Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Shareholder Meeting (November 2015)
23 slides from Arafura Rare Earths's shareholder meeting presentation, Nov 19, 2015
Slide 1: 2015 Annual General Meeting
For personal use only 2015 Annual General Meeting November 2015 Arafura Resources Limited (ASX: ARU)
Slide 2: Disclaimer
DISCLAIMER For personal use only Important Notice This presentation contains certain statements which may constitute “forward-looking statements.” Such statements are only expectations or beliefs and are subject to inherent risks and uncertainties which could cause actual values, results or performa
Slide 3: Agenda
AGENDA For personal use only 1. Chairman’s Address 2. Formal Business 3. Managing Director’s Report 4. ECE Address by Mr Cungen Ding 5. Shareholder Questions Arafura Resources Limited (ASX: ARU) 3
Slide 4: Mr Ian Kowalick, Chairman
For personal use only Mr Ian Kowalick Chairman Arafura Resources Limited (ASX: ARU) 4
Slide 5: Formal Business
For personal use only Formal Business Arafura Resources Limited (ASX: ARU) 5
Slide 6: Resolutions
RESOLUTIONS For personal use only Accounts and Reports – To receive and consider the consolidated financial statements of the Company and its controlled entities for the year ended 30 June 2015 and the reports of the Directors and auditors for the financial year ended 30 June 2015. Resolutions 1 Rem
Slide 7: Formal Meeting Close
For personal use only Formal Meeting Close Presentation by Gavin Lockyer Managing Director Arafura Resources Limited (ASX: ARU)
Slide 8: 2014/2015 Company Highlights
2014/2015 COMPANY HIGHLIGHTS For personal use only Nolans Development Release of fully referenced Nolans Development Report in September 2014 Continued substantial reductions in operating & capital costs 7% and 16% respectively Commenced Environmental Impact Statement (EIS) after receipt of Terms of
Slide 9: 2014/2015 Rare Earths Market Update
2014/2015 RARE EARTHS MARKET UPDATE For personal use only Chinese Policy – May 2015 Abolished export duties and quotas Restricted exports to 9 designated ports Consolidate RE Production under 6 State-Owned hubs Imposition of RE resources tax on value of RE concentrates However Up to 40% of all NdPr
Slide 10: Arafura's View
ARAFURA’S VIEW For personal use only 12% Global demand for RE magnets forecast to grow at 10% p.a. 10% between 2015 and 2020 NdFeB Magnets 8% (Nd, Pr) Current prices not sustainable Market CAGR Mischmetal NiMH Battery (Ce, La) (La) Greater social call for 6% Polishing - Display, HDD development of a
Slide 11: Drivers for Rare Earth Magnets
DRIVERS FOR RARE EARTH MAGNETS For personal use only Current & forecasts for magnet growth industries 30% 2016-2020 Current 20% % CAGR 10% 0% HEV/PEV Global Light vehicle Electric AutoCatalysts Wind Turbine Automotive China Vehicles Major OEMs need to cut fleet emissions by 2020 to meet EU emission
Slide 12: Lower Costs – Viability & Financing
LOWER COSTS – VIABILITY & FINANCING For personal use only OPEX (A$/kg TREO) CAPEX (A$m) Aug 2012 $20.55 Aug 2012 $1,912 Sep 2014 Sep 2014 $15.67 $1,408 NDR NDR Jun 2015 $14.51 Jun 2015 $1,437 Nov 2015 $14.51 Nov 2015 $1,193 In a low commodity price and constrained capital environment it is imperativ
Slide 13: Project Approvals (1)
PROJECT APPROVALS (1) For personal use only Targeting Project approvals second half of 2016 EIS Terms of Notice of Environmental Environment Reference EIS Studies Intent Approval Issued Mineral Leases Native Title Indigenous Mineral Lease Granted & All Land Holders Negotiations Land Use Applications
Slide 14: Project Approvals (2)
PROJECT APPROVALS (2) For personal use only Environmental Impact Statement GHD appointed to lead EIS program Final EIS Terms of Reference received from EPA EIS studies well advanced with no major risks identified Land Access Agreement Intensify discussions following EIS submission Groundwater Extrac
Slide 15: EIS – Biodiversity Surveys
EIS – BIODIVERSITY SURVEYS For personal use only Black Footed Rock Wallaby Mulgara Great Desert Skink Arafura Resources Limited (ASX: ARU) 15
Slide 16: EIS – Baseline Monitoring
EIS – BASELINE MONITORING For personal use only 26 monitoring sites have been established on or around Nolans At these sites we are measuring natural radioactivity in soil, plants and in the air We also have 16 monitoring sites in creeks to measure water quality & flow information Many of these site
Slide 17: Stakeholder Consultation
STAKEHOLDER CONSULTATION For personal use only Meeting with stakeholders since 2008 Stakeholder consultation has escalated this year as information from EIS studies becomes available and Nolans progresses towards a final investment decision Fact sheets freely available to interested parties Arafura
Slide 18: Other Work – Process Optimisation
OTHER WORK – PROCESS OPTIMISATION For personal use only Offshore RE Separation Plant Non-binding LOI signed with South Korea-headquartered OCI Company To form a JV RE Separation processing facility in South Korea Arafura continuing to assess offshore options for RE Separation Plant Chinese Flowsheet
Slide 19: Growth in Mineral Resources
GROWTH IN MINERAL RESOURCES For personal use only Tonnes Rare Earths Tonnes Phosphate Uranium Resources (million) TREO % TREO P2O5 % U3O8 lb/t Measured 4.9 3.2 158,000 13 0.54 Indicated 30 2.7 816,000 12 0.44 Inferred 21 2.3 489,000 10 0.36 TOTAL 56 2.6 1,462,000 12 0.42 1% TREO cut-off grade. Numbe
Slide 20: Looking Ahead
LOOKING AHEAD For personal use only EIS submission Q1 CY2016 targeting approval in 2016 Consider viability of flowsheet optimisation through Chinese test programs and partnerships Assess opportunities for commercialisation through further investigation of CAPEX & OPEX reduction opportunities, includ
Slide 21: Nolans Appeal
NOLANS APPEAL For personal use only Attribute Feature Advantage Location Northern Territory Low sovereign risk Resources Large, at surface, open Long-life, low-risk open cut mine at depth NdPr quotient Highest of all RE Positioned to supply high-growth, projects high-value magnet market Infrastructu
Slide 22: ECE Address by Mr Cungen Ding
For personal use only ECE Address by Mr Cungen Ding Arafura Resources Limited (ASX: ARU)
Slide 23: Thank You – Questions?
For personal use only THANK YOU Questions? Arafura Resources Limited (ASX: ARU)
Arafura Resources — Shareholder Meeting (November 2015) on 6ix