Australian Rare Earths Limited · ASX:AR3
Australian Rare Earths — Investor Presentation (November 2021)
17 slides from Australian Rare Earths's investor presentation, Nov 16, 2021
Slide 1: Australia's Emerging Rare Earth Ionic Clay Project
Australia’s Emerging For personal use only Rare Earth Ionic Clay Project ASX:RMS Investor Presentation - November 2021 Rick Pobjoy Director ASX: AR3 AUSTRALIAN RARE EARTHS LIMITED: | November 2021 ASX: AR3 1 1
Slide 2: Disclaimer & Important Information
DISCLAIMER & IMPORTANT INFORMATION Australian Rare Earths Limited (‘AREL’ of the ‘Company’) does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document. The opinions and recommendations in this p
Slide 3: A Strong Corporate Start with Growing Capability
A STRONG CORPORATE START WITH GROWING CAPABILITY Shares 110.7m Shareholders ACORN CAPITAL LTD 14% For personal use only Major 6.0m @$0.30 Capital Structure Options TOO UP HOLDINGS PTY LTD 13% 6.6m @$0.45 BEECHCREST INVESTMENTS PTY LTD 13% Share Price (12th November) $0.87 Market Capitalisation (12th
Slide 4: Led by a Highly Experienced and Diversified Team
LED BY A HIGHLY EXPERIENCED Rick Pobjoy Executive Director AND DIVERSIFIED TEAM • • Geologist with over 25 years experience in minerals exploration Specialist in sedimentary hosted deposits, from definition to development • Founding shareholder of AR3 For personal use only Bryn Jones Non-exec Direct
Slide 5: The Koppamurra Project Is a Unique Opportunity
THE KOPPAMURRA PROJECT IS A UNIQUE OPPORTUNITY The Market AR3 For personal use only Rare earth elements hosted in ionic adsorption clays are extremely Only listed rare earth ionic clay project located in Australia, South Resource rare outside China and Myanmar Australia is a Tier 1 mining jurisdicti
Slide 6: Tier 1 Prospective and Development Jurisdiction
TIER 1 PROSPECTIVE AND DEVELOPMENT JURISDICTION • ~4,000km² of prospective tenure in South Australia and Victoria For personal use only • Historic drilling data was used to demonstrate regional extent of the mineralisation • Rare earths found in the shallow clay layer deposited onto a limestone base
Slide 7: A Maiden Resource with Extensive Upside Potential
A MAIDEN RESOURCE WITH EXTENSIVE UPSIDE POTENTIAL Koppamurra Mineral Resource Estimate - April 2021 For personal use only Magnet Rare Earths Prospect Tonnes TREO Pr6O11 Nd2O3 Tb4O7 Dy2O3 Mt ppm ppm % TREO ppm % TREO ppm % TREO ppm % TREO Inferred Yellow Tail 10.0 903 39.8 4.4% 156.9 17.4% 4.3 0.5% 2
Slide 8: Continued Drilling Is Building Confidence in the Resource
CONTINUED DRILLING IS BUILDING CONFIDENCE IN THE RESOURCE • 8000m drilling program commenced on 6th October to confirm For personal use only regional prospectively and confidence level of existing Resource, working towards the estimation of an Indicated Mineral Resource • 270 holes completed for ~4,
Slide 9: A Positive Start to Community Presence and Communication
A POSITIVE START TO COMMUNITY PRESENCE AND COMMUNICATION • Permanent Naracoorte Office and Warehouse For personal use only established to foster ongoing community information sharing and support • Planning with the community to improve drainage on agricultural land during progressive rehabilitation
Slide 10: Ionic Clay Rare Earth Projects Are Inherently Lower Risk and Value Accretive
IONIC CLAY RARE EARTH PROJECTS ARE INHERENTLY LOWER RISK AND VALUE ACCRETIVE Ionic Clays (incl’g AR3) Hard Rock For personal use only Location • Dominated by China and Myanmar • Majority in China, other projects in USA and Australia Rare Earth Assemblage • Contains both light (Pr, Nd) and heavy (Tb,
Slide 11: Appendices
For personal use only APPENDICES AUSTRALIAN RARE EARTHS LIMITED: | November 2021 ASX: AR3 11
Slide 12: Why Invest in Australian Rare Earths?
WHY INVEST IN AUSTRALIAN RARE EARTHS? For personal use only Unique asset with significant growth upside, located in a Low-cost exploration, well-funded to strategic Tier 1 mining jurisdiction increase the volume and quality of the Resource Partnering with the community in a responsible, transparent,
Slide 13: Four Rare Earth Elements Represent 90% of the Market Value
FOUR RARE EARTH ELEMENTS REPRESENT 90% OF THE MARKET VALUE • Rare earth elements include the 15 lanthanides plus scandium and yttrium End uses Share by volume Share by value For personal use only • REEs are used in many high tech applications, generally in small volumes but critical to performance •
Slide 14: Effectively All Terbium and Dysprosium Is Supplied from China
EFFECTIVELY ALL TERBIUM AND DYSPROSIUM IS SUPPLIED FROM CHINA • Neodymium and Praseodymium is mined from multiple global • Dysprosium is considered highly critical by the US and European For personal use only sources, Terbium and Dysprosium is sourced almost entirely from governments ionic clays in
Slide 15: While Demand for Rare Earths Is Expected to Double by 2030
WHILE DEMAND FOR RARE EARTHS IS EXPECTED TO DOUBLE BY 2030 • Neodymium iron boron (NdFeB) is the strongest Electric vehicles use Permanent magnet direct- permanent magnet commercially available (energy between 1-2kg of NdFeB, Wind drive wind turbines For personal use only product /m3) - crucial for
Slide 16: Rare Earth Permanent Magnets Are Vital for Electric Vehicles
RARE EARTH PERMANENT MAGNETS ARE VITAL FOR ELECTRIC VEHICLES Magnet rare earth prices are leveraged to the EV thematic – each passenger EV requires 1-2kg of NdFeB For personal use only Adamas estimate 6,500 tonnes of NdFeB magnets were used in 5 million new EV traction motors sold in 2020, as well a
Slide 17: Rare Earth Permanent Magnets Are Vital for Wind Turbines
RARE EARTH PERMANENT MAGNETS ARE VITAL FOR WIND TURBINES Magnet rare earth prices are also leveraged to increasing deployment of wind power For personal use only • NdFeB magnets are increasingly used in wind generators due to power-density properties Forecast new wind energy deployments (GW) • Perma
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