Abx Group Limited · ASX:ABX
Abx — Investor Presentation (June 2023)
29 slides from Abx's investor presentation, Jun 6, 2023
Slide 1: ASX Announcement: Company Presentation
ASX Announcement 6 June 2023 ASX: ABX Company Presentation In accordance with the requirements of Listing Rule 3.1 we submit the attached material being presented to investors and brokers. Mark Cooksey, Managing Director, and CEO is making the presentation. ASX Release authorised by Mark Cooksey, Ma
Slide 2: Company Presentation, 6 June 2023
For personal use only (ASX:ABX) Company Presentation 6 June 2023 Page 1
Slide 3: Disclaimer
Disclaimer For personal use only This presentation has been prepared by ABx Group Limited ACN 139 494 885 (“ABx” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with
Slide 4: Board of Directors
Board of Directors For personal use only Hon Paul Lennon AO (Chair) Dr Mark Cooksey (Managing Director and CEO) • Premier of Tasmania 2004-2008 • More than 20 years with Rio Tinto and CSIRO • Deputy Premier and Minister for • Worked closely with aluminium and other metal Infrastructure, Energy & Res
Slide 5: Corporate Overview
Corporate Overview ASX code: ABX For personal use only Average daily Market cap Cash @ 1 June Listed Issued shares Options 52-week range volume (3 Shareholders (@$0.10) 2023 months) 24 Dec 2009 $0.10- 223.6m - 190,000 $23m $3.3m 2,546 @ $0.20 $0.18 Major Shareholders Shares % Shareholders Mutual All
Slide 6: Delivering materials for a cleaner future
Le For personal use only Delivering materials for a cleaner future 1. Discovering and developing an ionic adsorption clay Exploration Development Technology rare earth project in northern Tasmania 2. Establishing a plant to produce hydrogen fluoride and aluminium fluoride from recycled industrial wa
Slide 7: Segments
Segments Rare earth discoveries in northern Tasmania For personal use only ALCORE Aluminium fluoride production technology Bauxite operations in Queensland and Tasmania Page 6 6
Slide 8: Rare earth elements market
Rare earth elements market For personal use only • 15+ rare earth elements (REEs) used in wide variety of applications, with demand growing rapidly • China dominates rare earths markets • Prices of different rare earths vary significantly because: • Proportions of supply do not match proportions of
Slide 9: Permanent magnets
Permanent magnets Super For personal use only Magnets • Essential for electric vehicles and wind turbines • Represent over 90% of value of rare earths consumption • Forecast to grow at 7% per year to 2040 %market %market volume value Nd Pr 9% Neodymium Praseodymium Smart Electric e.g. catalysts, gla
Slide 10: Ionic adsorption clay (IAC) rare earth deposits
Ionic adsorption clay (IAC) rare earth deposits • Currently only mined in southern China For personal use only • Less complex processing: lower costs and shorter time to production • Contain much higher proportion of higher value, heavy rare earths Hard rock: Mount Weld (Lynas) Ionic clay: Deep Lead
Slide 11: ABx rare earth discoveries in Tasmania
ABx rare earth discoveries in Tasmania For personal use only • ABx is the first company to discover rare earths in Tasmania • Deep Leads and Rubble Mound have Wind Break highest reported extractions from any REE clay-hosted REE prospect in Australia: they are ionic adsorption clays2 Deep 52km Leads
Slide 12: Rare Earths Resource Estimate
Rare Earths Resource Estimate For personal use only • Announced 8 May 20231 • Five-fold increase since maiden estimate in November 20224 Size Cut-off (ppm Mean TREO Mean TREO- TREO-CeO2) (ppm) CeO2 (ppm) 21 Mt 250 770 585 Holes Metres Metres Thickness drilled drilled (m) assayed (m) (m) 635 6,224 2,
Slide 13: Not all clays are created equal: pH is king
Not all clays are created equal pH is king • Deposits A and B are For personal use only hypothetical (same grade) • Processing cost increases significantly as pH decreases • Acid consumption • Impurity removal Permanent magnet REO = Pr6O11 + Nd2O3 + Tb4O7 + Dy2O3 Source: ABX ASX release, 2 February
Slide 14: Not all clays are created equal: pH is king
Not all clays are created equal pH is king For personal use only • Charts shows indicative reagent cost and product prices, based on published data • As pH decreases, reagent cost alone can be higher than product price • Position on cost curve heavily dependent on pH required to achieve significant
