Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Global Rare Earth Industry Association (GloREIA) Conference 2019
25 slides from Arafura Rare Earths's conference presentation, Jun 27, 2019
Slide 1: ASX Announcement: Investor Presentation at GloREIA Conference
ASX Announcement Investor Presentation at the Global Rare earth Industry Association Conference 27 June 2019 For personal use only Arafura Resources Limited (ASX:ARU) (Arafura or the Company) is pleased to attach a copy of the presentation for the Global Rare earth Industry Association (GloREIA) Con
Slide 2: Emerging as Australia's Next Sustainable Supplier of NdPr
For personal use only Arafura Resources Limited (ASX:ARU) “Emerging as Australia’s Next Sustainable Supplier of NdPr” June 2019 Global Rare Earth Industry Association (GloREIA)
Slide 3: Agenda
Agenda 22 For personal use only 1. Who we are 2. Resource, Project, Environmental 3. Project Metrics & Financials 4. Technology 5. Markets & Funding 6. Timeline Arafura Resources Limited (ASX:ARU) June 2019
Slide 4: Important Notice – Disclaimer
Important Notice – Disclaimer 3 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 conju
Slide 5: Important Notice – Disclaimer (Ore Reserves, Mineral Resources)
Important Notice – Disclaimer 4 For personal use only Ore Reserves The information in this presentation that relates to Ore Reserves is extracted from Arafura’s ASX announcement dated 7 February 2019 (Nolans Project Definitive Feasibility Study) available to view at www.asx.com.au and was completed
Slide 6: Corporate Snapshot
Corporate Snapshot 5 For personal use only Capital Structure ASX Code ARU ASX Share Price (17 June 19) $0.125 Shares on Issue 781m Market Capitalisation $97.6m 12 Month Liquidity $39.9m Cash $7.9m Debt Nil Enterprise Value $89.7m ▪ Arafura Resources Limited (Arafura) is an ASX-listed company focused
Slide 7: Nolans DFS Complete
Nolans DFS Complete 6 For personal use only ▪ Confirms Nolans as a world class NdPr project ▪ Annual NdPr production 4,357 tonnes p.a. ▪ Ultra-low cost producer at US$25.94/kg NdPr ▪ Robust economics with average EBITDA A$377m p.a., NPV10 A$729m, IRR 17.43% ▪ Highly leveraged to NdPr (96% of RE reve
Slide 8: Long Life Asset
Long Life Asset 7 For personal use only RESOURCES TONNES (m) RARE EARTHS TREO % PHOSPHATE P2O5 % NdPr Enrichment % 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. 1.0% TREO cut-off grade. Numbers may not compute exactly due
Slide 9: 100% Australian Domiciled Project
100% Australian Domiciled Project 8 For personal use only ▪ Tailings and process residues, permanent disposed at site. ▪ Stuart Highway is 10 km east. ▪ Six engineered cells to store LOM residue production of ▪ Alice Springs railyard, airport and other services are 135 km south. 20 million tonnes. ▪
Slide 10: Environmental Approval Secured
Environmental Approval Secured 9 For personal use only December 2017 the Northern Territory EPA May 2018 the Australian Government May 2016 Arafura lodged the EIS recommended approval approved the Project Northern Territory Environment Protection Authority (EPA) Recommends Environmental Approval “Th
Slide 11: Sustainable supply is our value
Sustainable supply is our value 10 For personal use only Extensive community and stakeholder consultation Waste management plan tailings and residue facility Assessing impact from mining, extraction and transport corridor Social license Surface water & groundwater to operate management plans Biodive
Slide 12: DFS Completed February 2019
DFS Completed February 2019 11 For personal use only 23 year mine life 4,357 tonnes NdPr p.a. EBITDA A$377m p.a. Ultra low OPEX of US$25.94/kg NdPr Capital payback in year 5 Highly leveraged to NdPr price Refer ASX announcement 7 February 2019: Nolans Project Definitive Feasibility Study Arafura Res
