Canada Rare Earth Corp. · TSXV:LL
Canada Rare Earth — Investor Presentation (February 2020)
32 slides from Canada Rare Earth's investor presentation, February 2020
Slide 1: Canada Rare Earth Corp. Corporate Overview
Canada Rare Earth Corporation RARE EARTHS – CRITICAL TO A CLEAN GREEN FUTURE CANADA RARE EARTH CORP. IN THE BUSINESS OF RARE EARTHS Corporate Overview February 2020
Slide 2: Forward Looking Statements
Canada Rare Earth Corporation FORWARD LOOKING STATEMENTS Information set forth in this presentation may contain forward-looking statements. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address a company’s expecte
Slide 3: Business Opportunity
Canada Rare Earth Corporation BUSINESS OPPORTUNITY To become THE TRUSTED SUPPLIER of the complete range of commercially traded rare earth products outside of China The Challenge / The Opportunity: China dominates the rare earth industry and is aggressively capturing more of the $1 Trillion applicati
Slide 4: Business Opportunity: Current Supply Solutions and Issues/Risks
Canada Rare Earth Corporation BUSINESS OPPORTUNITY Current Supply Solutions and Issues/Risks: Current solution to “Challenge” Issues & Risks Purchase from suppliers in Uncertain, tenuous supply, potentially subject to “trade China wars” & tariffs Establish manufacturing in Requires the transfer of I
Slide 5: Business Opportunity: Market Size
Canada Rare Earth Corporation BUSINESS OPPORTUNITY Market Size Today 150,000 mt/yr of oxides with a selling price of US$4 billion Next 3 to 5 years 200,000 to 250,000 mt/yr with a selling price of US$6 billion to US$7 billion Growth Non-China Portion of Approximately 15% of global supply and demand
Slide 6: Rare Earths Are...
Canada Rare Earth Corporation RARE EARTHS ARE…. • 17 elements used for improved performance and quality • Found combined together in mineral deposits • Rare earths are of little industrial value unless separated in oxides, metals, or compounds February 2020 6
Slide 7: Rare Earth Applications
Canada Rare Earth Corporation RARE EARTH APPLICATIONS • Rare earths are used in a countless list of applications • Unique properties make them invaluable for improved performance, efficiency and quality of the end products • New applications are being developed in rapid succession February 2020 7
Slide 8: Multiple Rare Earths in Applications
Canada Rare Earth Corporation MULTIPLE RARE EARTHS IN APPLICATIONS February 2020 8
Slide 9: Economic Benefit Potential
Canada Rare Earth Corporation ECONOMIC BENEFIT POTENTIAL Basic Rare Engineered End Market Raw Components From a report by the American Materials Earth Rare Earth & Systems Products & Products Materials Technologies Chemistry Council in April 2014: Health Care “each job in the rare earth industry Bat
Slide 10: Market Drivers
Canada Rare Earth Corporation MARKET DRIVERS Permanent magnet applications such as in electric vehicles and clean energy are the dominant demand drivers Supply will struggle to keep up with the rapidly rising demand for critical magnet elements such as Neodymium (Nd), Praseodymium (Pr),Terbium (Tb)
Slide 11: Future of Rare Earth Market
Canada Rare Earth Corporation FUTURE OF RARE EARTH MARKET Demand growth for rare earths is strong and increasing Applications will continue rapid development especially as a dependable, cost effective, high quality supply is established outside of China 1 1 February 2020 11
Slide 12: Market Growth
Canada Rare Earth Corporation MARKET GROWTH February 2020 12
Slide 13: Burden of Excess Supply on Prices of Key Elements
Canada Rare Earth Corporation BURDEN OF EXCESS SUPPLY ON PRICES OF KEY ELEMENTS In order to meet the growing demand for key elements such as Nd, Pr, Dy, and Tb prices are required to carry costs of producing the full set of elements causing excess supply for plentiful elements such as Ce and La. Feb
Slide 14: The Market Dilemma
Canada Rare Earth Corporation THE MARKET DILEMMA Sell to China Supply Explore, Mine, Hundreds of Engage “major” companies exploring engineering firm Concentrate have 4 choices Deploy “new” unproven technologies ✓ Access proven China dominates technology and Rest of world will separate capabilities w
Slide 15: Comments from the Market
Canada Rare Earth Corporation COMMENTS FROM THE MARKET February 2020 15
Slide 16: Customer Angst
Canada Rare Earth Corporation CUSTOMER ANGST Customers Need Risks in Current Supply Sources • Secure, dependable, timely • Overwhelming majority of source of rare earth products supply and processing is • Fair and predictable material provided by a single country costs • Flexible supply chain with m
Slide 17: Our Unique Value-Add
Canada Rare Earth Corporation OUR UNIQUE VALUE-ADD Rare Earths Are Not Rare… Processing is The “disconnect” Rare Earth Oxide Alloys Metals Compounds Concentrate Production Mineral Mine Concentrate China dominates with 6 state-owned rare earth companies that operate 30+ refineries February 2020 17
Slide 18: Our Advantage
