Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Austmine CEO Leadership Luncheon (May 2022)
29 slides from Arafura Rare Earths's conference presentation, May 25, 2022
Slide 1: Austmine Function Presentation ASX Announcement
ASX ANNOUNCEMENT AUSTMINE FUNCTION PRESENTATION 25 May 2022 For personal use only Arafura Resources Limited (ASX:ARU) (“Arafura” or the “Company”) is please to attach a copy of its presentation for the Austmine CEO Leadership Luncheon. Mr Mark Southey, Chairman presented on the topic “Arafura- Resha
Slide 2: Arafura – Reshaping the Critical Minerals Supply Chain
24/05/2022 Arafura – Reshaping For personal use only the Critical Minerals Supply Chain Austmine Event May 2022 (ASX:ARU) 1
Slide 3: Disclaimer
24/05/2022 Disclaimer For personal use only 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 wit
Slide 4: Corporate Snapshot
24/05/2022 Corporate Nolans is a shovel-ready Capital Structure world class NdPr project in ASX Code ARU the Northern Territory Snapshot ASX Share Price (20 May 2022) $0.385 For personal use only Shares on Issue 1,550m NdPr is the key input for high Market Capitalisation $565.91m performance NdFeB 1
Slide 5: The Nolans Project
24/05/2022 The Nolans Project Nolans Project contains all the Rare is the only NdPr focused project in Australia Earths but is particularly For personal use only that plans to enriched in the ‘Magnet Feed’ Rare Earths NdPr mine and process ore to oxide at a single site. 60 59 Nd Pr NEODYMIUM PRASEOD
Slide 6: Markets & Offtake
24/05/2022 Markets & Offtake For personal use only (ASX:ARU) 5
Slide 7: NdPr Supply Gap
24/05/2022 Investment in new projects is required to NdPr Supply Gap meet demand requirements For personal use only New supply will lag significantly behind demand growth and only a handful of non - China NdPr projects will be in production in the next 5 years Tighter regulatory and policy controls
Slide 8: Strategic Importance of Producing an Oxide
24/05/2022 Strategic Importance of Producing an Oxide 1. Mine 3. RE Separation 5. NdPr Metal 6. NdFeB Alloy/ 7. End User/ For personal use only 2. RE Extraction 4. NdPr Oxide (Conversion) Magnet Maker Manufacturer Non-China Value Chain China Value IMPORT & IMPORT Chain IMPORT TOLL PROCESS China curr
Slide 9: Global EV Sales and NdPr Price Rise
24/05/2022 Global EV Sales NdPr Price Rise (BEV+PHEV) For personal use only Price EV sales increased from 3.2 million in 2020 to 6.4 increasing million in 2021 with 2022 showing even more growth. Chinese Inventory in line with demand and down by supply ~60% 1,000,000 since mid-2020 900,000 800,000 7
Slide 10: Nolans Project Overview
24/05/2022 Nolans Project For personal use only Overview (ASX:ARU) 9
Slide 11: Key Facts
24/05/2022 Key Facts Nolans aims to supply Advanced manufacturing onsite ~5% of global demand for For personal use only – Ore to oxide at Single Site – NdPr oxide First of its kind in Australia De-risking Costs - FEED commenced August 2021 targeting completion mid 2022. Fixed price EPC contracts for
Slide 12: Close to Existing Key Infrastructure
24/05/2022 Close to existing key infrastructure For personal use only Stuart Highway 10 km east Amadeus natural gas pipeline- adjacent to project site Water supply 25km southwest Tailings and process wastes at site Alice Springs railyard, airport and other services 135km south (ASX:ARU) 11
Slide 13: Long Life Asset
24/05/2022 Long Life Asset NdPr rich & open at depth RESOURCES TONNES (m) RARE EARTHS TREO % PHOSPHATE P2O5 % NdPr ENRICHMENT % For personal use only Measured 4.9 3.2 13 26.1 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. Num
Slide 14: Project Economics
24/05/2022 Project Economics Robust economics Mining and Production based on long term For personal use only Mine Life (years) 38 NdPr price of NdPr Oxide (tpa) 4,440 US$87/kg SEG/HRE Oxide (tpa) 474 Phosphoric Acid (tpa 54% P2O5 MGA) 144,393 Current price US$140/kg* Financial US$ A$ Capital Cost ($
Slide 15: Process Flowsheet
24/05/2022 Process Flowsheet For personal use only (ASX:ARU) 14
Slide 16: Shovel Ready
