Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Investor Presentation (October 2021)
26 slides from Arafura Rare Earths's investor presentation, Oct 5, 2021
Slide 1: Nolans Project Investor Update
4/10/2021 Nolans Project Investor Update 5 October 2021 (ASX:ARU) 1
Slide 2: Disclaimer
4/10/2021 Disclaimer 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 review made
Slide 3: Capital Structure
4/10/2021 Capital Structure Corporate ASX Code ARU Snapshot NdPr is central to ASX Share Price (1 October 2021) Shares on Issue $0.215 1,550m Market Capitalisation $333.2m many clean energy 12 Month Liquidity $211.2m applications including EVs and wind Cash* $10.79m turbines Debt Nil Nolans is a sho
Slide 4: Nolans Project Key Info
4/10/2021 Nolans Project Key Info (ASX:ARU) 4
Slide 5: Advanced Manufacturing in Australia
Advanced Manufacturing in 4/10/2021 Australia Nolans is the only NdPr focused project in Australia that plans to mine and process ore to oxide at a single site. Supplier of choice for sustainably mined NdPr oxide. All environmental approvals have been secured and waste management & site rehabilitati
Slide 6: Nolans NdPr Shovel Ready
4/10/2021 Regulatory Nolans Federal & NT Environmental Approvals secured NdPr Government and Minister support for senior debt facility Shovel Security of Tenure & Social License to Operate Native Title Agreement Ready Mineral License Granted Federal Major Project Status Indigenous Engagement Strateg
Slide 7: Progress Towards Construction
4/10/2021 Indigenous Cultural Awareness Training Progress Towards Construction completed by staff and owner’s team Hydrometallurgical Non-Process Infrastructure Arafura’s Owners’ team Plant FEED Commenced FEED early works including personnel from KBR August progressing and Wave ramping up. • Hatch L
Slide 8: Nolans Key Development Milestones
4/10/2021 Nolans Key Development Milestones *Milestone targets are indicative and subject to change and are contingent upon funding, offtake activities and general market conditions 1. FID and First Production are both subject to outcomes with offtake and financing. 2. Conditional letters of support
Slide 9: Global Market Info
4/10/2021 Global Market Info (ASX:ARU) 9
Slide 10: A Vital Cog in the Electric Vehicle Revolution
4/10/2021 Total mineral demand from new EV A Vital Cog in the Electric Vehicle kt sales by scenario Revolution 14000 2020 12000 Stated Policies Scenario EV market growth is exponential: 10 to 10000 Sustainable Development Scenario 40 times in the next 20 years 8000 This will require 6-15 times more
Slide 11: A lesson in the auto-semiconductor shortage
4/10/2021 A lesson in the auto- The automotive semiconductor shortage has semiconductor shortage caused billions of dollars in lost revenue for the Auto industry Urgency for NdPr supply security Like the semiconductors, high performance NdFeB magnets are a small but vital part of an EV NdFeB Magnet
Slide 12: NdPr Market Opportunity
4/10/2021 NdPr Market Opportunity SUPPLY Market analysts forecast a supply gap that represents 109% of global supply today and is in excess of 11 Nolans Projects The emerging supply gap has extra significance for companies not aligned with the China 2025 strategy DEMAND Automotive sector is forecast
Slide 13: NdPr Price Rise
4/10/2021 NdPr Oxide Output & Price EXW China NdPr Price Rise Chinese inventory stockpiles down by ~60% since mid-2020 Chinese producers near full capacity Supply chain issues highlighted by Source: Lynas Rare Earth (LYC output), BAIINFO (NdPr oxide production), Asian Metals (NdPr Price) growing EV
Slide 14: Offtake & Funding
4/10/2021 Offtake & Funding (ASX:ARU) 14
Slide 15: Offtake Strategy