Slide 15: Not all clays are created equal: desorbable grade
Not all clays are created equal ‘Desorbable grade’ varies enormously For personal use only • If only consider extraction at pH 4 (‘desorbable grade’), then deposits are very different Permanent magnet REO = Pr6O11 + Nd2O3 + Tb4O7 + Dy2O3 14
Slide 16: ABx rare earths strategy
ABx rare earths strategy For personal use only Strategy • Rapidly develop low-cost production of mixed rare earth carbonate • We operate only where welcomed 2023 Plan • Further investigations of metallurgical processing steps and conditions • Estimate CAPEX and OPEX • Deepen engagement with potentia
Slide 17: Segments
Segments Rare earth discoveries in northern Tasmania For personal use only ALCORE Aluminium fluoride production technology Bauxite operations in Queensland and Tasmania Page 16 16
Slide 18: Aluminium fluoride from aluminium smelter waste
Aluminium fluoride from aluminium smelter waste For personal use only Aluminium fluoride (AlF3): essential for aluminium smelting • 1.2 million tonnes produced globally per year worth US$1.5 • Traditionally produced billion (US$1,000-1,800 per tonne) from high-cost aluminium • 50% produced in China,
Slide 19: Process to produce aluminium fluoride
Process to produce aluminium fluoride For personal use only • Exemplary illustration of circular economy • ABx’s 83%-owned refining technology subsidiary • Developing processes to produce aluminium fluoride using: • Fluorine from tapped bath (an aluminium smelter waste) • Aluminium from dross (an al
Slide 20: Process economics
Process economics For personal use only • Based on long term aluminium fluoride prices and exchange rates, and estimated costs • For 20,000 t/y aluminium fluoride (80% of Australian demand) • Attractive margins under all scenarios Estimated Estimated Estimated AlF3 price FX rate AlF3 price operating
Slide 21: Technical progress
Technical progress For personal use only • Critical processing steps have been demonstrated in laboratory • Initial operating conditions for the pilot plant reactor have been selected5 • Basic engineering design for pilot plant reactor completed, and detailed design being finalised Rotary kiln for r
Slide 22: Process scale-up
Process scale-up For personal use only • Rigorous scale-up to reduce technical risk • First aluminium fluoride plant planned for Bell Bay, Tasmania, near existing hydro-powered aluminium smelter. Planned production 20,000 t/y • High potential for plants in other major aluminium smelting regions • Po
Slide 23: Technical plan
Technical plan For personal use only Reactor Purpose Commissioning • Confirm preferred reactor design • Demonstrate that can achieve high Bath lab fluorine yield from bath August 2023 reactor MkII • Produce metal sulfate residue suitable for further process development • Demonstrate quality of hydro
Slide 24: Segments
Segments Rare earth discoveries in northern Tasmania For personal use only ALCORE Aluminium fluoride production technology Bauxite operations in Queensland and Tasmania Page 23 23
Slide 25: ABx bauxite operations: Sunrise Bauxite project
ABx bauxite operations For personal use only Sunrise Bauxite project Queensland • 50:50 joint venture with Alumin Pty Ltd, an Australian special purpose vehicle company associated with our strategic marketing partner, Rawmin India8. ABx is operator • Mining lease application on the Binjour deposit (
Slide 26: ABx bauxite operations: Northern Tasmania
ABx bauxite operations For personal use only Northern Tasmania • Several Tasmanian bauxite ü Notice of Intent accepted for DL1308 deposits that can supply cement and fertiliser grade bauxite for many years. • Mining planned to commence at DL130 in Q3 20239 • Bauxite mining at DL130 may accelerate de
Slide 27: ABx Group Limited
For personal use only ABx Group Limited L5 52 Phillip Street Sydney 2000 Australia Phone: +61 2 9251 7177 E: corporate@abxgroup.com.au Mark Cooksey Managing Director and CEO E: mcooksey@abxgroup.com.au
Slide 28: Reference Information
Reference Information For personal use only Page 27 27
Slide 29: References
References 1 ASX release 8 May 2023 For personal use only 2 ASX release 2 Feb 2023 3 ASX release 16 March 2022 4 ASX release 23 November 2022 5 ASX release 24 October 2022 6 ASX release 29 April 2022 7 ASX release 18 Jan 2023 8 ASX release 28 February 2022 9 ABx quarterly report to December 2022, 31