Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Investor Presentation (October 2020)
26 slides from Arafura Rare Earths's investor presentation, Oct 8, 2020
Slide 1: ASX Announcement: Investor Presentation - Amvest Webinar
ASX ANNOUNCEMENT INVESTOR PRESENTATION- AMVEST WEBINAR 8 October 2020 For personal use only Arafura Resources Limited (ASX:ARU) (“Arafura” or the “Company”) is pleased to attach a copy of the presentation which was used as the basis of the webinar hosted by Amvest Capital. Amvest is a New York City
Slide 2: North American Investor Update, Amvest Webinar
7/10/2020 North American For personal use only Investor Update Amvest Webinar 7 October 2020 (ASX:ARU) 1
Slide 3: For personal use only
7/10/2020 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 conjunction with and full r
Slide 4: Arafura & the Nolans Project
7/10/2020 Arafura & the For personal use only Nolans Project (ASX:ARU) 3
Slide 5: Corporate Snapshot
7/10/2020 Corporate Nolans world class NdPr project – Capital Structure Snapshot DFS completed February 2019 ASX Code ARU For personal use only NdPr is the key input for high ASX Share Price (6 October) $0.090 performance NdFeB permanent Shares on Issue 1,168m magnets Market Capitalisation* $89.92m
Slide 6: Nolans NdPr Project - Globally Strategic
7/10/2020 Nolans NdPr Project Globally Strategic For personal use only 100% Australian Domiciled (ASX:ARU) As announced on 16 March 2020 5
Slide 7: Nolans is Shovel Ready
7/10/2020 Nolans is 1 DFS completed 2019 “Shovel Ready” 2 Federal & NT environment approvals secured For personal use only 3 Native Title Agreement executed 4 Mining Licence granted 5 Updated Ore Reserves & Life of Mine 6 Completion of Indigenous Engagement Strategy 7 Clough Worley joint venture for
Slide 8: Critical Minerals Supply - a Global Issue
7/10/2020 Critical Minerals Supply – a Global For personal use only issue (ASX:ARU) 7
Slide 9: Global Supply Chain
Global Supply Chain 7/10/2020 Ore Concentrate Oxide Metal Alloy Magnet Component EV For personal use only Market Value x 10x 100x 1000x CHINA Arafura’s Alternative Supply Chain China currently exerts control over Arafura plans to produce Oxide in Nolans offtake strategy focused on Governments around
Slide 10: Rest of World's Critical Minerals Initiatives
Rest of World’s 7/10/2020 2050 NET-ZERO 2060 CARBON EMISSIONS NEUTRAL TARGET TARGET Critical Minerals Europe multiple initiatives to remove China has new 5- year plan with Initiatives materials supply emphasis on For personal use only risks for future renewables, e- deployment of low mobility & carb
Slide 11: Australia's Critical Minerals Initiatives
7/10/2020 Australia’s 1 Critical Minerals MARCH 2019 For personal use only Austrade Australian Critical 2 Minerals Prospectus and Initiatives NOVEMBER 2019 NAIF-EFA co-investment barriers Australia’s Critical Minerals Strategy 3 lifted NOVEMBER 2019 EFA mandate via $4.4 bn 4 Defence Export Facility
Slide 12: Nolans a Strategic Resource
7/10/2020 Nolans a Strategic Globally strategic and 100% Australian domiciled Sound project economics with 39-year mine life Resource Ore to oxide at single site with approved waste For personal use only management plan Nolans aims to supply Phosphoric acid product places Nolans in a unique 5-10% of
Slide 13: The Offtake Strategy
7/10/2020 The Offtake Sales Distribution Targets Strategy For personal use only Region Country Customer Target Market NdPr (tpa) Status China JingCi NdFeB Magnet 700 MOU, drafting Offtake Agreement Customer engagement at varying levels (MoUs China Baotou and term sheets) and targeted at NdPr users C
Slide 14: Project Financing
7/10/2020 Project For personal use only Financing (ASX:ARU) 13
Slide 15: Project Funding Strategy
7/10/2020 Project Funding Strategy Arafura looking to secure US$726m to meet CAPEX requirements for the Nolans project For personal use only Potential sources of funding include equity, debt, JV and/or project selldown with a strategic investor DFS completion, environmental approval and ML grant are
Slide 16: The ECA-led Funding Strategy
7/10/2020 The ECA-led Nolans is a strategic Australia based Funding NdPr project For personal use only production aligned with forecast supply Strategy shortages in mid 2020s Product wholly aligned with key ECA mandates of e-mobility and renewables Debt led funding structure, targeting ECA funding E
Slide 17: Targeted Funding Structure
7/10/2020 Targeted Funding Offtakers Structure For personal use only ECA Loans/ ECA debt will be Guarantees Nolans Project critical but not the entire funding solution NAIF Commercial Debt EFA & Other Equity Portfolio of funding Instruments sources Offtake, debt and Strategic Equity strategic equity
Slide 18: Current Focus
7/10/2020 Current For personal use only Focus (ASX:ARU) 17
Slide 19: Current Focus
7/10/2020 Current Focus For personal use only Prioritising project Provision of sample Escalate engagement Continued dialogue work streams against product & advancing with financiers & with Australian & other cash conservation terms sheets with end financial advisors for governments seeking prioriti
Slide 20: Indicative Production Timeline
7/10/2020 Indicative Production Timeline For personal use only Targeting Front-End Engineering & Design (FEED) to be fully funded prior to commencement Timeline subject to change due to impact by COVID-19 on funding and offtake activities Execution Early Contractor Enabling Works Construction Produc
Slide 21: Contact Information
7/10/2020 Contact Information For personal use only Level 6, 432 Murray St Perth WA 6000 Australia +61 8 6370 2800 arafura@arultd.com www.arultd.com (ASX:ARU) 20
Slide 22: Appendices
7/10/2020 Appendices For personal use only (ASX:ARU) 21
Slide 23: Experienced Board
7/10/2020 Experienced Board For personal use only MARK SOUTHEY CHRIS TONKIN QUANSHENG ZHANG CATHY MOISES GAVIN LOCKYER CHAIRMAN NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR MANAGING DIRECTOR Mark Southey has previously held Chris Tonkin has over 35 years’ Quansheng Zhang hold
Slide 24: Experienced Management
7/10/2020 Experienced Management For personal use only RICHARD BRESCIANINI PETER SHERRINGTON LLOYD KAISER BRIAN FOWLER STEWART WATKINS GENERAL MANAGER CHIEF FINANCIAL OFFICER & GENERAL MANAGER GENERAL MANAGER GENERAL MANAGER EXPLORATION & BUSINESS COMPANY SECRETARY SALES & MARKETING NT & SUSTAINABIL
Slide 25: Long Life Asset
7/10/2020 Long Life Asset 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% TREO cut-off grade. Numbers may not compute exactl
Slide 26: Robust Economics
7/10/2020 Robust Economics DFS in 2019 and Ore For personal use only Reserves updated 2020 Capital cost A$1006m Low cost producer at US$23.71/kg NdPr (current price US$47.8/kg) 39-year mining inventory with expansion potential Only Australian NdPr- focused project that is shovel ready As announced o
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