Slide 1: Arafura Resources - Investorium.tv
For personal use only Arafura Resources Investorium.tv Neil Graham GM - Operations 12th December 2011
Slide 2: Disclaimer - Important Notice
Disclaimer Important Notice For personal use only 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: Introduction to Arafura
Introduction to Arafura Our Vision: ‘ To be the recognised leading producer of rare Corporate Summary For personal use only earths for users worldwide’ Australian Public Company – formed 1997 ‘All Australian’ Business Model – mining, chemical Listed on ASX in 2003 (code ARU) processing and o
Slide 4: Nolans Project
Nolans Project Nolans Project is world scale and strategically significant ……………. For personal use only One of only three well advanced large scale projects Australia – low sovereign risk and world class regulatory environment Excellent locations; Nolans mine is remote, but not isolated, and i
Slide 5: Nolans Project – Globally Significant
Nolans Project – Globally Significant High potential value, long life, multiple revenue streams with upside potential …. For personal use only Annual Production REO Rare Earths Oxides 20,000 t Phosphate Product 80,000 t (as P2O5) (approximately) Financial Evaluation October 2010 UO4 Uranium Oxide 15
Slide 6: Project History and Timeline
Project History and Timeline Already a long way through a lengthy industry For personal use only development timeline, one of the few advanced Current world scale projects ………… Status Exploration Prefeasibility Study Bankable Feasibility Study Construction Operations Complete Complete In progress ta
Slide 7: Nolans Project Timeline for 2012
Nolans Project Timeline for 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2012 For personal use only Drill Program Mine Planning Technology Demonstration - Beneficiation - RE Processing Study Engineering and Estimating - Mine and Beneficiation - RE Complex Finalise Project Finance BFS Report Finalisation Regulato
Slide 8: Arafura's approach to the Nolans Project
For personal use only Arafura’s approach to the Nolans Project Create value, de-risk and use world class expert assistance……………. Engage world class experts to assist in all aspects of the Nolans Project Focus on value-creating rare earth oxide production in industry chain Standard design and l
Slide 9: Nolans Bore 2011 Expansion Drilling Program
Nolans Bore 2011 Expansion Drilling Program Major program (52km) - Initial results confirm the presence of additional mineralisation ……… For personal use only Sampling facilities Drill rig Nolans Bore Drill rig 500m Drill rigs Drill rig N Page 9
Slide 10: Building a Sustainable Business for the Future
Building a Sustainable Business for the Future Arafura is ‘going the extra mile’ to ‘get it right’ first time and ensure success …… For personal use only Australian developed & proven flow sheet – not reliant on others Additional flowsheet demonstration programs at scale are underway to de-risk
Slide 11: Demonstration Plant
Demonstration Plant The flow sheet has been proven at pilot scale and is now undergoing final demonstration …. For personal use only Mixed REO Carbonate Production 2009 Water Leach Piloting 2009 Sulphation Baking 2009 ANSTO Sydney ANSTO Sydney ANSAC Bunbury Gypsum from HCl Regeneration Demonstration
Slide 12: Global Strategic Importance - A New Supply Era
Global Strategic Importance - A New Supply Era The industry challenge is for the supply side to keep up with demand growth creating an For personal use only opportunity for a new supply era involving new western suppliers ….. REO Supply by Era Global REO Production China USA All Other 2009 Australia
Slide 13: Supply and Demand
Supply and Demand For personal use only Total Rare Earth Oxide Global REO Supply - Demand Balance % Cap. Util. (REO) supply growth 400,000 Metric tons 200% does not keep up with demand growth rates 350,000 180% in any year! Capacity utilizations 300,000 160% bottoms out in 2015 at 107% 250,000 1
Slide 14: Price Trends
Price Trends Prices in real terms have returned to long term levels prior to low price ‘Chinese era’ …… For personal use only 1990 to 2005 atypical low priced era driven by unsustainable low cost Chinese production 2006 prices begin to rise with first Chinese export quotas 2007 to 2008 prices
Slide 15: Target Customer Program
Target Customer Program Interest in Arafura’s REO products is high For personal use only Arafura has identified target customers worldwide with whom it would like to develop mutual long term relationships, key geographical regions include Japan, Korea, Europe and USA First LOI already signed w
Slide 16: Rare Earth Project Comparison
Rare Earth Project Comparison Arafura is undervalued compared to industry peers …. For personal use only Exploration Prefeasibility Study Bankable Feasibility Study Construction Operations Northern Minerals Greenland Minerals & Arafura (20 kt p.a.) Molycorp Molycorp (ASX: NTU) Energy (40 kt p.a.) (A
Slide 17: Investment Opportunity
Investment Opportunity For personal use only Funding requirements: Current cash on hand approximately A$45 million with no debt Requirements for next 12 months are approximately an additional A$70 million to complete the BFS and fund completion of the demonstration plant ahead of project financi
Slide 18: Summary
Summary Robust and well regarded ‘All Australian’ business model For personal use only World scale Nolans Project with high value creation potential Nolans Project well advanced and likely to be one of very few new supply sources this decade – with upside potential Significant government and
Slide 19: Experienced Management Team
For personal use only Experienced Management Team Dr. Steve Ward Gavin Lockyer Gary Cianfichi Richard Brescianini Neil Graham John Ganser Managing Director & Company Sec & CFO Head of Sales & GM – Exploration & GM – Operations GM – Projects CEO Age 44 Marketing Development Age 47 Age 55 Age 56 Age 5
Slide 20: Thank you
For personal use only Thank you