Slide 13: Process Flowsheet Supported by Successful Pilot
Process Flowsheet Supported by Successful Pilot 12 For personal use only Arafura Resources Limited (ASX:ARU) June 2019
Slide 14: Technology Program
Technology Program 13 For personal use only Phase 1 Beneficiation 5,000 kg high- phosphate concentrate Phase 2 >82% NdPr, >90% Phosphate Phase 7 P2O5 recovery Extraction Rare Earth Beneficiation Pilot Plant Merchant grade Separation phosphoric acid Design has suitable for advanced fertilizer use
Slide 15: NdPr Market Opportunity
NdPr Market Opportunity 14 For personal use only ▪ Underlying demand for NdFeB magnets across all applications is forecast to grow by 6% p.a. over the period to 2030 ▪ NdFeB demand growth for EV applications is more dramatic and forecast to grow by 24% p.a. ▪ Supply-demand balance achieved through d
Slide 16: Offtake and Project Funding Discussions Underway
Offtake and Project Funding Discussions Underway 15 For personal use only ▪ Offtake agreements to underpin project funding ▪ Customer engagement targeted at NdPr users not aligned with China 2025 strategy ▪ Japan – NdFeB magnet manufacturers ▪ Europe & Korea – automotive, OEMs, electronics ▪ China –
Slide 17: Project Funding Strategy
Project Funding Strategy 16 For personal use only ▪ Arafura looking to secure a A$1,146m(1) in new funding to execute the Nolans Project ▪ Potential sources of funding include equity, debt, JV and/or project selldown with a strategic investor ▪ DFS completion and environmental approval are critical
Slide 18: Strong News Flow
Not for release to US wire services or distribution in the United States of America Strong News Flow 17 For personal use only ▪ Native Title Agreement. ▪ Mining Lease. ▪ Progress for product offtake agreements and project funding. ▪ Drilling and metallurgical results. ▪ Contractor appointment, secur
Slide 19: Sustainable Supply Chain Emerging
Sustainable Supply Chain Emerging 18 For personal use only ▪ Traditional supply chains acting as links that connect inputs to outputs is no longer acceptable. Downstream manufacturing (automotive & electronics) is demanding responsible upstream mining operations. ▪ Commodities are increasingly split
Slide 20: Contact
For personal use only Contact: Level 3, 263 Adelaide Terrace Perth, WA, 6000, Australia T: +61 8 6210 7666 E: arafura@arultd.com June 2019 GloREIA Presentation
Slide 21: Appendices
For personal use only 20 Appendices Arafura Arafura Resources Limited Resources Limited (ASX:ARU) (ASX:ARU) June 2019
Slide 22: Experienced Board
Experienced Board 21 For personal use only MARK SOUTHEY CHRIS TONKIN NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR Mark Southey has previously held senior executive Chris Tonkin has over 35 years’ experience as a senior positions with Honeywell and ABB both in Australia and business executive with a
Slide 23: Experienced Management
Experienced Management 22 For personal use only RICHARD BRESCIANINI PETER SHERRINGTON GENERAL MANAGER EXPLORATION & CHIEF FINANCIAL OFFICER & COMPANY DEVELOPMENT SECRETARY Richard has over 30 years’ experience in the minerals Peter commenced employment with Arafura in 2008 as industry. He worked wit
Slide 24: Indicative Production Timeline
Indicative Production Timeline 23 For personal use only Estimates of times are indicative only and are subject to change Arafura Resources Limited (ASX:ARU) June 2019
Slide 25: Supply & Demand Balance
Supply & Demand Balance 24 For personal use only ▪ China continues to dominate the global supply chain being the world's largest producer accounting for about 80% of NdPr for global NdFeB magnet production ▪ Supply reforms, industry consolidation and higher environmental standards will constrain Chi
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