Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — 121 Mining Investment London 2019
29 slides from Arafura Rare Earths's conference presentation, Nov 20, 2019
Slide 1: ASX Announcement: Presentation – 121 Mining Investment London
ASX Announcement Presentation – 121 Mining Investment London 20 November 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 121 Mining Investment Conference in London. 121 Mining Investment London is held o
Slide 2: Emerging as Australia's Next NdPr Producer
For personal use only Arafura Resources Limited (ASX:ARU) Emerging as Australia’s Next NdPr Producer November 2019 121 Mining Investment London
Slide 3: 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 4: Arafura Corporate Snapshot
Arafura Corporate Snapshot 3 For personal use only Capital Structure ASX Code ARU ASX Share Price (30 Sept) $0.086 Shares on Issue 1,055m Market Capitalisation (30 Sept) $90.7m 12 Month Liquidity $58.5m 6 Month Liquidity $52.5m Cash (30 Sept*) $26.4m Debt Nil Enterprise Value (30 Sept*) $64.3m ▪ Nol
Slide 5: NdPr Market Opportunity
For personal use only 4 NdPr Market Opportunity Arafura Resources Limited (ASX:ARU) November 2019
Slide 6: NdPr Market Opportunity
NdPr Market Opportunity 5 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 de
Slide 7: NdPr Magnet Power Efficiency & Deprival Value
NdPr Magnet Power Efficiency & Deprival Value 6 For personal use only Modelled effect of increase in NdPr price, Permanent Magnet (PM) vs Induction Motor and incremental Li-ion Battery Pack ▪ Chevrolet Bolt: 150 kW permanent magnet (PM) motor with 60 kWh lithium-ion battery pack.1 ▪ PM motor cost ba
Slide 8: Rare Earths are now in the Mainstream Press
Rare Earths are now in the Mainstream Press 7 For personal use only Arafura Resources Limited (ASX:ARU) November 2019
Slide 9: China's Evolving Integrated NdPr Supply Chain – Enables 2025 EV Strategy
China’s Evolving Integrated NdPr Supply Chain – Enables 2025 EV Strategy 8 For personal use only Ore Concentrate Oxide Metal Alloy Magnet Component EV 2010 95% 95% 90% 80% 85% 80% 2018 70% 70% 85% 90% 90% 90% Market x 10x 100x 1000x Value ▪ China is the only country with a fully integrated Mine to M
Slide 10: Rest of World Alternative Supply Chain
Rest of World Alternative Supply Chain 9 For personal use only Ore Concentrate Oxide Metal Alloy Magnet Component EV ▪ European auto industry employs 13.8 million people which equates to 6.1% of the EU workforce and 11.4% of all manufacturing jobs (“Electric cars sparks jobs fears in Germany’s auto
Slide 11: Nolans Project
For personal use only 10 Nolans Project Arafura Resources Limited (ASX:ARU) November 2019
Slide 12: Definitive Feasibility Study (DFS) Completed
Definitive Feasibility Study (DFS) Completed 11 For personal use only ▪ DFS completed February 2019 confirming Nolans as a world class NdPr project DFS Complete ▪ CAPEX US$726m, low OPEX producer at US$25.94/kg NdPr Permitting De-Risked in Final DFS ▪ Long-life asset – 23-year mine life Stages based
Slide 13: 100% Australian Domiciled in the NT
100% Australian Domiciled in the NT 12 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 tra
Slide 14: Licence to Operate – Sustainable Supply
Licence to Operate – Sustainable Supply 13 For personal use only Extensive community and stakeholder consultation Waste management plan tailings and residue facility Assessing impact from mining, extraction and transport corridor Surface water and groundwater management plans Biodiversity studies on
Slide 15: Project Implementation
For personal use only 14 Project Implementation Arafura Resources Limited (ASX:ARU) November 2019
Slide 16: Product Offtake
Product Offtake 15 For personal use only Proportion of revenue for rare earth products only ▪ Customer engagement targeted at NdPr users not aligned with Made In China 2025 strategy o Japan – NdFeB magnet manufacturers ▪ U.S. emerging as an offtake opportunity o Europe & Korea – automotive OEMs and
Slide 17: Project Funding Strategy
Project Funding Strategy 16 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 18: Other Activities
Other Activities 17 For personal use only In addition to 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 estimated OP
Slide 19: Indicative Production Timeline
Indicative Production Timeline 18 For personal use only Arafura Resources Limited (ASX:ARU) November 2019
Slide 20: Thank You
For personal use only Thank You November 2019 121 Mining Investment London
Slide 21: Long Life Asset
Long Life Asset 20 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 22: Drilling & Metallurgical Program
Drilling & Metallurgical Program 21 For personal use only ▪ DFS completed in February 2019 included a mine life of 23 years based on Ore Reserves only but includes the costs of mining Inferred Resources within the LOM pit ▪ Targeted drilling and metallurgical program aims to substantially increase t
Slide 23: Drilling & Metallurgical Program
Drilling & Metallurgical Program 22 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 tes
Slide 24: DFS Completed February 2019
DFS Completed February 2019 23 For personal use only Refer ASX announcement 7 February 2019: Nolans Project Definitive Feasibility Study Arafura Resources Limited (ASX:ARU) November 2019
Slide 25: Process Flowsheet Supported by Successful Pilot
Process Flowsheet Supported by Successful Pilot 24 For personal use only Arafura Resources Limited (ASX:ARU) November 2019
Slide 26: Technology Program
Technology Program 25 For personal use only ✓Phase 1 Beneficiation 5,000 kg high- phosphate concentrate >82% NdPr, >90% ✓Phase 2 P2O5 recovery ✓Phase 7 Phosphate Rare Earth Extraction Beneficiation Pilot Plant Separation Fertilizer grade phosphoric acid Q4 CY2019 3% TREO losses to gypsum w
Slide 27: Supply & Demand Balance
Supply & Demand Balance 26 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
Slide 28: Experienced Board
Experienced Board 27 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 29: Experienced Management
Experienced Management 28 For personal use only RICHARD BRESCIANINI PETER SHERRINGTON GENERAL MANAGER EXPLORATION & CHIEF FINANCIAL OFFICER & COMPANY BUSINESS DEVELOPMENT SECRETARY Richard has over 30 years’ experience in the minerals Peter commenced employment with Arafura in 2008 as industry. He w
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