Slide 1: VHM Limited Shareholder Webinar
VHM Limited Shareholder Webinar 7 August 2024 ASX:VHM Acknowledgement of Country VHM acknowledges the Australian Aboriginal and Torres Strait Islander peoples as the first inhabitants of the nation and the traditional custodians of the lands where we live, learn and work. We pay our respects to past
Slide 2: Disclaimer and forward-looking statements
Disclaimer and forward-looking statements Important Information Forward-looking statements are based on numerous assumptions regarding VHM Limited’s present and future business strategies and the environment in which VHM Limited will operate in the future. Among the important This presentation has b
Slide 3: On today's webcast
On today’s webcast Key highlights Accelerating Goschen to production Share Purchase Plan Goschen Project update Next six months Market outlook Positioning the Company for development Ron Douglas, CEO, VHM Limited 3
Slide 4: Key highlights
Key highlights Emerging Tier 1 integrated rare earth and minerals sands project with globally significant mineral assemblage Construction ready with pathway to production: in anticipation of primary approval. Simple operating methodologies: Shallow-pit mined via truck-shovel with conventional proc
Slide 5: Accelerating Goschen towards production
Accelerating Goschen towards production Extensive development works complete Definitive Feasibility Study Goschen Environment 30% Capex Reduction Extensive Exploration Refreshed Approval for Goschen Base Plant Drill Program 20–25-year Life of Mine I NPV A$1.525B I IRR 44% I Low Capex I Report with t
Slide 6: Share Purchase Plan and Placement overview
Share Purchase Plan and Placement overview Offer Structure and Size Placement strongly supported by existing top shareholders raised $1.8 million before costs (4.3 million new shares) – pursuant to the Company’s existing placement capacity under ASX Listing Rule 7.1. Offer Price $0.42, a 20% discoun
Slide 7: Share Purchase Plan and Placement overview
Share Purchase Plan and Placement overview Event Date (2024) SPP Record Date (7:00 pm AEST) Wednesday, 24 July Announcement of SPP Thursday 25 July SPP Offer opens and dispatch of SPP Booklet (Open Date) Wednesday, 31 July SPP Offer closes (Closing Date) (7.00pm AEST) Wednesday, 14 August Announceme
Slide 8: Goschen Project - Delivering globally significant critical minerals in Victoria
Goschen Project - Delivering globally significant critical minerals in Victoria
Slide 9: Goschen permitting pathway
Goschen permitting pathway Approvals milestones achieved Primary Approval (EES) Secondary Approvals (Work Plans, Mining Licence) Source: Engage Victoria website Q4 2023 Victorian Minister for Planning approved public exhibition for Goschen EES1 Exhibition stage: Public Submissions2 Monday 20 Novembe
Slide 10: Dual commodity stream
Dual commodity stream VHM generates revenue from two independent product streams VHM1 Forecast Revenue Composition (%) Image2 and Lynas3 Revenue Composition (%) Diversifed revenue Non-diversified Mineral sands 100.0% Rare earths 44.0% Mineral sands 56.0% Rare earths 100.0% Notes: (1) Rare earth fore
Slide 11: Rare earth peer comparison
Rare earth peer comparison Victoria has rare earth elements – heavies and lights 70 Dy Tb 60 Victorian projects Nd Pr 50 US$ of magnet REO per kg of REO Dy and Tb are sourced almost entirely from ionic 40 clays in China and Myanmar. There is an opportunity 30 for Victorian projects to be an alternat
Slide 12: The strength of dual commodity streams
The strength of dual commodity streams NdPr oxide price (US$/kg) 250 Wood Mackenzie forecasts 200 magnet REO prices will stabilise throughout 2024 with demand gradually picking up 150 2026-28 pricing forecast for NdPr oxide (~US$80/kg) 100 50 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2
Slide 13: Funding strategy
Funding strategy Multifaceted funding strategy comprising debt, equity and government funding GOSCHEN PROJECT FUNDING VHM is progressing its multifaceted funding DEBT EQUITY strategy for the Goschen Project with a Commercial Banks Strategic Partnerships view to finalising the funding pathway Explori
Slide 14: The next six months
The next six months Activity Status Environmental Approval Recommendation report with Planning Minister for review and approval Mining Licence Approval Mining Licence application is with the Earth Resources Regulator for assessment Work Plan Approval Draft Work Plan exhibited as part of the Environm
Slide 15: Timeline to production
Timeline to production Oct 2024 Apr Jul Oct 2025 Jan Apr Jul 2026 Oct Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Pre-FID Post-FID Phase I Task 1 Export Credit Agencies - Debt Corporate Commercial Banks Equity Raise Phase II Primary Permit Work Plans/Management Plans FID Operations Mining Licence First production Pr
Slide 16: Markets for Critical Minerals
Markets for Critical Minerals
Slide 17: Rare earths driving the energy transition
Rare earths driving the energy transition End uses 32% Electric vehicles 28% Wind turbines and industry motors 14% Mobile phones and other communication devices 12% Laptops and digital cameras 10% Electromagnetic relay electronic controller sensor 4% Medical devices and other medical equipment Marke
Slide 18: Heavy rare earths are important
Heavy rare earths are important Critical elements in technology advancements in the journey to net zero Adding Dysprosium or Terbium to Nd-Fe-B magnets results in Advantages of direct-drive wind turbine over a greater resistance to demagnetisation at higher temperatures traditional turbines: Remov
Slide 19: Urbanisation has a long way to go
Urbanisation has a long way to go Forecasted demand zircon Forecast demand for zircon sands by region Zircon prices have remained relatively stable at ~US$2,000/tonne. TZMI expects long-term global zircon demand to grow at 2.6% per annum with India, the Americas and other Asia Pacific markets ex
Slide 20: Market driven by "physicals"
Market driven by “physicals” Forecasted demand for magnet rare earth oxides Forecast demand and price for NdPr Adamas projects by 2040 the global demand for magnet rare earth oxides will reach 330,000 tonnes – triple the global consumption in 2023 Demand is driven by offshore wind power installa
Slide 21: Government to Government – Bilateral agreements
Government to Government – Bilateral agreements Department of Foreign Affairs and Trade Australia’s Critical Minerals Office Facilitates government-to-government agreements that Supports research and developing in build investor confidence and commercial arrangements partnership with CSIRO, ANSTO an
Slide 22: Who's interested in Australia's critical minerals?
