Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Shareholder Meeting (November 2016)
34 slides from Arafura Rare Earths's shareholder meeting presentation, Nov 18, 2016
Slide 1: Arafura Resources Annual General Meeting
For personal use only Arafura Resources Annual General Meeting November 2016 Arafura Resources Limited (ASX: ARU)
Slide 2: Agenda
Agenda For personal use only 1. Chairman’s Address 2. Formal Business 3. Managing Director’s Report 4. Shareholder Questions Arafura Resources Limited (ASX: ARU) 2
Slide 3: Chairman's Address
Chairman’s Address For personal use only Mr Ian Kowalick Chairman Arafura Resources Limited (ASX: ARU) 3
Slide 4: Formal Business
For personal use only Formal Business Arafura Resources Limited (ASX: ARU)
Slide 5: Items of Business
Items of Business For personal use only To receive and consider the consolidated Financial Statements for the year ended 30 June 2016. To receive and consider the consolidated financial statements of the The Financial Report,Company Director’s Report and its andentities controlled Auditor’s for theR
Slide 6: Resolution – Remuneration Report
Items of Business For personal use only Resolution 1 – Remuneration Report In accordance with the Notice of Meeting the resolution to be put before the members is to consider, and if thought fit, to pass the following non-binding resolution as an ordinary resolution: “That the Remuneration Report fo
Slide 7: Resolution – Re-election of Terry Grose as Director
Items of Business For personal use only Resolution 2 – Re-election of Terry Grose as Director In accordance with the Notice of Meeting the resolution to be put before the members is: “That Terry Grose, being a Director of the Company who retires by rotation under rule 7.1(d) of the Company’s constit
Slide 8: Resolution – Election of Zhang Quansheng as Director
Items of Business For personal use only Resolution 3 – Election of Zhang Quansheng as Director In accordance with the Notice of Meeting the resolution to be put before the members is: “That under rule 7.1(i) of the Company’s constitution, Zhang Quansheng, being an eligible person, is elected as a Di
Slide 9: Resolution – Approval of Employee Option Plan
Items of Business For personal use only Resolution 4 – Approval of Arafura Resources Limited Employee Option Plan In accordance with the Notice of Meeting the resolution to be put before the members is: “That, for the purpose of Exception 9 in Listing Rule 7.2, and for all other purposes, approval i
Slide 10: Resolution – Approval of 10% Placement Capacity
Items of Business For personal use only Resolution 5 – Approval of 10% Placement Capacity In accordance with the Notice of Meeting the resolution to be put before the members is: “That, for the purpose of Listing Rule 7.1A and for all other purposes, approval is given for the issue of Equity Securit
Slide 11: Arafura Resources: High Value Magnet Feed Rare Earths
For personal use only Arafura Resources High Value Magnet Feed Rare Earths Managing Director AGM Presentation November 2016 Arafura Resources Limited (ASX: ARU)
Slide 12: 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 13: Year In Review (2015 Scoresheet)
Year In Review (2015 Scoresheet) For personal use only Activity Regulatory Approval - EIS submission Complete Chinese test programs Project CAPEX & OPEX reductions Strategic and financial partners secured ongoing Other: Head count and corporate overhead reduced by 25-30% Key management personn
Slide 14: Project Approval Status
Project Approval Status For personal use only EIS Terms of EIS Studies & EIS Environmental Environment Notice of Intent Reference Issued Lodged Approval MLs Granted & All Mineral Lease Native Title Holders Negotiations Agreement Regulatory Approvals Land Applciations Identified Secured Groundwater G
Slide 15: CAPEX Nearly Halved
CAPEX Nearly Halved For personal use only Capex by Area (US$m) $500 Nolans Project Capex (US$m) $1,200 $400 $378 June 2015 $330 $1,000 Update, $304 $279 $1,221 $300 $234 $800 $195 Dec 2015 $179 Update, $200 $600 $835 June 2016 $133 $105 $96 Update, $73 $66 $400 $100 $82 $680 $50 $63 $58 $59 $31 $200
