Vhm Limited · ASX:VHM

Vhm — H1 2024 Earnings Presentation

28 slides from Vhm's earnings presentation, Feb 27, 2024

  1. Slide 1: VHM Limited 1H FY24 Results Presentation

    VHM Limited 1H FY24 Results Presentation 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, pre

  2. 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

  3. Slide 3: VHM Limited (ASX:VHM) overview

    VHM Limited (ASX:VHM) overview Australian owned rare earths and mineral sands Corporate Snapshot mine and processing developer Market Cap1 Top 20 Shareholders GOSCHEN PROJECT3 210Mt @ 3.8% THM, MRE A$103.68 million Top 20: 34% 629Mt, 413Kt TREO, Zircon 21.4%, Rutile 9.7%, Ellison WA: 8.9% Mon 3.5%,

  4. Slide 4: Board and management team

    Board and management team Michael Sheridan BEc, LLB, LLM, GradDipAppFinInv Chief Financial Officer 30+ years’ operations and financial experience as executive, having worked at senior management levels in publicly listed companies, predominantly in the international resources sector (mining and oil

  5. Slide 5: Half year activities

    Half year activities1 Period ending 31 December 2023 Goschen Permitting Environment Effects Statement Mining Licence application Commercial Shenghe binding offtake agreement Research & Development funding Demerger transaction complete with transfer of four exploration licences Final land acquisition

  6. Slide 6: Goschen permitting pathway

    Goschen permitting pathway Approvals milestones achieved Primary Approval (EES)1 Secondary Approvals (Work Plans, Mining Licence)2 Q4 2023 Victorian Minister for Planning approved public exhibition for Goschen EES3 Exhibition stage: Public Submissions4 Monday 20 November 2023 – Wednesday 17 January

  7. Slide 7: Binding offtake agreement for Goschen products

    Binding offtake agreement for Goschen products Period ending 31 December 2023 Key offtake terms1  Memorandum of Understanding (MOU) relates to a dual product take or pay offtake agreement of REMC and zircon-titania HMC.  Shenghe has committed to purchase 60% of the REMC and HMC for each calendar y

  8. Slide 8: Commercial update

    Commercial update Period ending 31 December 20231 Research and Development (R&D) funding received  $4.5 million R&D refund from the Australian Taxation Office. 100% payment transaction received for four Victorian Exploration Licences  $1.3 million from former subsidiary VP Minerals Ltd, concluding

  9. Slide 9: Exploration Activities

    Exploration Activities Period ending 31 December 2023 The Company maintains its tenement holdings in North West Victoria to 2028, after renewing its four exploration licences during the period1. Note: (1) See ASX release dated 3 October 2023 9 Exploration

  10. Slide 10: Exploration Activities

    Exploration Activities Area 4 Orion Strandline - Maiden Probable Ore Reserve Added 11.5 Mt @ 5.6% THM to Company Probable Ore Reserve1. Within this Ore Reserve a high-grade mineable horizon of 2.6 Mt @ 9.6% THM exists at the top of the ore body 6m from surface, including:  245,500 tonnes of mineabl

  11. Slide 11: Exploration Activities

    Exploration Activities Maiden Mineral Resource estimate for Nowie Project Nowie Project is located 22 kilometres north of the flagship Goschen Project in North West Victoria. A new Inferred Mineral Resource estimate (MRE) of 16.4Mt @ 3.8% THM grade at Nowie1. Results include 6.4Mt @ 6.1% THM contain

  12. Slide 12: Community engagement and sponsorship

    Community engagement and sponsorship Period ending 31 December 20231 Social Education Local Industry  Swan Hill Housing Summit  Teacher Earth Science Education Program  Cross-Border Future Industry Workforce (TESEP) Forum - a Victoria and New South Wales  Swan Hill Rotary Club’s Kerang Art Show

  13. Slide 13: Goschen Project Overview

    Goschen Project Overview

  14. Slide 14: Goschen Project overview

    Goschen Project overview Process and product flowsheet Phase 1 – Base Plant Phase 1A – Hydromet Circuit Mining Screening Wet Concentrator Kiln Hydromet Circuit Flotation Circuit REMC Product Plant (WCP) Stockpile Heavy Mineral Concentrate Rare Earth Mineral Mixed Rare Earth Zircon-titania HMC Concen

