Rarex Limited · ASX:REE
Rarex — Investor Presentation (February 2021)
19 slides from Rarex's investor presentation, Feb 9, 2021
Slide 1: Super-charging our rare earths growth strategy in 2021
Super-charging our rare earths growth strategy in 2021 New partners and new opportunities at a time of rising REE prices RRS Investor Presentation, 9 February 2020 │ Jeremy Robinson, Managing Director
Slide 2: Disclaimer & Competent Person Statement
Disclaimer & Competent Person Statement This presentation contains summary information about RareX Limited (REE) and is current as of 7th December 2020. The information in this presentation is of a general background and does not purport to be complete. This presentation is not investment or financi
Slide 3: Investment Overview
Investment Overview • Strategically located asset: 100%-owned Cummins Range Rare Earths Project in Western Australia – Tier-1 mining jurisdiction • Significant maiden JORC 2012 Rare Earths Mineral Resource: Inferred Resource of 13Mt at 1.13% TREO with 22.1% NdPr • Outstanding assays from recent reso
Slide 4: Corporate Snapshot
Corporate Snapshot Capital Structure Shareholders ASX Code REE Top 40 Shareholders 42% Number of Shareholders 3,839 Share Price (8th February 2021) $0.13 Shares on Issue 408m Share Price Market Capitalisation $53.0m Net Cash $5.0m Listed Investments (14.95m TSXV:KCC) $1.5m Enterprise Value $46.5m Bo
Slide 5: Rare Earth Elements
Rare Earth Elements • Rare Earths are a group of 17 elements essential to the new world economy – grouped into Light Rare Earth Elements (LREE) and Heavy Rare Earth Elements (HREE) • RareX is focused on the production of LREE’s Neodymium-Praseodymium (NdPr) which are critical to the manufacture of N
Slide 6: Rare Earth Permanent Magnets (REPMs)
Rare Earth Permanent Magnets (REPMs) Electric Vehicles • Whatever the type of EV (BEV, HEV PHEV) or the power source (Li Batteries, H Fuel Cells etc), they all use REPM motors • Each EV requires approximately 1kg to 2kg of REPM which form part of an EV’s electric motor – EV sales are expected to gro
Slide 7: Rare Earths Prices on the Rise
Rare Earths Prices on the Rise • China dominates production of rare earths and rare earth magnets, historically accounting for 80% of global production • Neodymium (Nd) Praseodymium (Pr), Dysprosium (Dy) and Terbium Prices rising sharply over past 3 months Neodymium – US$88,548/t Dysprosium – US$372
Slide 8: Cummins Range Rare Earths Project
Cummins Range Rare Earths Project • Tier-1 mining jurisdiction: Located in the Kimberley region of Western Australia • Airstrip and township nearby: 130km from Halls Creek Township and Airstrip • Good access: Accessible via Great Northern Highway, Tanami Track and pastoral tracks • Established minin
Slide 9: Substantial Maiden JORC 2012 Resource
Substantial Maiden JORC 2012 Resource • Significant maiden JORC 2012 Inferred Resource of 13Mt at 1.13% TREO released 15 October 2019 • Neodymium and Praseodymium “NdPr” content of 22.1% and ultra low thorium of 50ppm ThO2 equals premium product • Weathered carbonatite with REE mineralisation mostly
Slide 10: Recent High-Grade Drill Results
Recent High-Grade Drill Results • Spectacular recent results from 2020 drill program include • 109m at 3.6% TREO and 0.44% Nb2O5 • 90m at 3.8% TREO and 0.29% Nb2O5 • 41m at 4.0% TREO and 0.21% Nb2O5 • Highlights high grade NW trending channel • Niobium represent potential highly valuable by-product
Slide 11: Plans for 2021
Plans for 2021 • Resource upgrade currently underway – targeted for March Quarter 2021 • Metallurgical test work currently underway – expect 1H 2021 • Drill planning underway – drilling expected to resume late March/early April • Both diamond and RC to extend resource laterally and at depth • Stakeh
Slide 12: Low Capital Strategy
Low Capital Strategy • Rare Earth mineralogy dominated by monazite – the most SIMPLIFIED FLOWSHEET well understood Rare Earth Mineral from a processing perspective • RareX consulting metallurgist Mr Gavin Beer to lead metallurgical testwork on completion of final assays • Strategy is to produce a sa
Slide 13: MoU with Shenghe Resources
MoU with Shenghe Ressources • Shenghe Resources Holdings Co is a vertically integrated US$4.6Bn global rare earths producer • Non-Binding MoU executed with Global Rare Earths Producer Shenghe Resources on 4th February 2021 • Establishes framework for the formation of a jointly owned Rare Earths Trad
Slide 14: Shenghe Resources Holdings Co.
Shenghe Resources Holdings Co. • Shenghe Resources Holdings Co. is a vertically integrated US$4.6Bn global rare earths producer • Listed on Shanghai Stock Exchange (600392) • Leading producer of rare earths, zirconium and titanium • Shenghe maintains significant global investments • 8% in MP Materia
Slide 15: NSW Copper-Gold Assets
NSW Copper-Gold Assets • RareX retains a 35% free-carried interest over multiple projects and owns 7.8% of TSX:V-listed Kincora Copper • Kincora has recently mobilised 2nd Diamond Drill rig at Trundle park • Kincora exploration led by John Holliday, principal discoverer of the world-class Cadia depo
Slide 16: Trundle Project – 35% Free-Carried
Trundle Project – 35% Free-Carried • The only brownfield porphyry project held by listed juniors in the Macquarie Arc • Trundle is the western section of the Northparkes intrusive complex, which hosts the second largest porphyry mine in Australia • Confirmed similar geological settings/controls as C
Slide 17: Trundle Project – Trundle Park Target
Trundle Project – Trundle Park Target • Drilling at Trundle Park returning multiple intercepts in skarn • TRD001 – 51.0m at 1.17g/t gold and 0.54% copper from 39m • TRD008 – 87.7m at 0.65g/t gold and 0.19% copper from surface • Similar in style to the Big Cadia skarn that is peripheral to the Cadia
Slide 18: Key Investment Takeaways
Key Investment Takeaways High-quality, advanced Rare Earth Project in WA Recently completed major drilling program with significant assays Building a portfolio of high-quality Rare Earth assets Major partner in Shenghe Resources Significant exposure to NSW porphyry copper-gold exploration
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