Who’s interested in Australia’s critical minerals? Recent foreign trade interest POSCO Mitsui Siemens General Stellantis Alkemy Tata Motors - Tees Valley Lithium Engaged in a joint Attended Austrade Signed a collaboration Entered into a binding Entered into a non- Entered into a supply Technology Me
Slide 23: Future opportunities
Future opportunities High-grade strandlines New South Wales 21 strandlines identified by processing historic data1. VHM drilling in targeted strandlines identified high- grade, near-surface THM. As part of its future exploration program, VHM will continue to target identified high-grade strand
Slide 24: Positioning the Company for development
Positioning the Company for development Reduce expenditure Capital costs reduced by 30%1 Preserve value in our balance sheet Ready the business to respond to approvals Rigorous approach to cost optimisation Maintain strong relationships with government stakeholders Note (1): See ASX release dated 17
Slide 25: Appendix A. Corporate Overview
Appendix A. Corporate Overview
Slide 26: VHM Limited (ASX:VHM) overview
VHM Limited (ASX:VHM) overview Australian owned rare earths and mineral sands Corporate Snapshot mine and processing developer GOSCHEN PROJECT3 Market Cap1 Top 20 Shareholders 98.8Mt ORE @ 4.0% THM Zircon 23.6%, Rutile 9.9%, A$88.56 million Top 20: 34% Mon 3.7%, Xen 0.7% Ellison WA: 9.1% CANNIE PROJ
Slide 27: Board and management team
Board and management team Ms Carly O’Regan MBA, GDipCom Executive General Manager, Strategy and Investor Relations Significant business and operational experience in a diverse range of industries, including finance, commercial, mining, oil and gas, both in Australia and internationally including Bar
Slide 28: Appendix B. Peer Comparison Data
Appendix B. Peer Comparison Data
Slide 29: Project comparison table data for rare earth basket value
Project comparison table data for rare earth basket value Magnet Rare Earth Oxide % Distribution of Rare Earth Product Neodymium Praseodymium Dysprosium Terbium Stage of Market Cap* Name Project Product Location (Nd) (Pr) (Dy) (Tb) Development ($A) Arafura1 Nolans Oxide 20.5 5.9 0.3 0.1 DFS N.T. $37
Slide 30: Appendix C. JORC Tables
©) VIM Limited Appendix C. JORC Tables
Slide 31: Company Mineral Resources
Company Mineral Resources 892.1 Mt Mineral Resource estimate Notes: Any discrepancies in totals are a function of rounding. 1. Mineral resources reported at a cut-off grade of 1.0% THM. 2. Mineral resources reported at a cut-off grade of 1.75% THM. 3. Mineral resources reported at a cut-off grade of
Slide 32: Company Ore Reserves
Company Ore Reserves 210.2Mt Ore Reserve Note: (1) Any discrepancies in totals are a function of rounding. THM Assemblage and Rare Earth Oxides are reported as a percentage of in-situ THM content. The Ore Reserve was updated and disclosed under the JORC Code (2012) in the ASX release published 29 Se
Slide 33: Goschen DFS Ore Reserve
Goschen DFS Ore Reserve 98.8Mt Ore Reserve – Subset of global Company Ore Reserves Note: (1) Any discrepancies in totals are a function of rounding. THM Assemblage and Rare Earth Oxides are reported as a percentage of in-situ THM content. The Ore Reserve was disclosed under the JORC Code (2012) in t
Slide 34: For further information contact
Level 11, 330 Collins Street, Victoria 3000 vhmltd.com.au For further information contact: Ron Douglas Chief Executive Officer Ron.Douglas@vhmltd.com.au