Canada Rare Earth Corporation OUR ADVANTAGE Canada Rare Earth provides capabilities that are rare outside China and bridges the “disconnect” February 2020 18
Slide 19: Rare Earth Minerals to Market Chain
Canada Rare Earth Corporation RARE EARTH MINERALS TO MARKET CHAIN Concentrate Feedstock Mineral sands Tailings Traders and brokers Canada Rare Earth Refineries Globally strategic sites Full spectrum of critical elements (heavies and lights) Custom design to meet market & customer specifications Modu
Slide 20: Uniquely Positioned Platform
Canada Rare Earth Corporation UNIQUELY POSITIONED PLATFORM Canada Rare Earth is focusing business where our strengths and unique value proposition give us an advantage in the rare earth industry outside of China: • Our strategy is built on our unique access to proven, in-production rare earth proces
Slide 21: Our Strategic Capabilities
Canada Rare Earth Corporation OUR STRATEGIC CAPABILITIES Canada Rare Earth and its partners, have unparalleled experience and skills in the rare earth industry: • Successful track record of designing, building and operating rare earth separation plants inside and outside of China • Proven capability
Slide 22: Sourcing Strategy & Benefits
Canada Rare Earth Corporation SOURCING STRATEGY & BENEFITS • Canada Rare Earth and its affiliates focus on monazite as a source of rare earths – Long standing proven source of rare earths – Developed, proven and in production technology for concentrating and separating the full range of critical ele
Slide 23: Business for Canada Rare Earth
Canada Rare Earth Corporation BUSINESS FOR CANADA RARE EARTH Now Future Buying and Selling Delivering to existing operating Expand shipment volumes Concentrate refineries in China to supply refineries in Asia, South East Asia, North America, & South America Selling Rare Earth Sourcing from Asian and
Slide 24: Projects and Alliances
Canada Rare Earth Corporation PROJECTS AND ALLIANCES Mineral Resources/ Concentrate Rare Earth Rare Earth Concentrate Sources Pretreatment Separation Facilities Downstream (Hydrometallurgy) Processing • Africa Ganzhou Zhanhai • South America Hunan China China End Customers Hunan China • Australia •
Slide 25: South American Tailings Project
Canada Rare Earth Corporation SOUTH AMERICAN TAILINGS PROJECT In December, the Company purchased 590 hectares of tailings produced from 25+ years of mining and leased 9,960-hectares for 26 years: • The tailings contain recoverable quantities of rare earths, cassiterite, ilmenite, and zircon • CREC m
Slide 26: South American Refinery Project
Canada Rare Earth Corporation SOUTH AMERICAN REFINERY PROJECT • Canada Rare Earth has initiated a project to build and operate a rare earth processing facility in South America in line with the Company’s strategy to establish non-China based sources of refined production ready rare earth products in
Slide 27: Laos Refinery
Canada Rare Earth Corporation LAOS REFINERY • Lao Xiangjiang Rare Earth Corporation was formed by Canada Rare Earth’s partners to extend their rare earth refining capabilities outside of China to supply demand for high quality refined rare earth products • Located in an industrial development area o
Slide 28: Laos Refinery Overview
Canada Rare Earth Corporation LAOS REFINERY OVERVIEW • Capability – both heavy and light refined rare earth oxide products • Quality levels – up to 99.99% purity (higher purity possible with additional investment) • Output capacity – 3,000 metric tons per year • Expansion capacity – facility can be
Slide 29: Laos Refinery Facility
Canada Rare Earth Corporation LAOS REFINERY FACILITY • Site covers over 70,000 square meters • Factory floor area is roughly 28,000 square meters • Factory staffing of 180 employees including 27 foreigners and 153 local workers • Major operations and equipment: – acid dissolving tank, – extraction t
Slide 30: Management, Board and Advisors
Canada Rare Earth Corporation MANAGEMENT, BOARD AND ADVISORS Management and Board of Directors Tracy A. Moore CEO & Director Corporate finance in 20 countries Peter Shearing COO & Director Broad international experience in electronics and high-tech manufacturing Chris F. Goodman Leader of South Comm
Slide 31: Capital Structure
Canada Rare Earth Corporation CAPITAL STRUCTURE Directors, Sr. Management, Advisors Other Basic and & Strategic Partners Fully Diluted 61,650,000 Shares 131,366,000 193,016.000 (32%) Options 17,950,000 - 17,950,000 Warrants 9,000,000 - 9,000,000 88,600,000 Total 131,366,000 219,966,000 (40%) Trading
Slide 32: Vancouver Office Contact Information
Canada Rare Earth Corporation Vancouver Office Contact Information 15th Floor – 1040 West Georgia St. Tracy A. Moore, CEO & Director Vancouver, BC tmoore@canadarareearth.com V6E 4H1 Peter Shearing, COO & Director (+1) 604-638-8886 pshearing@canadarareearth.com Website www.canadarareearth.com Corpora
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