24/05/2022 Shovel Ready For personal use only Regulatory Security of Tenure & Social Technical License to Operate Customer verification of oxide products Australian Government provide conditional letters of support for $300M in debt $30m Grant awarded under the Federal Government’s Modern Manufactur
Slide 17: Project Funding
24/05/2022 Project For personal use only Funding (ASX:ARU) 16
Slide 18: Offtake Strategy
24/05/2022 Current indicative sales opportunities MoUs Offtake USA Europe ~9,225tpa of NdPr Oxide Japan Korea Korea 1000-1500tpa China 1,800tpa2 Strategy For personal use only Original Equipment Manufacturers (OEM), Wind Turbine MoU Hyundai MoU JingCi Material Science Motor Company Manufacturers, E-
Slide 19: Flagship Project with Strong Government Support
24/05/2022 Flagship Project with Strong Government Support Major Project Status: Formal recognition of the national strategic significance of the Project through its economic For personal use only and employment contribution to the Northern Territory. CMFO EFA NAIF MMI Critical Minerals Strategy Cri
Slide 20: Targeted Funding Structure
24/05/2022 Targeted Funding Project Structure Funding For personal use only Requirement Debt Commercial lenders appointed to lead the DD process and the structuring of the transaction NAIF & EFA will support A$300m of debt subject to further DD and credit approval Debt Equity Offtake drives the part
Slide 21: Environment, Social, Governance
24/05/2022 Environment, Social, For personal use only Governance (ASX:ARU) 20
Slide 22: ESG Leadership
24/05/2022 “Arafura’s ESG commitment is to be a trusted global leader ESG Leadership and supplier of choice for sustainably mined and processed rare earth products, helping our customers deliver clean and efficient technologies. We are committed to For personal use only delivering positive intergene
Slide 23: Supply Chain Integrity
24/05/2022 SEEKING TRACEABLE ACHIEVEMENT Supply Chain Integrity BLOCKCHAIN IN THESE ESG NETWORK CREDENTIALS Mine RE Extraction For personal use only RE Separation Transparent, traceable NdPr supply (Australia) NdPr Oxide Ore to NdPr oxide processing at the project site Metal Converter establishes a
Slide 24: Leading Edge CO2 Reduction Strategy
24/05/2022 Emissions Stage 1 solar farm with potential to generate 1 Leading edge CO2 Reduction Strategy megawatt (MW) of power per hectare. For personal use only Rendering of Nolans Project with proposed stage 1 solar farm. • Proposed staged development to substitute 100% of electricity generation
Slide 25: Waste and Water
24/05/2022 Waste and Water Arafura’s single site processing model provides traceable product and waste management systems which is aligned Approved End to end Management with customers’ ESG expectations. For personal use only Environmental Approval and Project Costing includes all Approved end to en
Slide 26: First Nations Engagement and Development
24/05/2022 First Nations An agreement has been signed with the three native title holder groups over the Project through the Indigenous Engagement and Central Land Council (CLC) For personal use only Development Local and Indigenous Procurement Plan in place Comprehensive long-term consultation Best
Slide 27: Contact Information
24/05/2022 Contact Information For personal use only Level 6, 432 Murray St, Perth WA 6000 34/119 Reichardt Rd, Winnellie NT 0820 +61 8 6370 2800 arafura@arultd.com www.arultd.com (ASX:ARU) 26
Slide 28: Experienced Board
24/05/2022 Experienced Board For personal use only Mark Southey Chris Tonkin Quansheng Zhang Cathy Moises Darryl Cuzzubbo NON-EXECUTIVE CHAIRMAN NON-EXECUTIVE DIRECTOR NOMINEE DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR Mark Southey has previously held Chris Tonkin has over 35 years’ Quan
Slide 29: Experienced Management
24/05/2022 Experienced Management For personal use only Gavin Lockyer Peter Sherrington Stewart Watkins Lloyd Kaiser MANAGING CHIEF FINANCIAL GENERAL MANAGER GENERAL MANAGER DIRECTOR OFFICER PROJECTS SALES & MARKETING Gavin Lockyer’s diverse, global Peter commenced employment Stewart has over 30 yea
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