Lynas Rare Earths Limited · ASX:LYC

Lynas Rare Earths — Lynas — Shareholder Meeting (August 2006)

7 slides from Lynas Rare Earths's shareholder meeting presentation, Aug 4, 2006

  1. Slide 1: Extraordinary General Meeting

    Extraordinary General Meeting 4 August 2006 Presented by Nicholas Curtis Executive Chairman

  2. Slide 2: Disclaimer

    Disclaimer ► The information contained in this presentation has been prepared using the information available to Lynas Corporation Limited (Lynas) at the time of preparation of the presentation. ► For further information about Lynas, you can obtain a copy of all recent ASX announcements made by Lyna

  3. Slide 3: Funding structure for development of the Mt Weld Rare Earths project

    Funding structure for development of the Mt Weld Rare Earths project $35m Convertible Note ƒ Five year term ƒ $0.40 conversion price with 8.25% coupon ƒ Lynas may force conversion if our shares trade above $0.80 for 30 days during the first year or $1.20 for any subsequent year ƒ Underwritten by RAB

  4. Slide 4: Intended application of funds raised

    Intended application of funds raised Upstream Project capital expenditure $65.0m ƒ Mt Weld mine development capital cost $16.2m ƒ Processing plant capital cost $40.4m ƒ Contingency (15%) $8.4m Corporate refinancing costs $10.6m ƒ Ashton outstanding contingent debt $5.6m ƒ Provision for repayment of

  5. Slide 5: Based on Mt Weld Composition, FOB China basis

    Given price projections, debt finance terms were considered too punitive to shareholders Rare Earths market history and independent forecast (REO Metric (US$/kg) • Project finance banks requested 5 yrs Tonnes) forward contracts for 80% of sales Based on Mt Weld Composition, FOB China basis 10.00 175

  6. Slide 6: The AIM market was the focus of the equity raising initially

    The AIM market was the focus of the equity raising initially AIM listing was priority… ƒ Engaged Transocean to advise and assist Lynas ƒ Appointed Arbuthnot as UK broker and NOMAD and Austock Securities as Australian broker ƒ To proceed AIM listing at a later date, subject to overall market conditio

  7. Slide 7: In summary

    In summary ► The Mt Weld Rare Earths project is funded ► Lynas has the only commercially viable deposit outside China, and will be one of the lowest cost producers in the world ► The Rare Earths market is global and growing rapidly ► The environmental and capital constraints are starting to restrict

Lynas — Shareholder Meeting (August 2006) on 6ix