Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Shareholder Meeting (October 2019)
17 slides from Arafura Rare Earths's shareholder meeting presentation, Oct 17, 2019
Slide 1: Emerging as Australia's Next NdPr Producer
For personal use only Arafura Resources Limited (ASX:ARU) Emerging as Australia’s Next NdPr Producer October 2019 Annual General Meeting
Slide 2: Important Notice – Disclaimer
Important Notice – Disclaimer 2 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 3: Rare Earths are now in the Popular Press
Rare Earths are now in the Popular Press 3 For personal use only Arafura Resources Limited (ASX:ARU) October 2019
Slide 4: Made in China 2025 & Alternative Supply Chain
Made in China 2025 & Alternative Supply Chain 4 For personal use only Ore Concentrate Oxide Metal Alloy Magnet Component EV Government recognition of the strategic significance of NdPr can enable multilateral Mine to Motor supply chain solutions Arafura Resources Limited (ASX:ARU) October 2019
Slide 5: Arafura Corporate Snapshot
Arafura Corporate Snapshot 5 For personal use only Capital Structure ASX Code ARU ASX Share Price (30 Sep) $0.081 Shares on Issue 1,055m Market Capitalisation (30 Sep) $85.5m 12 Month Liquidity $50.9m Cash (30 Jun*) $28.6m Debt Nil Enterprise Value (30 Jun*) $76.6m ▪ Investment by Talaxis Ltd, a mem
Slide 6: Definitive Feasibility Study (DFS) Completed
Definitive Feasibility Study (DFS) Completed 6 For personal use only ▪ DFS completed February 2019 confirming Nolans as a world class DFS NdPr project Complete ▪ Capex US$726m, low cost producer at De-Risked Permitting in Final US$25.94/kg NdPr DFS Stages ▪ Long-life asset – 23-year mine life The ba
Slide 7: 100% Australian Domiciled in the NT
100% Australian Domiciled in the NT 7 For personal use only ▪ Separation plant re-located to site during the year ▪ DFS includes fully costed permanent disposal and rehabilitation of tailings and process residues at site ▪ Environmental approvals secured ▪ Able to provide customers with product trac
Slide 8: Sustainable Supply is Our Value
Sustainable Supply is Our Value 8 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 and groundwater to Operate management plans Biodiv
Slide 9: Funding to Production
For personal use only 9 Funding to Production Arafura Resources Limited (ASX:ARU) October 2019
Slide 10: Product Offtake
Product Offtake 10 For personal use only Proportion of revenue for rare earth products only ▪ Customer engagement targeted at NdPr users not aligned with China 2025 strategy o Japan – NdFeB magnet manufacturers ▪ U.S. emerging as an offtake opportunity o Europe & Korea – automotive OEMs and ▪ India
Slide 11: Project Funding Strategy
Project Funding Strategy 11 For personal use only ▪ Arafura looking to secure US$726m to meet CAPEX requirements for 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 e
Slide 12: Current Activities
For personal use only 12 Current Activities Arafura Resources Limited (ASX:ARU) October 2019
Slide 13: 2019/20 Activities
2019/20 Activities 13 For personal use only In addition to the funding and offtake activities: ▪ Drilling and metallurgical work in progress ▪ Targeted exploration and metallurgical program aims to potentially increase current mine life of 23 years ▪ Opportunity to potentially reduce very low estima
Slide 14: 2019/20 Activities
2019/20 Activities 14 For personal use only October 2019 – Drilling at Nolans Bore – hole NBDH1105 Northern Territory Senator Sam McMahon inspects drill core at Nolans Bore Drill core sample from Nolans Bore used in flotation variability program October 2019 – Flotation variability test work at Nagr
Slide 15: Indicative Production Timeline
Indicative Production Timeline 15 For personal use only Arafura Resources Limited (ASX:ARU) October 2019
Slide 16: Thank You
For personal use only Thank You October 2019 Annual General Meeting
Slide 17: Long Life Asset
Long Life Asset 17 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
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