4/10/2021 Offtake Strategy Arafura is in discussions with 10 parties for >260% of Planned Production1 with a view to secure 85% as binding offtake Targeting NdPr users not aligned with Made in China 2025 strategy Progressing Offtake agreements with customers seeking supply security Current indicativ
Slide 16: Nolans Supply Chain Model
TRACEABLE 4/10/2021 Nolans Supply BLOCKCHAIN NETWORK Chain Model Mine RE Extraction RE Separation Sustainable producer of NdPr to align (Australia) Toll Processing to “green procurement” strategy Contract NdPr Oxide Offtake Model proposes ‘Toll Processing’ of Metal Converter metal providing a comple
Slide 17: ESG - Current activities and initiatives
4/10/2021 ESG - Current activities and initiatives “Arafura’s ESG commitment is to be a trusted global leader and supplier of choice for sustainably mined and processed rare earth products, helping our customers deliver clean and efficient technologies. We are committed to delivering positive interg
Slide 18: Nolans - Part of Australia's Critical Minerals Sector & Global New Energy Economy
4/10/2021 Nolans - Part of Australia's Critical Minerals Sector & Global New Energy Economy ➔ Australian Government leveraging critical mineral Critical minerals are strategic for reserves to provide Australia with a place in the governments and will enable value chain for processing and supply of e
Slide 19: Funding Strategy Leverages Global Focus On Critical Material Supply Chains
4/10/2021 Funding Strategy Leverages Global Most countries targeting low carbon transport and renewable energy to achieve net-zero emissions Focus On Critical Material Supply Europe, Japan, Korea and US recognise the need for Chains diversified and robust critical material value chains Foreign ECAs
Slide 20: Targeted Funding Structure
4/10/2021 Targeted Funding Offtakers Structure ECA Loans/ ECA debt and Guarantees Nolans Project guarantees will be critical but not the NAIF entire funding solution Commercial Debt EFA & Other Equity Instruments Portfolio of funding sources Strategic Equity- Value Chain Offtake, debt and Partners s
Slide 21: Contact Information
4/10/2021 Contact Information Level 6, 432 Murray St Perth WA 6000 Australia +61 8 6370 2800 arafura@arultd.com www.arultd.com (ASX:ARU) 21
Slide 22: Experienced Board
4/10/2021 Experienced Board Mark Southey Chris Tonkin Quansheng Zhang Cathy Moises Gavin Lockyer NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR MANAGING DIRECTOR Mark Southey has previously held Chris Tonkin has over 35 years’ Quansheng Zhang holds a Doct
Slide 23: Experienced Management
4/10/2021 Experienced Management Peter Sherrington Lloyd Kaiser Brian Fowler Stewart Watkins CHIEF FINANCIAL OFFICER & GENERAL MANAGER GENERAL MANAGER GENERAL MANAGER COMPANY SECRETARY SALES & MARKETING NT & SUSTAINABILITY PROJECTS Peter commenced employment with Lloyd has more than 10 years' Brian
Slide 24: Attractive Project Economics
4/10/2021 Attractive Project Economics Definitive Feasibility Study Mining and Production Mine Life (years) 38 (DFS) update released in NdPr Oxide (tpa) 4,440 May 2021 SEG/HRE Oxide (tpa) 474 Phosphoric Acid (tpa 54% P2O5 MGA) 144,393 Post-tax NPV8 of A$1.4 billion and IRR of 18.1% Financial US$ A$
Slide 25: Long Life Asset
4/10/2021 Long Life Asset RESOURCES TONNES (m) RARE EARTHS TREO % PHOSPHATE P2O5 % NdPr ENRICHMENT % NdPr rich & Measured 4.9 3.2 13 26.1 open at depth 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 ex
Slide 26: Local Processing: More Jobs, Secure Supply Chains
4/10/2021 Local Processing: More Jobs, Secure Supply Chains 1. Mine 3. RE Separation 5. NdPr Metal 6. NdFeB Alloy/ 7. End User/ 2. RE Extraction 4. NdPr Oxide (Conversion) Magnet Maker Manufacturer Non-China Value Chain China Value IMPORT & IMPORT Chain IMPORT TOLL PROCESS Imported feedstock will be
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