Case For personal use only Nolans Project Base Case: Since Base Case established: Established in August 2012 Rare earth prices have fallen Project economics over further 20 years Upward pressures on costs NPV of A$4.3 billion Depressed financial markets (10% discount
Slide 9: Project Initiatives target cost reductions
Project Initiatives target cost reductions For personal use only Arafura is actively pursuing initiatives to: Identify and apply process flow sheet improvements and design efficiencies Improve and optimise the Project’s configuration and logistics Substantially reduce capital and operating costs → I
Slide 10: ECE and Optimisation Program
ECE and Optimisation Program For personal use only ECE is a strategic and important partner for Arafura Long-term and supportive relationship with Arafura since 2009. Equity increased to 24.86% via SPP (A$10 million) in 2012 Project Review and Optimisation Program underway with Chinese rare earth ex
Slide 11: Funding requirements significantly reduced
Funding requirements significantly reduced For personal use only Targeted Capex & Initiatives & = Funding Returns Savings Prospective elimination of previously announced funding (A$30 million) required to complete Feasibility Study Immediate savings identified through project reconfiguration Total c
Slide 12: Undervalued compared to peers
Undervalued compared to peers For personal use only Market TREO Forecast REO EV/Tonne Avg. Mining EV Company Location Project Stage Cap^ Resources Production Resources Grade Method (US$m) (US$m) (Mt) (tpa) (US$/tonne) % Arafura Australia Open Pit Feasibility 53 10 1.2 20,000 9x 2.6% Lynas Corp Austr
Slide 13: Arafura Resources Limited
Arafura Resources Limited Level 5, 16 St Georges Terrace Perth WA 6000 Australia For personal use only Tel: +61 8 6210 7666 arafura@arafuraresources.com.au www.arafuraresources.com.au Arafura Resources Limited (ASX: ARU)
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