  15. Slide 15: Goschen Project highlights

    Goschen Project highlights The DFS Refresh1 demonstrates the Goschen Project economics to be compelling 5Mtpa Goschen Project DFS Financial Metrics (Phase 1 and 1A) Pre-tax NPV10 (A$ m) 1,525 Pre-tax IRR 44% Payback from commencement of production (years) 2.8 5Mtpa 9.4ktpa Ore Reserve LoM (years) 20

  16. Slide 16: Capex is amongst the lowest of selected rare earth projects

    Capex is amongst the lowest of selected rare earth projects Oxide Carbonate Concentrate Arafura (Nolans) 1,680 ASM (Dubbo) 1,678 VHM (Goschen Ph 1 & 1A) 606 Goschen’s low development capex Hastings (Yangibana) 503 Peak (Ngualla) 434 Commercial Note: See peer comparison table for source data in Appen

  17. Slide 17: Ore Reserve peer comparison

    Ore Reserve peer comparison Selected Global Rare Earth and Mineral Sand Reserves  Monazite and Xenotime (% in-situ) vs. Zircon (% in-situ)  Bubble size denotes in-situ HM Tonnes (Mt) 0.40% Bubble size denotes in-situ HM tonnes 0.35% Goschen (Area 4 Z5) 0.30% % In-Situ Monazite and Xenotime 0.25% G

  18. Slide 18: Magnet rare earth oxide basket value peer comparison

    Magnet rare earth oxide basket value peer comparison Attractive proportion of valuable rare earth elements – heavy and light (US$/kg) 70 60 Dy Tb 50 US$ of magnet REO per kg of REO Nd Pr 40 30 20 10 0 Hastings VHM Astron Arafura Peak Yangibana Goschen Donald Nolans Ngualla Note: See peer comparison

  19. Slide 19: Hydromet Pilot Plant results demonstrate potential

    Hydromet Pilot Plant results demonstrate potential Exceptional recoveries meet specifications required by Western strategic offtake partners  Market leading recoveries achieved at ANSTO producing a high purity mixed rare earth carbonate (MREC) product  >97% critical light rare earths Nd/Pr Goschen

  20. Slide 20: Upcoming milestones

    Upcoming milestones Commence Public Finalise further offtake Secure arrangements Construction for Hearing stage of and strategic for a Final Investment Phase 1 subject to final Goschen EES Process partnerships Decision approvals Australian owned rare earths and mineral sands developer 20

  21. Slide 21: APPENDIX A Peer Comparison Data

    APPENDIX A Peer Comparison Data

  22. Slide 22: Project comparison table data for capex

    Project comparison table data for capex Name Project Product Plant type Plant Feed Annual Production Stage of Capital Cost Location Rate Development ($A) Arafura1 Nolans Oxide SX Facility 1 Mtpa 4.9ktpa DFS N.T. $1.680B ASM2 Dubbo Oxide SX Facility 1 Mtpa 1.5ktpa DFS N.S.W $1.678B VHM3 Goschen Conce

  23. Slide 23: Project comparison data table for Ore Reserve

    Project comparison data table for Ore Reserve % In-situ Titanium % Monazite % In-situ Commodity Reserve Material In-situ HM % Zircon % Rutile % In-situ % In-situ Minerals (rutile, Stage of Company Project Location % HM Grade & Xenotime Monazite & Product Classification tonnes (Mt) tonnes (Mt) Grade

  24. Slide 24: 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. $33

  25. Slide 25: APPENDIX B JORC Tables

    APPENDIX B JORC Tables

  26. Slide 26: 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

  27. Slide 27: Company Mineral Resources

    Company Mineral Resources 836.8Mt Mineral Resource estimate – at end of period 31 December 2023 Total Heavy Oversize THM Assemblage(4) Rare Earth Oxides Mineral Material In Situ THM Bulk Density Mineral Slimes material Area Resource TREO + (THM) >2mm Zircon Rutile Leucoxene Ilmenite Monazite Xenotim

  28. Slide 28: vhmltd.com.au

    vhmltd.com.au Level 11, 330 Collins Street, Victoria 3000 For further information contact: Ron Douglas Chief Executive Officer Ron.Douglas@vhmltd.com.au Carly O’Regan Executive General Manager Carly.Oregan@vhmltd.com.au

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