Slide 16: Other Project Enhancements
Other Project Enhancements For personal use only Reduced throughput defers plant upgrade to year 10+ Phosphoric acid recovered to reduce commodity risk Capital cost reduced to US$680m Operating costs reduced to US$6.23/kg TREO Reduction in waste streams Reduction in reagent usage Higher rare earths
Slide 17: Market Update
For personal use only Market Update Arafura Resources Limited (ASX: ARU)
Slide 18: Rare Earth Prices and Investment
Rare Earth Prices and Investment For personal use only REO Comparative Price Performance China’s consolidation to 140% the “big 6” producers has not impacted price 120% Other technology metals 100% (Li, Co) have out performed rare earths over 80% the same period 60% Price volatility – capital market
Slide 19: The NdPr Opportunity
The NdPr Opportunity For personal use only Arafura Resources Limited (ASX: ARU) 19
Slide 20: Market Focus – It's All About The Magnets
Market Focus – It’s All About The Magnets For personal use only NdPr accounts for 26.5% of Nolans rare earths composition by volume but 88% by value Arafura Resources Limited (ASX: ARU) 20
Slide 21: Market Focus – Growth Is In New Applications
Market Focus – Growth Is In New Applications For personal use only Established magnet market demand steady Magnet growth being driven by clean technologies Source: Adamus Intelligence, Arnold Magnetic Technologies, Japanese industry participants, Roskill Arafura Resources Limited (ASX: ARU) 21
Slide 22: EV Growth Enablers
EV Growth Enablers For personal use only Arafura Resources Limited (ASX: ARU) 22
Slide 23: EV Automakers Focus PMSM = NdPr Magnets
EV Automakers Focus PMSM = NdPr Magnets For personal use only Arafura Resources Limited (ASX: ARU) 23
Slide 24: Arafura's Marketing Strategy and Products
Arafura’s Marketing Strategy and Products For personal use only 2015-16 focus on cost reduction & process refinement 2017 focus will be on cementing offtake alliances with strategic partners 95% of revenue to be derived from customers in Japan, Germany, Korea and the USA mt on this slide refers to m
Slide 25: Project Funding
For personal use only Project Funding Arafura Resources Limited (ASX: ARU)
Slide 26: Project Funding Strategy
Project Funding Strategy For personal use only Underperformance (or failure) of non-Chinese producers and volatility in rare earth prices has resulted in reduced institutional equity investor interest in the rare earth sector Equity will remain primary source of funds in short term Debt finance will
Slide 27: Final Feasibility
For personal use only Final Feasibility Arafura Resources Limited (ASX: ARU)
Slide 28: Current Work – Starting Final Feasibility
Current Work – Starting Final Feasibility For personal use only 15 tonnes ore crushed (October) Piloting is expected to confirm previous bench scale gravity and flotation results: >80% REO recovery > 30% P2O5 >50% mass rejection Arafura Resources Limited (ASX: ARU) 28
Slide 29: Final Feasibility Schedule
Final Feasibility Schedule For personal use only 2016 2017 2018 Pilot Schedule Oct Nov Dec Jan Feb Mar April May June July Aug Sept Oct Nov Dec Jan Beneficiation Phosphoric Acid Process Bulk Pre‐leach Acid Bake RE Extraction Process RE Separation Process Detailed design •Detailed engineering Flowshe
Slide 30: Targets – 2017
For personal use only Targets – 2017 Arafura Resources Limited (ASX: ARU)
Slide 31: Re-cap – Targets for 2016-17
Re-cap – Targets for 2016-17 For personal use only Finalise piloting Formalise engagement with offtake and strategic players Fund activities to: Maintain schedule Avoid complex debt/equity or bond structures Minimise dilution Arafura Resources Limited (ASX: ARU) 31
Slide 32: Questions?
Questions? For personal use only Thanks for your support Questions? Arafura Resources Limited (ASX: ARU) 32
Slide 33: Contact
For personal use only Contact: Level 3, 263 Adelaide Terrace Perth 6000 T: +61 8 6210 7666 E: arafura@arultd.com Arafura Resources Limited (ASX: ARU)
Slide 34: Nolans Mineral Resources
Nolans 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. Numbers
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